Details, Details

Make sure you create the most flawless business plan you can and present it with these extras that make it easy to use and understand.

Cover Sheet
Include your name, the name of your business, your contact information (address, phone, fax, e-mail, and web site) and the date.

Table of Contents
Include the title for each section of your Business Plan, and the page number where it can be found.

Appendices
Resumes or bios of owners, board members and key employees
Pictures of the product
Floor plan and location map
More financial back-up information
Copy of your lease
Personal statement of net worth
3 years’ tax returns of principals
Letters of intent from customers and suppliers
Copies of pertinent legal agreements
List of fixed assets with appraisals of value
List of inventory
More financial information including accounts receivable and accounts payable summaries
Franchise contracts (if applicable)
Sample sales material

Question to ask yourself at this point:
Have we provided support for all of the claims we make in our business plan?

Presenting the Plan

I can’t emphasize enough how important it is to create a great 1st impression with your business plan. You don’t need a professional logo or graphics, but you do need to present a neat document with no typographical or grammatical errors.

TIP: Print only a certain number of copies and number them consecutively. Include a nondisclosure agreement to be signed by each person to whom you’ve given a plan.

Have at least three impartial advisors read your plan and critique it. Ask them to review it with particular questions in mind. If possible, rehearse your presentation to lenders, investors, or others. You want to use the clearest language possible when making oral presentations, and you want to convey the most information in the shortest time. Practice doing a 7-minute presentation, and a 25-minute presentation of your material.

You do the same thing when you meet with potential lenders, investors, or advisors. Think through why they would want to spend time, money, and energy on your product or service. You must make it worthwhile for them, and you can show that by doing the following.

Types of financing to consider: bank loans, lines of credit, trade credit, partners, venture capital, credit card financing, and family.

Lenders:
• Give the lender enough time to process your request. If you need money in 10 days, the lender will be concerned about your ability to plan ahead.

• Don’t assume anyone will invest in a project that you are not invested in yourself. You will probably have to put a substantial amount of your own money in the business to convince others to do the same.

• It may seem that others are investing money in a business, but they are really investing in you. You should be able to demonstrate that you have a responsible history with money with your personal credit history, and that you are capable of doing this kind of work with your personal work history.

• It may seem obvious, but lenders want to know that you can pay their money back. Make sure your cash flow forecasts show how you will do this with money to cover this debt service, and with enough left over in case things don’t go as planned.

Investors:
• Think about how much equity you are willing to share. Lenders need to be paid back, investors expect a substantial return on their money (perhaps doubling it in the first 1-2 years), and a share of your business that is in proportion to the risk they are taking on.

• As with lenders, investors expect that you will be taking a risk with your own money as well as theirs.

• Lenders generally will only want general quarterly financial reporting as long as you are making loan payments on time. Investors will expect much more frequent and detailed reporting.

• Investors will usually want to be on your board of directors or at least be involved in all the important company decisions.

Advisors:
• Sometimes key advisors will agree to a share of your company instead of taking cash payments for their consulting services. When they do, they become investors of a sort and demand the same kind of help with decision making and constant reporting that investors do.

• They want to know that you are listening to their advice and getting back to them with questions or progress reports.

• They want you to respect their time and prepare for meetings well with all relevant documentation.