by
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DO be brief. Begin with a two- to three-page
executive summary. Then limit the body of the plan to seven- to ten typewritten
pages. Note that internal business plan and budgets are normally more detailed
than those presented to external investors. Include everything important to the
business and financing decision, but leave secondary issues and information,
such as detailed financial information for discussion at a later meeting.
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DO let the reader know, early on, what type
of business the company is in. While this may seem obvious, many plans tell the
reader this information on page 20, for example, and with other plans, the
reader is never certain.
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DO state the company’s objectives.
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DO describe the strategy and tactics that will
enable the company to reach those objectives.
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DO cite clearly how much money the company
will need, over what period of time, and how the funds will be used.
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DO have a clear and logical explanation about
the investor’s exit strategy.
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DON’T use highly technical descriptions of
products, processes and operations. Keep it simple and complete.
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DO be realistic in making estimates and
assessing market and other potentials.
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DO discuss the company’s
business risks. Credibility can be seriously damaged if existing risks and
problems are discovered by outside parties.
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DON’T make vague or
unsubstantiated statements. For example, don’t just say that sales will double
in the next two years or that new product lines will be added without
supporting details.
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DO be specific. Substantiate
statements with underlying data and market information.
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DO summarize and properly
structure internal budgets and plans to facilitate review by outside parties.
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DO enclose the
proposal/business plan in an attractive but not overdone cover.
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DO provide extra copies of the
plan to speed the review process.