Who Needs To Be Convinced Of What?
Before starting to develop the business plan, entrepreneurs should look in detail at the recipients and their needs. Who do you want to win over with your business plan? What is your objective? What information does the recipient need, including information on which decisions have been based?
Tailor The Content To The Recipient’s Interests
“Marketing rules” apply to the business plan. For example, the content and level of detail must vary, or be tailored, depending on the target audience and objective. The same goes when selecting the enclosures. A venture capital company, for example, needs to be convinced primarily of the huge potential for growth, the great market opportunities and a high return on the project. For a lending bank or a leasing company, on the other hand, collateral requirements are front and centre.
The business plan can be prepared quickly and efficiently if ample time and attention have been devoted to the rough and detailed planning tools related to strategy and marketing. Developing a business plan is not about creating a document in accordance with specific guidance. Rather, it should be ensured that the recipient’s information needs are best met. So, when writing the business plan, try to put yourself in the recipient’s shoes. Weight the content accordingly, emphasize important information and omit the irrelevant.
The “Packaging” Also Matters
The business plan should win the recipient over to your project. Besides a logical and systematic structure as well as sound and consistent content, there are therefore some formal aspects that need to be considered:
- “Less is more” – the more concise and precise, the better. The business plan should be limited in size to 20 to 30 pages.
- The business plan should have a table of contents and consecutively numbered pages so that the recipient can quickly and selectively access the required information.
- Intelligible and clear language should be used. Investors or lenders are not fluent in industry-specific jargon.
- It is worth having the business plan checked for grammar, punctuation and spelling. The requirements should be regarded as the same as for a letter of application.
- An attractive and appealing design is worth a great deal. Used selectively, graphics and tables can improve the clarity considerably and have a positive impact on the overall impression.
- A “loose-leaf compilation” comes across as chaotic and unprofessional. A bound or stitched business plan is preferable.
- The contact data (name, address and telephone number) should be stated on the title page. If there is more than one initiator, only the lead person or the contact should be listed.
- Listing the recipient on the title page can give a business plan a “personal touch”.
- For large international projects, it makes sense to use English.
Contents Of A Business Plan
The following contents have proven worthwhile:
- Executive summary
- Author/team players
- Vision
- Description of products or services and business model
- Market and competition
- Own requirements and resources
- Summary of the analyses in a SWOT format and learnings
- Strategic success factors and thrusts
- Financial objectives (sales and contribution margins)
- Key measures (personnel, marketing, sales, capital investments in assets and infrastructure, protection of intellectual property, projects)
- Milestones
- Financial forecast (projected income statement, projected balance sheet, projected cash flow statement, liquidity planning, If applicable, key figures, If applicable, business valuation)
- Risk analysis for implementation
- Applications to business plan recipients
- Enclosures
