Friday, December 30, 2011

I have to write a business plan...where do I start?

Comprehensive advice on writing a business plan requires much more space than a typical blog post can provide, and there are those who even question the necessity of a true, 70-page business plan.  Today, many business plans just take the form of a slide deck (e.g., PowerPoint presentation).  But, how does one even get started?

First, identify the Problem you're trying to solve.  Don't provide your solution yet, but clearly state the problem, and the magnitude of it.

Next, provide the consequences of the Problem.  What is the current outcome of the Problem?  Again, make sure this is quantified.

Next, state your Solution.  Make sure your Solution is disruptive and revolutionary.  Just making something a little better isn't going to fly with investors.  They are looking for home runs, and you need disruptive solutions to hit home runs.

Next, state the consequences of your Solution.  And quantify this.

Once you've done the above steps, you have a great foundation for your business plan and executive summary.  Then you can go on to address the other essential topics in the business plan (market, management, competition, financials, etc.).

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