1-1 Discussion: The Business Plan: The Long and Short of It

Read the short article “Business Plan”. During this course, you will create your own business plan. While length and presentation vehicle are important, the failure of dotcommers was in part due to lack of planning. It is the planning aspect of the business plan that is so vital. What are the three main benefits of planning, in your opinion?

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Business plan

from Capstone Encyclopaedia of Business

The business plan is an essential business tool used as an aid to secure financing for a new venture. The dotcom start-up frenzy of the 1990s led to a reappraisal of business-plan contents and format. As venture capitalists were buried under a deluge of business plans from would-be dotcommers, the business plan became shorter and shorter, until it was frequently being presented as a PowerPoint display only.

Even after the dotcom slowdown, there remain conflicting opinions as to whether business plans should be long and detailed or short and concise, delivered in writing or in PowerPoint. In-depth or brief, a business plan will usually contain the following ingredients: an executive summary (the summary of the business plan in a couple of pages, including a summary of the summary – known as the elevator pitch); the space (a description of what market the business is in); marketing (an outline of marketing strategy and projected costs); management team (details of the management team, their areas of expertise and relevant experience); financials (realistic financial predictions such as breakeven point and cash burn rate); and an exit strategy (an appraisal of how the investors will recoup their investment).

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