Chapter 11 What a Bankable Business Plan Should Look Like

Qualities of a Bankable Business Plan Neat, professional appearance Well-written with no spelling errors To the point, not verbose or long-winded Complete…doesn’t leave the reader with lots of questions

Format for a Bankable Business Plan 1.Cover page 2.Table of Contents 3.Executive Summary 4.Text covering all 10 action steps 5.Appendix with all exhibits

Format for a Cover Page Name of the company Single phrase describing what the company does Names of founders or partners Name, address, phone, and for contact person

Bug-Be-Gone Cover Page

The Executive Summary Gateway to the plan Many funders will reject based on Executive Summary alone One page or less in length Covers all ten action steps

Ten Action Steps 1.Define Your Company: What will you accomplish for others and you? 2.Identify Your Company’s Initial Needs: What will you require to get started? 3.Choose A Winning Strategy: How will you distinguish your product or service from others? 4.Analyze Your Market: Who will want your product or service? 5.Develop a Strong Marketing Campaign: How will you reach your customers and what will you say to them? 6.Build A Dynamic Sales Effort: How will you attract customers? 7.Design Your Company: How will you hire and organize your workforce? 8.Target Your Funding Sources: Where will you find your financing? 9.Explain Your Financial Data: How will you convince others to invest in your endeavor? 10.Use the RMA Database: Check Your Answers Against the Answer Key.

Sample Executive Summary This one paragraph covers all 10 action steps in four sentences: Bug-Be-Gone Corporation is seeking to raise $10 million in equity capital from individuals who will invest at least $1 million each (2, 8) to develop and market a unique line of fruit-scented insecticides that are non-toxic to humans and pets (1, 3, 4, 5). Bug-Be-Gone is owned and managed by Roger Roach whose 20 years of experience in the insect extermination business will enable him to hire the most knowledgeable entomologists and the most precise bug sprayers in the industry (7). The company has already received preliminary orders from the three major firms that supply 80% of the California market, which consumes 50% of all insecticides in the United States (4, 5, 6). The financial projections show the company achieving higher than average profit margins (10) and that equity investors will receive returns in excess of 35% annually by the third year of operation (1, 9).

Other Guidance for a Strong Plan Have outsiders read it Give it a rest and then reread it Keep revising to make it stronger