The essential elements of the plan are generally recognized. The preliminary sections
set the stage for the reader and make the first impression. They should be professional,
concise, and informative because readers may put the plan aside if it doesn’t catch their
interest at the outset. The major sections describe the new venture’s strategy, operations,
marketing, management, financial plan, and ownership structure. These sections need to
be as detailed as possible and internally consistent. The concluding sections deal with
details on timing, schedules, and milestones, and provide a summary. The appendixes
contain reference material for documentation.
Each plan must be well written and organized, and it must anticipate the many ques-
tions readers will have. No plan can answer all such questions, so the entrepreneurs must
be familiar with all the details so they can respond to unanswered questions and cri-
tiques.DISCUSSION QUESTIONS
- Discuss the costs and benefits of writing a business plan.
- Who should write a business plan? Who should not bother? Who must write a business
plan? - Why are the preliminary sections so important?
- What information should be conveyed in the executive summary?
- Distinguish between short-term and long-term objectives. Between quantitative and quali-
tative objectives. Between efficiency and effectiveness. Give examples. - How is the market analysis section linked to the marketing section?
- How is the marketing section linked to the financial sections?
- How are the financial sections linked to the management and organization sections?
- How are the management and organization sections linked to the deal structure and own-
ership sections? - What questions are likely to be asked by investors reading your business plan? Why are these
concerns important to the investor? - Discuss the benefits of careful presentation and effective writing style.
KEY TERMS
Bootstrapping
Business plan
Effectiveness
Efficiency
External audiences
Internal audiences
Logo
Long-term objectives
Nascent entrepreneur
Objectives
Product/market/technology configuration
Qualitative measures
Quantitative measures
Short-term objectives
Tag lineThe Business Plan 181