162 ENTREPRENEURSHIP
- The copy number of the plan (e.g., “copy 2 of 7”). This is a matter of security and
exclusivity. For security reasons, the entrepreneur must know how many of the plans
are in circulation and who has them. Eventually, all of them should be returned
because a business plan contains sensitive and strategic information that must not
fall into the hands of unscrupulous competitors. Exclusivity, the second reason for
limiting circulation, simply means that it is not good practice to have dozens of
copies of the plan circulating in the financial community. Financiers like to consid-
er opportunities that are not concurrently offered to others. If a plan is overcirculat-
ed, it acquires a negative reputation as “shopworn.” - The company’s logo. Every firm should have a logo, a design, picture, or ideograph
that represents the company. The association of a company name with a pictorial
design gives the reader (and eventually the customer) two ways to remember the
company and its products. A new venture can employ clip art or the latest comput-
er technology to design its own logo using a graphics or drawing program from a
personal computer. A large firm with a substantial budget can hire an advertising
agency and a commercial artist to design its logo. A venture should also have a tag
line, which is a short, descriptive, easy-to-remember, and sometimes humorous
phrase that connects to the business and appeals to customers.
Sometimes a logo can be more than just a picture or symbol for the company. In
Street Story 5.1 we see a company transformed by its logo and tag line These elements
have become the most memorable and distinctive parts of the business.Table of Contents. The table of contents follows the cover page and adheres to the for-
mat of the business plan elements. Each major section is numbered and divided into sub-
sections, using one of two common numbering methods. The Harvard outline method
uses Roman numerals for main headings, capital letters for major sections, Arabic num-
bers for subsections, and the number-letter combination (e.g., 1a) for even smaller sub-
sections. The decimal format numbers each major heading, starting at 1.0, and subsec-
tions that follow are numbered 1.10, 1.11,... 2.0, 2.10, 2.20, etc. The executive sum-
mary and the appendixes are not numbered this way. The executive summary precedes
the numbering and, therefore, has no number; the appendix numbers are in Arabic pre-
ceded by “A” (A.1, A.2, and so on) to indicate that they are appendixes.
If the plan has a significant number of tables, figures, drawings, and exhibits, a sepa-
rate table can be prepared listing these with their titles and page numbers. Any
consistent and coherent organizing method may be used. However, because the purpose
of the table of contents and the table of figures is to make it easier for readers to extract
pertinent information, complicated and arcane systems of cataloging should be avoided.Executive Summary. The executive summaryis the most important part of the busi-
ness plan because it is the first section of substance that the reader sees. Most readers,
especially investors, never read beyond the summary. They have too many plans to read
and too little time. Thus, if the summary is not convincing, the reader goes on to the
next plan. It is estimated that only 10 percent of all business plans are read thoroughly,
meaning that 90 percent are rejected after the summary.^19
Although the summary is the first part to be read, it should be the last part written