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					Business Plan Template And Tips

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544

Summary:
In this note, I want to share my learning on business plans with you.
Because I am involved in Venture Capital and Private Equity, I get a lot
of business plans. And going by the number of proposals we reviewed or
prepared in the last one year, the global economy is doing great! A lot
of individual professionals have opened their own companies, and many
companies are looking to grow with global demand for their
products/services.

The physical location of people is getting ...


Keywords:
Business Plan Template, Start-up, Venture Capital, New Product Launch,
Business Channel


Article Body:
In this note, I want to share my learning on business plans with you.
Because I am involved in Venture Capital and Private Equity, I get a lot
of business plans. And going by the number of proposals we reviewed or
prepared in the last one year, the global economy is doing great! A lot
of individual professionals have opened their own companies, and many
companies are looking to grow with global demand for their
products/services.

The physical location of people is getting less relevant in many
industries. The Internet is playing a role in every business plan, across
industries: Software Services, Financial services, Media, Healthcare,
Café and Retail chains, etc.

One of the most common questions I see is this: How should my business
plan look like?

Well, that depends on what your business aims to do, and who you want to
approach for capital. While there is no one answer to it, I want to share
a good business plan template that has been used with success. You can
download it from the link on this page.
http://alphaneuron.com/blog/business-plan-template-development-and-
review/

From our business plan reviews, I also see a common mistake many people
are making – there is a lot of emphasis on how much money is needed and
what kind of sales will happen, etc. But there is insufficient
information and analysis on the market in which you want to play and the
differentiators with respect to competition, and therefore, what makes
you think that you will win the sales that you show in your plan. Also,
none or very little information is shared on the systems/processes in
place for the business to run if you were to go down for some reason.
These are important parts of a business plan. And we hope the template we
have shared above will help you. Ideally, 20-25 slides are good for any
business plan, including references and supporting data.

So please keep the following in mind if you are going to develop a
business plan:

1. The purpose is to convince the investor that your plan is practical
and that there is a good chance for success.

2. If you send your plan to every VC and investor around, your effort
will be high, and also your rejection rate. Therefore, first connect with
prospective VCs and check if they are interested at all in what you are
proposing. It is often more productive to send customized mails to 20 VCs
than the same mail to 200.

3. Be willing to face a lot of NOs. Be ready to start things small with
alternate funding arrangements. If you will start only if VC money is
available, then your plan is weak.

4. Show options at key decision points, so that different possibilities
are visible. For example, what if the demand turns our to be only 50% of
what you planned? Or what if it is 200% of what you planned? What if you
go down with illness? What if a large company creates similar product?
Identify real-life risks and show options for them. This will be received
well because many VCs often start from the business risks.

5. There are many useful inputs available on the blog here that you can
use while making your business plan: http://alphaneuron.com/blog/