The Bulletproof Business Plan: How To Bulletproof Your Business Plan During A Slumping Economy

Overview: The article revolves around the idea that investors are looking for a clear, solid business model that makes a profit or will make one soon. So among other things, one needs to describe the business in an understandable fashion. One should always talk about the competitors in detail in the business plan: identify direct, indirect, and even potential competitors and describe their offerings, their percentage of the market, their funding, and their pricing, distribution, and promotion strategies. Most important, the plan should be crystal clear about how the own offering is different and why it gives customers a better value. Some evidence that customers will buy the product -- and buy it at the price one is charging -- is essential in a business plan today. If start-up founders cannot produce full-fledged paying customers, they might do well to provide information on beta customers, who have used a test version of the product. Results from focus groups made up of potential customers can also provide some proof of demand. When it comes to sales and distribution, entrepreneurs should not rely on an if-one-build-it-they-will-come model any longer. Today a business plan should include information about the industry's principal distribution channels and typical sales cycles and a well-thought-out -- if possible, proven -- model for the company's own sales and distribution.

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Format: HTML | Date: Jan 2003 | Pages: 1