Today we take a lesson on business plans. For all you young and inspiring entrepreneurs this blog post may give you some insight. Taking advice from expert business plan advisors Jay Turo and Dave Lavinsky, who are founders of the largest banking and strategic advisory firm will help to clarify the key components of a business plan.
According to Lavinsky, the executive summary is often the first thing an investor will read. Lavinsky goes on to say, “ resources/skills/strategic positioning of the Company's management team make it uniquely qualified to execute the plan,” (Lavinsky 2010) marketing opportunity and profitability must be included in this executive summary to get investors to look at your plan. Mr. Lavinsky also expresses the importance of a financial model in your business plan.
The financial plan seemingly important for it breaks down the expenses, cost and how the investor will be repaid. This is a critical component because if investor do not see a way to make their money back they are less likely to invest. Another expert who is a staff reporter for the Wall Street Journal and a business writer, David E. Gumpert takes a different approach to the business plan. Gumpert feels that it is important not only to describe your company but how you will make profit.
According to Gumpert, “it must do more than simply describe your business—it must also sell you and your business and convince the backer you have what it takes to make the business succeed over the long term (Businessweek.com, Jan. 2008).” Mr. Gumpert was quoted saying this in the Buniess week column about selling yourself to reach the investor.
Also in that article Gumpert states the five key components to developing a successful business plan are an executive summary, the company analysis, the industry analysis, the analysis of customers and the competition. Also, another key component that could be used is a key tool that can be used to sway an investor according to Gumpert, which is the “ passion,” tool. He describes it as a “soft skill,” but says you must be passionate about your project and it must be displayed in your business plan.
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