Published September 2001

Keep mission, investors
in mind for business plan

We all know about the dot-com fallout. Even though this turn of events has been disastrous for some, the creative spark continues to burn for others. Ideas abound in and outside of companies. People find a problem and build a solution; people see a need and provide an answer.

So, if you plan to start a business, already have started one or are resetting the direction of the company within your division, a well-written business plan remains the key to success. A cross between a research assignment and an advertisement, it lays out your vision for the company and for your investors.

Whether you plan to seek capital for research and development, market-share growth or additional operations space, you need to demonstrate to the investor, your lender or your team that you know how to create a profitable operation. And, as in all writing, staying organized and succinct never was more important than in this significant and consequential document.

Consider the following points:

The executive summary. Your executive summary, never more than three pages, means just that: a summary of your business idea and its direction. It contains your goals, objectives and your mission. For example, if your business is computer retailing, will you establish a one-stop shop or focus on selling rebuilt hardware? Articulate clearly what you hope to accomplish. For example, do you wish to become the leader in this field or provide low-cost computers for nonprofits as a counterpoint to more expensive setups?

Write concisely and efficiently. Don’t say things twice. Make your sentences crisp with strong active verbs and concrete nouns. Remember, your business plan will not be the only one presented to investors or the leadership team. Short and sharp sentences that engage the reader win every time. Keep it jargon-free and write with a “less is more” attitude.

Write for your reader. Remember, you are introducing your company to a perspective investor. Each potential investor has specific needs and concerns, and you need to pay attention to them as you put this section together. What do they invest in? How many deals do they do in an 18-month period? Study what type and size of investments they get involved with. Do the due diligence on them.

Write in the present tense. Use the present tense in your sentences. You plan to accomplish these objectives now, not at a future date. So write, for example, “we are,” “we have” — not “we will.”

Powerful messages. Make certain your document contains the powerful messages that assure the investor of your direction. Presenting the details as to how you will use the investment to create value for all should guide your writing. The writing must have clarity so that prior knowledge is not required to understand who and what you are about.

Get help. Find an outside source to read your plan and coach you through the process if you feel unsure. Getting feedback on your plan can save you heartache, time and money.

Use bullets. Bullets and lists help the reader quickly skim your major points. Take care that those points have enough detail to stand on their own.

Remember the one-legged interview — keep it short. Keep the image of the amount of time you can stand on one leg in the back of your brain. That will help you remember the purpose of your document: to give your reader a clear but concise picture of your idea and what you can accomplish.

The effort you put into articulating your vision determines whether your entrepreneurial dream will pay off. As Mahnaz Eshetu at the Small Business Development Center at Washington State University said, “A business plan is a road map. If you want to go somewhere, don’t you get the address?”

Dr. Julie Miller has helped thousands of individuals and organizations transform their writing skills while reducing the amount of time spent on individual documents. She can be reached at 425-485-3221, or visit her Web site, www.DrJulieMiller.com. Her online business writing courses will be available this month.

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