Do I need a written business plan?

Many entrepreneurs have the impression that they need to have a fully-developed business plan document before they can approach a potential investor or lender.  The reality is that few if any sources of capital have an interest in reading 40 pages about your venture.

The following library of items will have you well prepared for the process of engaging and carrying on a productive discussion with the investment community:

– Executive Summary (2 – 3 pages in length, the purpose of this document is to give you something to provide as an e-mail attachment or handout in hopes of getting a 60 minute meeting to fully describe your business.)

– Slide Deck (Prepare two versions of this.  The first is designed for use in meeting where you are the presenter.  Keep the verbiage brief so that the audience is listening to you instead of reading slides.  The second needs to be more descriptive, and will be used in situations where someone asks “Do you have a slide deck that you can send to me?”  Because you will not be there to present these slides they need to do a more complete job of telling the story, thus the need for more words.

– Expanded Executive Summary (8 – 15 pages in length, this is for someone who wants to read more about your business after reading the Executive Summary or having met with you.  Think about this as taking the place of the full business plan, and designed to be read in 15 minutes rather than an hour.)

Don’t hesitate to write a more expanded business plan if you believe that it will help you organize your thoughts and/or provide you with value as a management tool, but you will rarely encounter a situation where such a document is necessary in order to satisfy a potential investor’s desire for information about your business.

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