One of the biggest challenges I see with techies who have a good, well researched opportunity is to effectively communicate their idea in a business plan format. Marcie Milletary captures the key advice that I usually share with entrepreneurs-in-waiting in her recent article in the TechyVent Pittsburg on line newsletter. Her advice echoes my top six words of wisdom (I know I should have 10 or 7, but these are my biggies, and 6 is an underused number anyway) that I share with the entrepreneurs I work with time and time again:
1. Focus. Keep only those things in your plan that directly support your message.
2. Concise. Most plans I read are too long not because they contain too much information, but because the writer takes too many words to make each point. There seems to be an insecurity that pushes the entrepreneurs to try and sound smarter by adding lots of long words, adjectives, adverbs, and general unneeded hyperbole.
3. Talk to the Audience. B-plans have a variety of purposes. They can be for an internal audience, an investor, a banker, a landlord, etc. Know who you are talking to and what they really want to know. Bankers, for example, generally like numbers with only a brief summary of the plan itself up front. Investors will want more on the industry and the marketing plan as they will want to understand what they are investing in. No matter who is the audience, use language that non-technical readers can understand. Have someone not in the industry read the plan to make sure it is completely understandable.
4. Lead with your Strengths. Different plans have different things going for them. It may be the founders, it may be the product, it may be the marketing plan, it may be an undiscovered industry trend, but what ever the key essence of your plan is should be placed up front and used to structure the rest of the plan.
5. Create a Strong Backbone. The backbone of a strong business plan is the logical link between the industry analysis and marketing plan with the revenue forecasts. That is where an experienced reader will look to see if the entrepreneur has really done his/her homework!
6. Be Honest. A business plan is not a marketing brochure!! Share the risks throughout the plan and be honest on what can be done to address those risks. Don’t make your competition sound like a bunch of idiots. Be realistic about their competitiveness and you own ability to compete in that marketplace.