7 How do you write a business plan?

Ifȱ youȱ don’tȱ knowȱ whereȱ youȱ areȱ going,ȱ anyȱ roadȱ willȱ takeȱ youȱ
there.ȱ Whenȱ peopleȱ talkȱ aboutȱ businessȱ plans,ȱ generallyȱ theyȱ areȱ
referringȱtoȱspecificȱdocumentsȱthatȱareȱusedȱtoȱconvinceȱinvestorsȱ
orȱ bankersȱ toȱ putȱ resourcesȱ intoȱ theȱ business.ȱ Thisȱ isȱ certainlyȱ oneȱ
useȱofȱaȱbusinessȱplan,ȱbutȱnotȱtheȱonlyȱuse.ȱBusinessȱplansȱcanȱbeȱ
usedȱtoȱattractȱkeyȱemployeesȱorȱtoȱapplyȱforȱregionalȱdevelopmentȱ
supportȱ forȱ example.ȱ Theȱ fundamentalȱ reasonȱ forȱ creatingȱ aȱ planȱ
though,ȱisȱtoȱfollowȱitȱtoȱyourȱintendedȱgoal.ȱ

Thisȱmayȱseemȱanȱobviousȱstatementȱtoȱmake,ȱbutȱtooȱmanyȱplansȱ
areȱ created,ȱ usedȱ toȱ raiseȱ financeȱ andȱ areȱ thenȱ storedȱ onȱ aȱ shelf,ȱ
neverȱtoȱbeȱlookedȱatȱagain.ȱYourȱbusinessȱplanȱshouldȱsetȱoutȱtheȱ
routeȱfromȱtodayȱtoȱwhereȱyouȱwantȱyourȱbusinessȱtoȱbeȱinȱthreeȱtoȱ
fiveȱ yearsȱ time.ȱ Moreȱ importantly,ȱ itȱ saysȱ howȱ youȱ areȱ goingȱ toȱ
achieveȱitȱandȱsetsȱoutȱmilestonesȱbyȱwhichȱyouȱcanȱmeasureȱyourȱ
performanceȱ alongȱ theȱ way.ȱ Aȱ goodȱ businessȱ planȱ therefore,ȱ
becomesȱessentialȱandȱcontinuousȱreadingȱasȱtheȱbusinessȱunfolds.ȱ
Itȱdoesȱnotȱremainȱstatic,ȱitȱisȱaȱlivingȱdocumentȱthatȱisȱcontinuouslyȱ
updatedȱ asȱ yourȱ knowledgeȱ ofȱ theȱ marketȱ growsȱ andȱ theȱ
opportunitiesȱunfold.ȱ

Whenȱisȱaȱbusinessȱplanȱnotȱaȱbusinessȱplan?ȱ
Whenȱ youȱ createȱ aȱ businessȱ planȱ andȱ circulateȱ itȱ toȱ raiseȱ
investmentȱ interest,ȱ youȱ needȱ toȱ beȱ veryȱ carefulȱ thatȱ theȱ
documentȱ doesȱ notȱ unwittinglyȱ becomeȱ aȱ prospectus.ȱ Aȱ
Prospectusȱ isȱ aȱ legalȱ definitionȱ ofȱ aȱ documentȱ thatȱ offersȱ
investmentȱ opportunities.ȱ Inȱ orderȱ toȱ protectȱ theȱ generalȱ
publicȱfromȱfraudulentȱorȱmisleadingȱinvitationsȱtoȱinvest,ȱtheȱ
140ȱȱȱȱȱȱ7ȱHowȱdoȱyouȱwriteȱaȱbusinessȱplan?ȱȱ

lawȱ setsȱ downȱ rulesȱ andȱ safeguardsȱ toȱ controlȱ whatȱ theseȱ
documentsȱ contain.ȱ Ifȱ youȱ circulateȱ yourȱ businessȱ planȱ toȱ
moreȱ thanȱ aȱ fewȱ peopleȱ itȱ couldȱ becomeȱ aȱ prospectusȱ inȱ theȱ
eyesȱofȱtheȱlaw.ȱ
Variousȱrequirementsȱareȱmadeȱofȱaȱprospectusȱandȱinvestorsȱ
canȱ sueȱ authorsȱ ifȱ theyȱ loseȱ moneyȱ andȱ findȱ thatȱ statementsȱ
madeȱinȱtheȱdocumentȱwereȱunȬjustified.ȱIssuingȱaȱprospectusȱ
thatȱdoesȱnotȱcomplyȱ withȱtheȱlawȱisȱalsoȱaȱcriminalȱoffence.ȱ
Askȱyourȱlawyerȱforȱadviceȱaboutȱtheȱlocalȱlawȱforȱinvestmentȱ
documents.ȱ
Theseȱissuesȱdoȱnotȱaffectȱyouȱifȱyouȱareȱonlyȱsendingȱcopiesȱ
ofȱ yourȱ planȱ toȱ banksȱ andȱ financialȱ institutions.ȱ Ifȱ however,ȱ
youȱ sendȱ copiesȱ toȱ accountantsȱ orȱ financialȱ intermediaries,ȱ
theyȱmayȱpassȱthemȱonȱtoȱtheirȱclients.ȱMakeȱsureȱyouȱknowȱ
andȱ restrictȱ theȱ useȱ ofȱ yourȱ documentȱ unlessȱ youȱ areȱ happyȱ
thatȱitȱcompliesȱwithȱtheȱlegalȱrequirements.ȱ
Numberȱeachȱcopyȱofȱyourȱdocumentȱandȱdoȱnotȱcreateȱlargeȱ
numbersȱ ofȱ them.ȱ Instructȱ theȱ recipientȱ andȱ printȱ inȱ theȱ
documentȱ aȱ statementȱ prohibitingȱ itsȱ copyingȱ andȱ furtherȱ
distribution.ȱ
Makeȱitȱclearȱonȱtheȱfrontȱofȱtheȱdocumentȱthatȱitȱisȱaȱbusinessȱ
planȱ orȱ informationȱ memorandumȱ andȱ notȱ anȱ invitationȱ toȱ
invest.ȱ Actuallyȱ sayȱ thatȱ potentialȱ investorsȱ shouldȱ takeȱ
professionalȱ adviceȱ andȱ areȱ expectedȱ toȱ makeȱ furtherȱ enqȬ
uiries.ȱ
Finally,ȱ don’tȱ setȱ outȱ aȱ clearȱ priceȱ forȱ sharesȱ orȱ includeȱ aȱ
subscriptionȱform.ȱ

Writingȱ theȱ businessȱ plan,ȱ likeȱ creatingȱ yourȱ financialȱ model,ȱ

shouldȱbeȱaȱteamȱeffort.ȱTheȱplanȱcanȱonlyȱbeȱachievedȱifȱtheȱteamȱ
believesȱinȱitȱandȱisȱcommittedȱtoȱitsȱsuccess.ȱByȱnecessity,ȱsomeoneȱ
willȱneedȱtoȱtakeȱchargeȱinȱitsȱproduction,ȱbutȱitȱshouldȱbeȱ‘owned’ȱ
byȱtheȱwholeȱteam.ȱ
 7.1ȱWhatȱshouldȱyourȱbusinessȱplanȱcontain?ȱȱȱȱȱȱ141ȱ

7.1 What should your business plan contain?

Veryȱ manyȱ books,ȱ pamphletsȱ andȱ websitesȱ areȱ availableȱ thatȱ

suggestȱstructuresȱandȱlayoutsȱforȱbusinessȱplanȱdocuments.ȱThereȱ
areȱsomeȱaspectsȱthatȱareȱdesirableȱandȱothersȱthatȱareȱoptional,ȱbutȱ
actuallyȱthereȱareȱnoȱhardȱandȱfastȱrules.ȱTheȱbestȱsetȱofȱheadingsȱisȱ
theȱ oneȱ thatȱ bestȱ tellsȱ theȱ storyȱ ofȱ yourȱ business.ȱ Theȱ planȱ shouldȱ
flowȱnaturallyȱandȱleadȱtheȱreaderȱthroughȱyourȱassumptionsȱtoȱitsȱ
logicalȱconclusion.ȱȱ

Asȱ aȱ generalȱ guide,ȱ mostȱ businessȱ planȱ documentȱ willȱ containȱ theȱ
followingȱcoreȱsections:ȱ
x Executiveȱsummaryȱ
x Theȱmarketȱ
x Theȱproductȱorȱserviceȱ
x Theȱmanagementȱteamȱ
x Theȱbusinessȱoperationsȱ
x Financialȱprojectionsȱ
x Financialȱrequirementsȱ
x Appendicesȱ

Theȱorderȱinȱwhichȱtheyȱappearȱwillȱvaryȱfromȱoneȱbusinessȱtoȱtheȱ
next.ȱ Inȱ someȱ situationsȱ itȱ mayȱ makeȱ moreȱ senseȱ toȱ describeȱ theȱ
marketȱ beforeȱ theȱ product,ȱ inȱ others,ȱ theȱ logicalȱ orderȱ isȱ theȱ
opposite.ȱ Thinkȱ aboutȱ howȱ youȱ structureȱ yourȱ argumentsȱ whenȱ
youȱ areȱ tellingȱ someoneȱ aboutȱ yourȱ business,ȱ theȱ orderȱ withȱ inȱ
whichȱyouȱexplainȱyourȱopportunityȱverballyȱcouldȱbeȱmatchedȱinȱ
theȱtextȱofȱyourȱplan.ȱ

The market

Youȱneedȱtoȱsetȱoutȱtheȱrealȱcommercialȱopportunityȱthatȱyouȱhaveȱ
identifiedȱ forȱ yourȱ business.ȱ Asȱ aȱ startȬup,ȱ typicallyȱ youȱ willȱ notȱ
haveȱaȱtrackȱrecordȱofȱmarketȱsalesȱtoȱdescribe,ȱbutȱyouȱcanȱsetȱoutȱ
theȱ marketȱ conditionsȱ youȱ expectȱ andȱ howȱ youȱ areȱ differentȱ fromȱ
theȱexistingȱincumbents.ȱYouȱwillȱdrawȱonȱaȱlotȱofȱtheȱanswersȱyouȱ
142ȱȱȱȱȱȱ7ȱHowȱdoȱyouȱwriteȱaȱbusinessȱplan?ȱȱ

developedȱ whenȱ analysingȱ yourȱ businessȱ opportunityȱ backȱ inȱ

chapterȱ one.ȱ Makeȱ sureȱ theȱ readerȱ understandsȱ theȱ problemȱ thatȱ
yourȱcompanyȱisȱgoingȱtoȱsolveȱforȱyourȱcustomers.ȱ

Defineȱ theȱ marketȱ sectorȱ inȱ termsȱ ofȱ itsȱ size,ȱ itsȱ performanceȱ andȱ
characteristics.ȱ Describeȱ theȱ customerȱ groupsȱ youȱ haveȱ identifiedȱ
andȱ setȱ outȱ theȱ scaleȱ ofȱ theȱ opportunity.ȱ Describeȱ theȱ industryȱ
characteristicsȱtoo,ȱwhoȱareȱtheȱcompetition,ȱhowȱyouȱwillȱcompeteȱ
withȱthemȱandȱwhatȱtheȱmainȱbarriersȱtoȱentryȱare.ȱȱ

Finallyȱdescribeȱyourȱmarketingȱapproachȱandȱstrategy.ȱIfȱyouȱhaveȱ
segmentedȱ theȱ market,ȱ describeȱ theȱ firstȱ fewȱ segmentsȱ andȱ brieflyȱ
justifyȱtheirȱchoiceȱandȱorder.ȱȱ

Asȱyouȱdescribeȱtheȱmarket,ȱyouȱmayȱwantȱtoȱreferȱtoȱdocumentedȱ
evidenceȱorȱplansȱyouȱhaveȱcreated.ȱCopiesȱofȱtheseȱcanȱbeȱincludedȱ
inȱtheȱdocumentȱappendices.ȱȱ

The product or service

Describeȱ yourȱ solutionȱ toȱ yourȱ customers’ȱ problemȱ inȱ clearȱ andȱ
plainȱ language,ȱ beingȱ carefulȱ notȱ toȱ overȬhypeȱ yourȱ description.ȱ
Youȱ shouldȱ howeverȱ emphasiseȱ theȱ uniqueȱ sellingȱ pointsȱ andȱ theȱ
competitiveȱedgeȱyouȱexpectȱtoȱachieve.ȱIfȱtheȱofferingȱisȱtechnicallyȱ
orientated,ȱthisȱwillȱbeȱessentialȱasȱtheȱreadersȱareȱlikelyȱtoȱbeȱnonȬ
specialists.ȱDescribeȱtheȱcurrentȱstateȱofȱtheȱoffering,ȱitȱmayȱbeȱthatȱ
youȱ haveȱ aȱ prototype,ȱ someȱ earlyȱ versionsȱ inȱ trialȱ orȱ thatȱ youȱ areȱ
readyȱtoȱgoȱtoȱmanufacture.ȱȱ

Describeȱwhatȱintellectualȱpropertyȱrightsȱmightȱexistȱandȱanyȱthatȱ
areȱalreadyȱsecured.ȱIfȱyouȱhaveȱpatentsȱorȱtradeȱmarks,ȱincludeȱtheȱ
documentsȱinȱtheȱappendixȱandȱreferȱtoȱthem.ȱȱ

Youȱshouldȱalsoȱdescribeȱyourȱpricingȱstrategy.ȱHowȱmuchȱdoesȱitȱ
costȱyouȱtoȱmakeȱandȱprovideȱtheȱofferingȱandȱwhatȱdoȱyouȱintentȱ
toȱ chargeȱ forȱ it.ȱ Ifȱ thereȱ areȱ futureȱ revenuesȱ fromȱ consumables,ȱ
 7.1ȱWhatȱshouldȱyourȱbusinessȱplanȱcontain?ȱȱȱȱȱȱ143ȱ

serviceȱ packagesȱ orȱ upgrades,ȱ describeȱ theȱ costsȱ andȱ earningsȱ youȱ
anticipate.ȱ

Yourȱ approachȱ toȱ futureȱ productȱ developmentȱ canȱ alsoȱ beȱ

describedȱhere.ȱThisȱmightȱincludeȱyourȱvulnerabilityȱtoȱcompetingȱ
technologyȱ andȱ howȱ youȱ willȱ protectȱ yourȱ position.ȱ Itȱ mightȱ alsoȱ
includeȱ theȱ developmentȱ ofȱ yourȱ ownȱ technologyȱ toȱ createȱ secondȱ
generationȱproductsȱorȱotherȱapplications.ȱ

The management

Asȱ youȱ know,ȱ theȱ managementȱ teamȱ isȱ anȱ essentialȱ partȱ ofȱ anyȱ
investmentȱ decisionȱ andȱ isȱ criticalȱ toȱ yourȱ business’ȱ chancesȱ ofȱ
success.ȱThisȱsectionȱofȱtheȱplanȱisȱusedȱtoȱconvinceȱtheȱreaderȱthatȱ
youȱhaveȱtheȱrightȱteamȱtoȱconvertȱtheȱplanȱintoȱreality.ȱThisȱmightȱ
includeȱ descriptionsȱ ofȱ bothȱ theȱ boardȱ andȱ theȱ executiveȱ manageȬ
mentȱteam.ȱ

Eachȱ keyȱ memberȱ ofȱ theȱ teamȱ shouldȱ beȱ introducedȱ inȱ theȱ planȱ
documentȱ withȱ aȱ paragraphȱ describingȱ theirȱ skills,ȱ experienceȱ andȱ
responsibilitiesȱ withinȱ theȱ company.ȱ Tryȱ toȱ keepȱ theȱ descriptionsȱ
conciseȱ withinȱ theȱ mainȱ documentȱ butȱ includeȱ fullȱ CVsȱ inȱ theȱ
appendix.ȱAnȱorganisationalȱplanȱisȱaȱgoodȱwayȱofȱquicklyȱshowingȱ
theȱstructureȱofȱtheȱmanagementȱteam.ȱȱ

Ifȱyouȱhaveȱgapsȱinȱtheȱteam,ȱdescribeȱtheȱroleȱandȱyourȱstrategyȱtoȱ
fillȱtheȱpost.ȱItȱmayȱbeȱthatȱyouȱdon’tȱneedȱtheȱpositionȱfilledȱuntilȱ
otherȱmilestonesȱareȱreached,ȱthereȱisȱnoȱharmȱinȱshowingȱhowȱtheȱ
managementȱwillȱgrowȱasȱtheȱcompanyȱdevelops.ȱ

Describingȱ yourȱ teamȱ shouldȱ alsoȱ includeȱ thoseȱ outsideȱ theȱ

organisationȱthatȱyouȱrelyȱon.ȱYouȱshouldȱlistȱyourȱadvisersȱsuchȱasȱ
yourȱ auditorsȱ andȱ accountants,ȱ lawyers,ȱ intellectualȱ propertyȱ
agents,ȱevenȱyourȱbankers.ȱ
144ȱȱȱȱȱȱ7ȱHowȱdoȱyouȱwriteȱaȱbusinessȱplan?ȱȱ

The business operations

Thisȱsectionȱdescribesȱhowȱyourȱbusinessȱwillȱoperate.ȱHowȱitȱwillȱ
makeȱ theȱ productsȱ orȱ provideȱ theȱ service.ȱ Theseȱ shouldȱ beȱ
describedȱ brieflyȱ atȱ firstȱ toȱ provideȱ anȱ overviewȱ thenȱ pointȱ theȱ
readerȱtoȱfurtherȱdetailsȱinȱtheȱappendix.ȱ

Describeȱanyȱqualityȱsystemsȱthatȱareȱinȱplaceȱorȱplannedȱandȱwhatȱ
certificationsȱareȱrequiredȱforȱtheȱproductȱorȱservice.ȱȱ

Ifȱ youȱ haveȱ notȱ alreadyȱ explainedȱ itȱ elsewhere,ȱ describeȱ theȱ
company’sȱ approachȱ toȱ researchȱ andȱ developmentȱ andȱ howȱ impȬ
rovementsȱwillȱbeȱmadeȱtoȱtheȱofferingȱinȱtheȱfuture.ȱ

Theȱ corporateȱ objectivesȱ canȱ alsoȱ beȱ describedȱ here.ȱ Setȱ outȱ theȱ
milestonesȱbyȱwhichȱyouȱwillȱmeasureȱtheȱbusiness’ȱsuccessȱandȱifȱ
relevantȱ setȱ outȱ theȱ intendedȱ exitȱ strategyȱ andȱ timescaleȱ forȱ
investorsȱtoȱreceiveȱaȱreturnȱonȱtheirȱinvestment.ȱ

The financial projections

Ifȱ youȱ haveȱ createdȱ aȱ financialȱ model,ȱ theȱ assumptionsȱ andȱ

highlightsȱ shouldȱ beȱ describedȱ inȱ theȱ businessȱ plan,ȱ perhapsȱ evenȱ
includingȱ aȱ profitȱ andȱ lossȱ accountȱ withinȱ theȱ bodyȱ ofȱ theȱ
document.ȱTheȱfullȱmodelȱshouldȱbeȱprovidedȱinȱtheȱappendix.ȱȱ

Forȱeachȱmajorȱassumptionȱwithinȱtheȱfinancialȱmodel,ȱsuchȱasȱtheȱ
salesȱ forecasts,ȱ youȱ shouldȱ describeȱ andȱ justifyȱ theȱ approachȱ youȱ
haveȱtakenȱtoȱarriveȱatȱtheȱnumbers.ȱUseȱgraphsȱandȱtablesȱtoȱmakeȱ
itȱeasierȱforȱtheȱreaderȱtoȱunderstandȱtheȱforecasts.ȱ

Ifȱyouȱareȱusingȱtheȱdocumentȱtoȱraiseȱinvestmentȱinterest,ȱitȱmightȱ
beȱworthȱusingȱanȱexternalȱaccountantȱtoȱverifyȱtheȱmodel.ȱThisȱwillȱ
addȱ confidenceȱ inȱ theȱ projectionsȱ asȱ anȱ externalȱ expertȱ hasȱ challȬ
engedȱtheȱassumptionsȱandȱresults.ȱ
 7.1ȱWhatȱshouldȱyourȱbusinessȱplanȱcontain?ȱȱȱȱȱȱ145ȱ

The financial requirements

Ifȱtheȱbusinessȱplanȱisȱtellingȱaȱstory,ȱthisȱisȱtheȱpunchȱline.ȱThereȱisȱ
veryȱ littleȱ pointȱ devotingȱ allȱ theȱ effortȱ intoȱ settingȱ outȱ theȱ
opportunity,ȱ theȱ productȱ andȱ theȱ teamȱ ifȱ youȱ areȱ notȱ goingȱ toȱ askȱ
theȱreaderȱforȱwhatȱyouȱwant.ȱItȱwouldȱbeȱlikeȱreachingȱtheȱendȱofȱaȱ
fairyȱtaleȱandȱtheȱprinceȱnotȱaskingȱtheȱprincessȱtoȱmarryȱhim.ȱ

Beingȱ carefulȱ notȱ toȱ makeȱ anȱ explicitȱ offer,ȱ youȱ shouldȱ setȱ outȱ theȱ
needsȱ ofȱ yourȱ businessȱ andȱ theȱ methodsȱ youȱ proposeȱ toȱ satisfyȱ
them.ȱ Thisȱ mightȱ includeȱ descriptionsȱ ofȱ howȱ muchȱ theȱ financingȱ
willȱ relyȱ onȱ debtȱ asȱ opposedȱ toȱ equityȱ investment,ȱ whetherȱ
investmentȱ isȱ requiredȱ inȱ stagesȱ orȱ inȱ oneȱ lumpȱ sum.ȱ Ifȱ youȱ haveȱ
notȱ describedȱ anȱ exitȱ strategyȱ elsewhereȱ inȱ theȱ document,ȱ itȱ couldȱ
beȱincludedȱhere.ȱ

The executive summary

Theȱ executiveȱ summaryȱ isȱ theȱ firstȱ partȱ ofȱ anyȱ plan,ȱ butȱ Iȱ haveȱ
includedȱitȱatȱtheȱendȱofȱtheȱlistȱbecauseȱitȱshouldȱbeȱtheȱlastȱthingȱ
youȱwrite.ȱȱ

Theȱ executiveȱ summaryȱ determinesȱ whetherȱ theȱ restȱ ofȱ theȱ

documentȱ evenȱ getsȱ readȱ atȱ all.ȱ Itȱ shouldȱ beȱ short,ȱ aȱ maximumȱ ofȱ
twoȱpages,ȱandȱshouldȱincludeȱallȱtheȱkeyȱelementsȱfromȱtheȱotherȱ
sectionsȱofȱyourȱplan.ȱȱ

Itȱneedsȱtoȱbeȱpowerfullyȱpersuasiveȱbutȱrealistic.ȱYouȱshouldȱtryȱtoȱ
avoidȱ‘salesȱspeak’ȱandȱhype.ȱItȱshouldȱalsoȱstandȱalone.ȱSometimesȱ
youȱ mayȱ beȱ askedȱ toȱ sendȱ anȱ investorȱ anȱ executiveȱ summary,ȱ ifȱ
theyȱ likeȱ whatȱ theyȱ see,ȱ theyȱ mightȱ thenȱ askȱ toȱ seeȱ theȱ wholeȱ
document.ȱ
146ȱȱȱȱȱȱ7ȱHowȱdoȱyouȱwriteȱaȱbusinessȱplan?ȱȱ

7.2 How should the plan be prepared?

Theȱ mostȱ importantȱ thingȱ aboutȱ yourȱ businessȱ plan’sȱ presentationȱ

isȱthatȱitȱshouldȱbeȱreadable.ȱThisȱmeansȱyouȱshouldȱavoidȱtheȱuseȱ
ofȱ jargonȱandȱ clearlyȱ explainȱ anyȱtechnicalȱ terms.ȱ Youȱ mightȱ wantȱ
toȱ includeȱ aȱ glossaryȱ ofȱ termsȱ ifȱ yourȱ businessȱ isȱ technicallyȱ
orientated.ȱȱ

Itȱisȱalsoȱveryȱimportantȱtoȱrememberȱwhoȱyouȱareȱwritingȱtheȱplanȱ
for.ȱ Thinkȱ aboutȱ whoȱ theyȱ are,ȱ whatȱ theyȱ wantȱ toȱ know,ȱ whatȱ
actionȱ youȱ wantȱ themȱ toȱ takeȱ andȱ whatȱ languageȱ willȱ theyȱ
understand?ȱItȱmayȱevenȱbeȱnecessaryȱforȱyouȱtoȱgenerateȱdifferentȱ
versionsȱofȱtheȱplanȱtoȱshowȱtoȱdifferentȱaudiences.ȱ

Theȱ useȱ ofȱ colour,ȱ picturesȱ andȱ diagramsȱ canȱ helpȱ theȱ readerȱ
understandȱ theȱ mainȱ pointsȱ quickly.ȱ Ifȱ youȱ haveȱ aȱ prototype,ȱ orȱ
evenȱ aȱ finishedȱ product,ȱ includeȱ aȱ photographȱ orȱ screenȱ shotȱ toȱ
showȱreaderȱthatȱthereȱisȱsubstanceȱbehindȱtheȱwords.ȱ

Youȱ shouldȱ alsoȱ takeȱ careȱ withȱ yourȱ useȱ andȱ presentationȱ ofȱ
numbers.ȱForȱexampleȱifȱIȱwriteȱthatȱtheȱnumberȱofȱunitsȱboughtȱbyȱ
theȱ marketȱ lastȱ yearȱ wasȱ 3675429,ȱ itȱ isȱ notȱ atȱ allȱ easyȱ toȱ read.ȱ
Somethingȱ asȱ simpleȱ asȱ addingȱ aȱ fewȱ commasȱ soȱ thatȱ itȱ becomesȱ
3,595,429ȱmakesȱitȱaȱlittleȱeasierȱbutȱhowȱrelevantȱisȱtheȱprecisionȱofȱ
theȱ number?ȱ 3.6mȱ isȱ aȱ lotȱ clearer,ȱ asȱ isȱ ‘moreȱ thanȱ threeȱ andȱ halfȱ
millionȱ units…’ȱ Tablesȱ ofȱ numbersȱ shouldȱ beȱ treatedȱ inȱ theȱ sameȱ
way,ȱshowȱfinancialȱprojectionsȱinȱthousands.ȱ

Generallyȱ theȱ businessȱ planȱ forȱ aȱ startȬupȱ companyȱ shouldȱ notȱ beȱ
longerȱthanȱ10ȱorȱ15ȱpages.ȱTheȱreaderȱshouldȱbeȱableȱtoȱreadȱitȱinȱ
oneȱ sittingȱ andȱ notȱ getȱ boredȱ byȱ theȱ timeȱ theyȱ reachȱ theȱ end.ȱ Toȱ
achieveȱ thisȱ lengthȱ whilstȱ stillȱ providingȱ allȱ theȱ information,ȱ youȱ
shouldȱ makeȱ useȱ ofȱ appendicesȱ toȱ backȱ upȱ theȱ pointsȱ madeȱ inȱ theȱ
mainȱ text.ȱ Ifȱ inȱ doubtȱ asȱ toȱ whetherȱ toȱ includeȱ something,ȱ leaveȱ itȱ
out.ȱIfȱtheȱreaderȱisȱinterestedȱandȱhasȱmoreȱquestions,ȱtheyȱwillȱaskȱ
 Howȱdoȱyouȱmakeȱbusinessȱpresentations?ȱȱȱȱȱȱ147ȱ

you.ȱAtȱthatȱpointȱyouȱcouldȱargueȱthatȱtheȱplanȱhasȱdoneȱitsȱjob,ȱitȱ
hasȱraisedȱinterestȱandȱyouȱareȱnowȱtalkingȱtoȱitsȱtargetȱaudience.ȱ

Theȱphysicalȱappearanceȱofȱtheȱbusinessȱplanȱisȱalsoȱveryȱimportant.ȱ
Theȱ appearanceȱ ofȱ theȱ planȱ reflectsȱ onȱ youȱ andȱ yourȱ business.ȱ Itȱ
shouldȱnotȱcontainȱanyȱspellingȱorȱgrammaticalȱerrors.ȱMistakesȱlikeȱ
theseȱhaveȱaȱdisproportionatelyȱnegativeȱimpactȱandȱsuggestȱlackȱorȱ
careȱandȱattentionȱtoȱdetail.ȱȱ

Theȱpresentationȱofȱtheȱplanȱisȱcomplexȱandȱeasyȱtoȱgetȱwrong.ȱYouȱ
needȱ toȱ strikeȱ aȱ balanceȱ betweenȱ makingȱ aȱ goodȱ impressionȱ andȱ
lookingȱflashy.ȱIfȱtheȱreaderȱfeelsȱthatȱyouȱhaveȱwastedȱgoodȱmoneyȱ
onȱaȱflashyȱcoverȱorȱbinding,ȱtheȱwrongȱmessageȱwillȱbeȱgiven.ȱTheȱ
idealȱlookȱshouldȱshowȱthatȱyouȱareȱprofessional,ȱcompetentȱbutȱnotȱ
extravagant.ȱȱ

How do you make business presentations?

Makingȱ businessȱ presentationsȱ canȱ beȱ aȱ nerveȱ rackingȱ occasion.ȱ

Popularȱtelevisionȱprogrammesȱmayȱportrayȱtheȱworstȱexamplesȱofȱ
investorsȱ dismantlingȱ aspiringȱ businessȱ people,ȱ butȱ theȱ realityȱ canȱ
beȱ closeȱ toȱ this.ȱ Fortunately,ȱ ifȱ youȱ areȱ properlyȱ preparedȱ andȱ
knowledgeableȱ aboutȱ yourȱ opportunityȱ andȱ plans,ȱ itȱ isȱ entirelyȱ
likelyȱthatȱtheȱexperienceȱwillȱbeȱpositiveȱandȱhopefullyȱrewarding.ȱ
Rememberȱthatȱtheyȱhaveȱinvitedȱyouȱinȱbecauseȱtheyȱareȱinterestedȱ
inȱyourȱplan.ȱTheyȱhaveȱfarȱbetterȱthingsȱtoȱdoȱwithȱtheirȱtimeȱthanȱ
useȱyouȱforȱsport.ȱ

Theȱ firstȱ thingȱ toȱ doȱ whenȱ preparingȱ toȱ makeȱ aȱ presentation,ȱ isȱ toȱ
findȱ outȱ whoȱ youȱ willȱ beȱ presentingȱ to,ȱ howȱ muchȱ timeȱ youȱ haveȱ
andȱ whatȱ youȱ thinkȱ theyȱ wantȱ toȱ know.ȱ Mostȱ presentationsȱ willȱ
involveȱyouȱtalkingȱforȱaboutȱ20ȱminutesȱfollowedȱbyȱquestionsȱandȱ
discussion.ȱ Rememberȱ thatȱ theyȱ areȱ likelyȱ toȱ beȱ busyȱ peopleȱ andȱ
appreciateȱ conciseȱ presentations,ȱ ifȱ youȱ boreȱ themȱ orȱ takeȱ upȱ tooȱ
muchȱtime,ȱtheyȱwillȱnotȱbeȱimpressed.ȱ
148ȱȱȱȱȱȱ7ȱHowȱdoȱyouȱwriteȱaȱbusinessȱplan?ȱȱ

Yourȱ formalȱ presentationȱ shouldȱ coverȱ theȱ mainȱ aspectsȱ ofȱ theȱ
businessȱplan,ȱprobablyȱinȱtheȱsameȱlogicalȱorderȱinȱwhichȱyouȱhaveȱ
laidȱoutȱtheȱdocument.ȱUsingȱaȱpresentationȱpackageȱandȱlaptopȱtoȱ
showȱslidesȱisȱaȱgoodȱwayȱofȱstructuringȱtheȱpresentation.ȱItȱisȱbestȱ
toȱ makeȱ sureȱ thatȱ yourȱ presentationȱ canȱ beȱ projectedȱ ratherȱ thanȱ
haveȱ peopleȱ huddleȱ aroundȱ aȱ smallȱ screen.ȱ Askȱ ifȱ theyȱ haveȱ aȱ
projectorȱavailable,ȱifȱnot,ȱconsiderȱtakingȱoneȱwithȱyou,ȱevenȱifȱthatȱ
meansȱhiringȱoneȱforȱtheȱday.ȱȱ

Itȱ canȱ beȱ aȱ goodȱ ideaȱ toȱ involveȱ aȱ numberȱ ofȱ peopleȱ inȱ theȱ
presentation.ȱ Goingȱ inȱ withȱ aȱ teamȱ ofȱ threeȱ orȱ fourȱ peopleȱ showsȱ
yourȱ commitmentȱ andȱ ensuresȱ thatȱ theȱ appropriateȱ peopleȱ areȱ onȱ
handȱ toȱ answerȱ questions.ȱ Tryȱ toȱ keepȱ theȱ actualȱ presentersȱ downȱ
toȱoneȱorȱtwo.ȱYourȱshowȱcanȱloseȱitsȱflowȱifȱtooȱmanyȱpeopleȱtakeȱitȱ
inȱturnsȱtoȱtalk.ȱȱ

Ifȱ possible,ȱ takeȱ examplesȱ ofȱ yourȱ workȱ orȱ productsȱ withȱ you.ȱ Letȱ
theȱ audienceȱ tryȱ itȱ out,ȱ touchȱ andȱ feelȱ itȱ andȱ understandȱ whatȱ
progressȱyouȱareȱmaking.ȱȱ

Whenȱyouȱareȱmakingȱpresentationsȱtoȱsmallȱgroups,ȱperhapsȱevenȱ
toȱ oneȱ person,ȱ doȱ notȱ beȱ surprisedȱ ifȱ theyȱ startȱ askingȱ questionsȱ
duringȱ yourȱ talk.ȱ Thereȱ areȱ twoȱ approachesȱ youȱ canȱ take,ȱ oneȱ
approachȱisȱtoȱaskȱthemȱpolitelyȱtoȱletȱyouȱfinishȱandȱkeepȱquestionsȱ
toȱtheȱend.ȱTheȱsecond,ȱandȱbetterȱapproach,ȱisȱtoȱtakeȱtheȱquestionsȱ
asȱ theyȱ comeȱ butȱ tryȱ toȱ steerȱ theȱ conversationȱ backȱ toȱ theȱ currentȱ
slideȱandȱthenȱcontinueȱwithȱyourȱplannedȱpresentation.ȱTryȱnotȱtoȱ
letȱ thisȱ disturbȱ you,ȱ theyȱ mustȱ beȱ interestedȱ toȱ haveȱ askedȱ theȱ
question,ȱaskingȱthemȱtoȱwaitȱcanȱbeȱveryȱoffȬputting.ȱ

Likeȱ manyȱ aspectsȱ ofȱ business,ȱ presentationsȱ areȱ madeȱ easierȱ andȱ
moreȱ effectiveȱ withȱ goodȱ preparation.ȱ Doȱ aȱ practiceȱ runȱ andȱ timeȱ
yourself,ȱwriteȱpromptȱcardsȱtoȱensureȱyouȱdon’tȱmissȱanything,ȱbutȱ
don’tȱreadȱfromȱaȱscript,ȱthisȱlooksȱlikeȱyouȱdon’tȱknowȱtheȱmaterialȱ
wellȱ enough.ȱ Makeȱ sureȱ youȱ arriveȱ withȱ plentyȱ ofȱ timeȱ toȱ setȱ
yourselfȱ upȱ andȱ getȱ theȱ projectorȱ working.ȱ Finally,ȱ whileȱ youȱ areȱ
 Howȱdoȱyouȱmakeȱbusinessȱpresentations?ȱȱȱȱȱȱ149ȱ

waitingȱforȱtheȱaudienceȱtoȱjoinȱyou,ȱkeepȱyourȱteamȱconversationsȱ
professionalȱandȱpositiveȱ–ȱwallsȱcanȱsometimesȱhaveȱears.ȱ