The Prospectus

Jeff Cornwall comes out with a good, short methodology for writing a good, accurate, Business Plan. His emphasis on thorough study of your market cannot be understated. Recognize that a failed Business attempt constitutes one of the most savage sorrows, and one which impacts your future Credit access. A failed attempt will result in a couple of years of wasted effort, and available market is far more important to you than to the Lender. Sales are the end-game which must be achieved.

I personally favor a Marketing Plan format where each segment is tied to estimated Costs for that element in a short summary at the end of each segment (it should not lengthen the total Plan by more than three pages). Most Business Plan application do not adequately break down Marketing projections and Costs. A detailed format does two things: it shows the amount of research utilized, and most Lenders will stipulate where you have projected Shortcomings. Lenders who like the general tone of your proposal will not only criticize, but also advise of the methods adoptable to alter the Business Plan to make a acceptable Proposal (hint: rewrite your Business Plan to be acceptable, rather than approach another Lender with the original Plan). The Financial Statement section should not be just a Repeat of the financial summaries after each segment of the Marketing Plan, but include your own vision of your Business expansion; this will include expectations of future finance needs, and how much of the Business Profits you are willing to reinvest in the Business. Lenders want to understand the character of the Borrower and what he is willing to stake in the Business Project.

Approach of the Lenders by the Borrowers is also very important. Lending organizations often utilize the Committee approach, so be sure to have separate Executive Summaries in surplus, at least 5. Only One is likely to read the entire Business Plan, the One delegated to make sure than the Plan is consistent and doable; but All will read the Executive Summary. No decision on your Business Plan will be made until there is a Funds Distribution meeting of the Committee; it helps to be helpful in provision of materials to make that Distribution choice. Many a favorable commentary has come from the foresight to provide extra Copies of the Executive Summary, belaying a separation and Reprint of these segments of the Business Plan. lgl