Lessons Learned for a Business Plan

Dr. William A. Cohen has been a real inspiration to me in regards to my business plan.  I have been particularly impressed with his advice to focus on the executive summary; he suggested keeping it very brief, but specific, because investors want a quick read that really “hits them.” (Videojug.com)

Dr. Cohen’s other advice is to pay attention to the table of contents.  This is something I will need to address in my plan and make some adjustments.  As he explains it, potential investors want to see exactly where the data is located, so they can quickly turn to it and see what they feel is important.  The table of contents is what directs them to that information, quickly and concisely, without superfluous data. 

Growthink founders, Dave Lavinsky and Jay Turo, also impressed me with their list of key attributes to a successful plan, particularly the notion of using reverse engineering to understand how to best establish action plans.  Also, the idea of “communicating ‘brilliantly’” is something I am striving to incorporate into my plan, focusing on my audience and speaking appropriately to them in this document. (Growthink.com)

These suggestions have given me great guidance in developing my plan, and have provided great inspiration in making changes to my plan.  These have also focused my attention on the most important sections of my plan.  The executive summary is my most important piece, as it expresses the mission of the business and the who, what, where and why.  The financial data is also very important, as it offers a very good picture of how things will be setup and what can be expected from the company.  It also shows the plan, financially, and the potential for the future in regards to the earning potential. 

By focusing on these sections, and adapting what I’ve learned from the experts, I believe my business plan will benefit greatly from what I’ve learned from others and from my research.

Expert Opinions on Business Plans

One expert on business plans is a company called Growthink, which specializes in the building of successful business plans.  The founders of Growthink are Dave Lavinsky and Jay Turo. 

Dave has lectured at many universities over the years and has written many articles on the development of effective business plans.  He is a successful entrepreneur, having started many businesses over the years, and has sat on the board of the Los Angeles Regional Technology Alliance.  He has an MBA from UCLA and a BA from the University of Virginia.  He resides with his wife and two children in New York.

Jay has helped lead Growthink into one of the top companies in the country in the areas of strategic and financial advising for entrepreneurs.  He has worked with a large number of new companies, and has been an active investor – as well as a writer and speaker – in entrepreneurial endeavors.  Jay also earned his MBA at UCLA’s Anderson School of Management, and his BA was earned at Stanford University. He is married, with two children, and lives in Los Angeles.

On a Growthink video, Dave explains about their five key attributes of a successful business plan:

• ·      The right value proposition – offering customers what they truly want
• ·      The right marketing and sales strategy – well-thought out/comprehensive plans
• ·      The right business model – think through all possibilities; this model is more important than the industry
• ·      Using reverse engineering to develop action plans – look ahead 5 years, then work backwards from there
• ·      Communicating “brilliantly” – business plans are marketing documents; think about who you are marketing to (lenders, employees, partners/distributors, management)

(Growthink.com)

Dr. William A. Cohen is an author and founder of Institute of Leader Arts, and has penned more than 52 books and provided guidance for over a thousand businesses and marketing plans.  He is a former Major General, graduated from West Point and flew 174 combat missions in Vietnam, and earned numerous military awards.  Dr. Cohen has a Ph.D. in business management from the Peter F. Drucker School of Management at Claremont Graduate University.  Dr. Cohen also has his own website, www.stuffofheroes.com.

On Videojug.com, Dr. Cohen offers his advice on what a business plan is, and what the most important parts of such a plan are.  He references the importance of a plan when he referred to a statement one often hears, “Until you have it in writing, you don’t have it.”  (Videojug.com)

Dr. Cohen says the most important parts of a business plan are the executive summary and the table of contents.  He explains that the executive summary is very short, but it is so important because when you are looking for money, all investors will read that first – the summation of what you are going to do.  This is very practical matter for investors who may be reviewing hundreds of business plans each year; they want a brief overview – and if it “hits them” it will go in one pile, otherwise it goes in another pile and is rejected. 

The table of contents is important, because it provides the potential investors with a direct guide to find the information they want to read.  Dr. Cohen clarifies that if an investor, for example, has a background or expertise in finances, he will want to focus in on the financial segment of your business plan and not have to search for that data. 

According to Dr. Cohen, the key to a successful business plan is to “Adopt a structure that you’re comfortable with.”  He comments that he feels a business plan is your story, and it should be fun, and if it isn’t, there is something wrong with it.

http://www.growthink.com/businessplan

http://www.videojug.com/interview/business-plans