Rule 8. Your business plan is fiction, and everyone knows it

A business plan is not a promise to execute the venture in the manner outlined. You're guessing, just like the investors thinking about putting millions into your business. That's not to say the exercise is fruitless. Even if the industry morphs and your strategy shifts by the time you launch your Web site, writing a business plan will force you to shape your idea and come to decisions about the direction of your business. A business plan is a representation thought through many of the execution issues, which make all the difference. It is like a map of how you are going to put your business together.

Make it brief

 

However, in your enthusiasm, don't write a book. Twenty pages or fewer will do, starting with an executive summary. If you want to improve your chances of clinching the deal ensure that your business plan:

 

·         Has a crisp executive summary -- a concise description of the business, its mission, and the management to create the right first impression. If you don't catch someone's attention with your summary, you've lost your chance.

·         Avoids generalizations as they may turn out to be wrong

·         Gives the correct analysis, which is more telling than figures.

·         Highlights the revenue projections, which are more important than profit projections.

·         Tells what makes you different from the rest clamoring for space on the Net.

·         Talks about your competitors instead of ignoring them.

·         Does away with heavy and elaborate displays, as they don't really help.