Executive Summary Begin the document with a synopsis of the entire plan.
Although it’s the always the first element of a business plan, the executive summary is written last.
For example, you may have revenue from a big quarterly order as well as a steady stream of income from monthly sales.
Identifying dry cash-flow periods will let you allocate additional resources to those slow times, avoiding cash crunches that can make it hard to pay your bills. Cash flow is different from profitability (the amount of money left after subtracting expenses from revenue).
Some people think a business plan is only necessary if you’re seeking investors or a loan.
In fact, a business plan is much more than a financing device.
At a minimum, your business plan should have best- and worst-case scenarios in four key areas: Operating budget.
List your business’s day-to-day operating expenses — rent, salaries, supplies, insurance, telephone, Internet and the like — and the income that you’ll need to offset them.
The Management Team “One of my mentors used to tell his business school classes there are three things we invest in: Team, team and team,” says Eric Chin, general partner at Crosslink Capital in San Francisco, an investor in early-stage businesses.
A strong management team with a mediocre idea is more attractive to many investors than a weak management team with a great idea.