This Thursday, I was chatting with a friend with whom I share a few business plan reviews every month – one point that stood out is being explained as follows.
Guidance for creating the perfect business plan is available in abundance over the Internet. That’s the front end. A lot of teams prepare well before pitching – good back end is needed. Many a times, when a ‘what-if’ question is asked to the teams, specially if the question was not expected by the team, they fumble. Even if they have the data with them, there is no simple way to extract useful information from it than what was prepared for.
Teams assume, we will revert to the investor. The truth is, this is time and opportunity missed. What could make you stand out is if you still had a reasonable answer to the investor that the very moment. Back-up charts, variable fields in the spreadsheet, or even a diagram that shows that such an unexpected scenario too has been thought off, puts you on a very comfortable position when seeking money. It needs to be simple – I have seen financial model simulations running while the investor is waiting – you’d miss his attention – simplify it. When you are so well prepared, keep this too ready in your magic bag!
- Small business tips series: Is it worth writing a business plan? (hiscoxusa.com)