In this segment we will be addressing the key elements that should be included in your business plan. Most venture capitalists will want your business plan to follow a very easy to read and follow format. The rest of this series on business planning will address each topic that you will find in the table of contents for business plans written by VC Plans. This outline is designed after the leading venture capitalists recommendations. As mentioned in part two, you will want to start with the executive summary. Following the executive summary you will want to clearly define the problem that your customers currently face. The obvious answer to the problem is how your company intends to solve the problem. Lastly, before getting into the fine details of your business plan, you will want to explain the historical context of your industry and how it has evolved in the recent past to create the opportunity you are presenting to investors. Following this detailed overview, the business plan then begins to discuss the fine details of how your business intends to operate and capitalize on the opportunity.
Typically, the fine detail will discuss the market, the competition, the product, the business model, the management team, and the financials. These sections are highly integrated and depend on each other so it is important build your business plan by starting on the section that relies the least on others. When you begin compiling your business plan, the order can be rearranged. The absolute easiest section to complete first is to discuss your management team. In the fourth part of this series we will describe how to properly sell your management team to investors and how to relate key experiences to the market you are targeting.