Chapter One. The Business Plan
It felt like it was time to update this book. We called our publisher, John Wiley & Sons, and discussed the ideas we had for a new edition. Wiley “did” a business plan. It may not have been written in the format suggested in this book, but make no mistake, before the company agreed to a new edition, it analyzed the competitive marketplace, determined if it could get a fair return on investment, looked at the credibility of the authors, and decided to invest in the new edition. This is exactly what any potential investor does when reading a business plan.
Keep in mind that entrepreneurs are most often doers rather than proposal writers. They would rather be on the battlefield—the cutting edge of business—than behind the lines planning their assault. They always want “to get on with it.” In addition, many entrepreneurs have difficulty articulating the business concepts that have often become second nature to them. They cannot find a way to share their vision in a manner that is conducive to some of the important sponsors of their project.
The same entrepreneur who can rally his team of employees to achieve breathtaking accomplishments often cannot sell the idea to the capital markets. The entrepreneur’s personal confidence in the venture may be enough to get early investors and key employees on board, but not enough to convince others who do more thorough due diligence before investing. With so many ventures seeking funding, translating ideas and personal ...