FAQ’s – Creating a Business Plan

Frequently Asked Questions and Answers

• What is a Business Plan

A business plan is the description of the business and how it will operate. It is not an "offering memorandum" and cannot be used to solicit investor participation.

• How do I create a compelling business plan?

You need to imagine yourself as an investor in your project and decide what information that you would need to know to make an informed decision. Also, use a business plan outline to assist you.

• Is there a business plan outline or template I can use?

We offer a free business plan outline that you will find most helpful. ( Link to Business Plan Outline )

• Do you have a business plan sample I can look at?

Yes, there is a free business plan sample available on our website. It will give you a sense as to what level of sophistication your own plan must attain for you to be successful. ( Link to Business Plan Sample )

• How do I begin writing the business plan?

Begin with a good outline and flesh out the outline. I usually recommend printing our outline and filling in the information by hand. Put it by your chair where you watch TV. Carry it on the train. Bring it to work. As you think of answers – jot them down in the outline. Don’t try writing the plan until you finish the outline. Once you have the handwritten outline completed you can take a crack at writing the plan yourself. When you are done, have someone give you an objective critique. If the plan isn't really good; your likelihood of success is severely compromised.

• Should I give the business plan to potential investors?

No, once you are satisfied with the business plan you should create your investor documents. A (PPM) Private Placement Memorandum, a Subscription Agreement and if you are a (LLC) Limited Liability Company, you will need to also present the investor with an Operating Agreement. (These are all documents you can have your lawyer prepare for you or do it yourself). A lawyer will charge in the ballpark of $10,000 - $20,000 to prepare these documents. If money is an issue, you will find all these documents are available on our website with instructions that will allow you to prepare your own investor documents. (Link to PPM & Subscription Agreement Template) Link to LLC Operating Agreement)

• Is a business plan and private placement memorandum the same?

No, the business plan has information about the business operation. The (PPM) Private Placement Memorandum includes both the business plan information and additional information regarding the details pertaining to the Offering. In the document we offer, you would copy and paste your business plan into the PPM.

• What is the most important thing to remember when writing the business plan?

The plan will ultimately be incorporated into a Private Placement Memorandum, which is one of the investor documents you will need to create and give investors before accepting their money. The document must be accurate and must contain “all material” information that the investor will need to make their decision. Omitting “material information” will be a violation of federal Securities Laws. So make sure you have included “everything”.

• What should I do when I have completed the business plan?

Most people who write their business plan have never either written a plan before and/or never successfully raised investor capital. It is recommended that you have it professionally reviewed for both content and appropriate language. We review many business plans that will not be successful because the writer did not take this extra crucial step in his process. Remember, once you show your plan to an investor and they say No you can’t go back. You have one shot with every prospect. You should make it your best shot.

• How long should it take me to write my business plan?

That is difficult to say because it depends on the complexity of the business. Is it a start up or operating business. How long has it been in business. This step is really crucial because it is also your opportunity to really think through the idea of what you intend to do with the money you raise. Take your time and do it right.

• How many pages should my business plan be?

There is no set amount of pages. However, don’t add information that is not necessary to the investor. In other words, keep out the information that is de minimus. The longer the document the less likely it is to be read. We receive plans here that are 150 pages long and that is 100 pages more than necessary.

Are you deciding whether to proceed or even how to proceed raising capital for your business or a new start up; you will find that there is a great deal of free information on this website. If you have decided to take your project to the next level you may want to consider reviewing our audio seminars. These seminars not only provide much higher level of knowledge and information but on completion allow you structure a “game plan” of what needs to be done and how to do it.

Copyright 2011- Lance Shields-All Rights Reserved-About the author  >>>click here<<<