Characteristics of a Good Venture Plan
- Presents a clear explanation of why the venture concept is a significant opportunity
- Provides a concise description of the venture's products or services
- Provides a clear, rational explanation of why the venture idea is better than anything else already available
- Succinctly explains customer benefits in qualitative and quantitative terms
- Provides a clear explanation of the one or two things the company does best
- Focuses on market-driven opportunities
- Provides evidence of customer acceptance of the venture's products and services
- Presents evidence of the marketability of the products and services
- Presents a quality, sophisticated, experienced management team, advisors, and board of directors with complementary and encompassing business skills
- Gives a clear sense of what the founders expect to accomplish in 3 to 7 years
- Provides a rational explanation of why the investor should trust the management team to do what they say they are going to do
- Identifies all the alternatives available to prospective customers
- Addresses how the venture will develop and sustain a distinct competitive advantage
- Addresses how the venture will develop and sustain a proprietary position
- Contains reasonable financial projections with key data explained and justified
- Shows how and when the venture will generate sustainable positive cash flow streams
- Describes the manufacturing and/or service delivery processes and associated costs in appropriate detail
- Explains and justifies the level of product development required
- Justifies financially the means chosen to sell the products and services
- Supports credible growth projections
- Provides a clear explanation of how the money invested in the venture will be used
- Shows how and when the venture will generate sustainable profit
- Shows an appreciation of investor needs
- Shows how investors can cash out in three to seven years, with an appropriate return on their investment
- Provides a clear explanation of what the investor will get for their investment
- Identifies significant risks and proposes rational contingencies
- Has the right appearance...not too fancy, not too plain
- Is arranged properly with the executive summary, table of contents, and chapters in right order
- Is the "right length"...not too long, not too short...to convey all the pertinent information
- Is plausible throughout
- Has facts rather than opinions
- Is quantitative rather than qualitative
- Stresses specifics rather than generalities
- Reads like a combination of the Wall Street Journal, a model of good business writing, and USA Today, a model of good story-telling