Characteristics of a Good Venture Plan

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