How to Write a Business Plan? Tips from London Business School

One of the things that we've come to realize is that writing a business plan that will successfully garner the attention of venture capitalists is easier said than done. We see a ton of great business ideas but if those ideas can't clearly be articulated then they can be dead in the water.

So a tip from our judges is that startups must make sure the BP has structure and there is a clear understanding of its purpose. Here are a few good tips written by Dr Michael Hay, Professor of Management Practice at London Business School:

"Your business plan is a sales tool. It is essential that it looks good and reads well. Professional presentation is critical. Beyond this you should observe the following guidelines:

1. The text should be cogent, concise and clearly laid out;



2. Focus on key issues, avoid extraneous details. Knowing what to leave out is just as important as knowing what to include;



3. State clearly what makes your product different or better and exactly where you intend focusing. Trying to do too much is indicative of a poor understanding of what you could do best;



4. Formulate objectives that are unambiguous, consistent, credible and compatible with industry experience;



5. Show that you really understand how your target market operates, what your customers want, how you will distinctively meet these needs and on what basis you will compete successfully.



6. Display a clear understanding of your investor’s needs and interests;



7. Avoid complete infatuation with your product and how it will be produced;



8. Demonstrate that the team you have assembled has the balance and the track record to exploit the market opportunity as well as the determination to stick with the venture;



9. Openly address risks and problems, explaining how you intend dealing with them;



10. Ensure that the plan is intelligible and complete in itself, having no need of additional data or explanation. Think also about who could most compellingly sell your plan in a ten-minute oral presentation.

Finally, never lose sight of your audience. Remember that there may not be a single, homogeneous audience. Tailor your plan to meet the needs of your different audiences. Write your plan for a specific audience, not for yourself. "

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