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When you begin to write your business plan or a section within it, you probably ask yourself, "What should I talk about? What key points should I bring out that are important to potential investors?"
The best way to answer these questions is to put your business plan trial. That's right. Think of your potential investors as the jury and you as the defense attorney. You must prove to the jury ? beyond a reasonable doubt ? why they should invest in your business plan. At stake is a life or death sentence for your business venture. Your job is to come up with all the evidence and present it in a way the jury believes you.
Yet Wholesale Odell Beckham Jr Jersey , if you look at the way most business owners and entrepreneurs prepare their business plans, they build no case at all. Instead, they mindlessly throw information down on paper, most of which is the same stuff all of their competitors are saying, just to say they have a business plan.
The typical business plan doesn't build a case
Take for example a business plan for a franchised auto repair facility. A typical business plan for this business would include claims like: nobody does what we do Wholesale Darius Slayton Jersey , we offer convenient hours to our customers, we use high quality parts, we have friendly professional technicians, we're experienced, and we'll make investors lots of money.
Does this build a case?
Let me ask this question differently. If you were interested in investing in a business would these types of claims convinced you that this business is the obvious investment choice for you? I don't think so. There are no real claims. No proof that this business is any different or any better than any other business. There are no compelling reasons for investors to believe that they'll earn more money investing in this business than through other investment alternatives. The only hope a business plan with such weak arguments has to attract investors is pure luck.
Imagine what it would be like if an attorney did as poor a job arguing a court case as most business plans do.
Let's take the Martha Stewart obstruction of justice trial. Stewart and her stockbroker Wholesale Julian Love Jersey , Peter Bacanovic, told the U.S. Securities and Exchange Commission and federal prosecutors that she sold her shares of ImClone on December 27, 2001. They claimed they sold the shares because the two had previously agreed to sell the stock when the price fell below $60 a share. Prosecutors argued the story was a lie. In the end, the jury agreed with the prosecution. But why?
Maratha's attorneys failed to build a strong enough case for her innocence. They were saying "Come tha wouldn't have done this! She's the domestic diva! She'd never risk her fortune for such a small e's no way she did it!"
As simplified and ridiculous as this may sound, it's about as good of a case as most business plans ever present to attract investors to their business. They tell investors: invest in us our business is better Wholesale Oshane Ximines Jersey , we're the low cost producer, we're more professional, we provide better service, we'll make you, our investors Wholesale Deandre Baker Jersey , a ton of money, and so forth.
Now, look at what the prosecution's attorneys in the Stewart case DID do. They researched and gathered all the evidence they needed to prove that Maratha did obstruct justice.
Evidence that included the testimony of Bacanovic's assistant. A phone call from Stewart to Sam Waksal, the president of ImClone, just minutes after she ordered the sale. Documents showing Bacanovic Wholesale Dexter Lawrence Jersey , a constant cell phone user, did not use his cell phone for nearly two hours on the afternoon in question. The absence of notes, e-mails, or phone records to prove the $60 agreement was in place. Evidence that the sole document suggesting an agreement existed was a forgery. The admission by Stewart, testified to by her best friend and travel companion Mariana Pasternak that Stewart knew the Waksals were selling when that information was non-public.
See how powerful and persuasive evidence is?
Three steps to building a case for your business plan
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05.03.2020 07:45
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