PART 1 - THE PROBLEM

Is your new product or service a "solution" looking for a "problem?"

If you're trying to raise money from a venture capitalist or angel then you should always pitch your business from the perspective of solving a customer's problem. Don't make the mistake of telling everyone how cool your new widget or new technology is unless you can directly tell the story of how it solves someone's problem. It's the same thing when you're a sales person and you're constantly selling your product or service's "features" instead of its "benefits." A customer doesn't care about the bells and whistles of your widget unless they can see how it will benefit them.

The same concept holds true when putting together your business plan. You have to be crystal clear that your business is solving problems and generating a benefit to a market. Start by explaining why the situation exists in the marketplace and why it is that only now can it be addressed. Use this part of your Executive Summary to explain the market dynamics and the size of the opportunity...briefly.