ECONOMIC UPDATE - BORING QUARTER

Here's a good video that provides a snapshop of our current economic situation. Jobless claims come out prior to the holiday weekend...let's hope for smaller numbers!

http://www.cnbc.com/id/15840232?video=1167028705&play=1

WALL STREET JOURNAL - BIZ PLANS!

There are dozens of articles floating around about business plans, how to write them, why you shouldn't bother writing them, etc. This article that a friend sent me is a good one and worth the glance.

Wall Street Journal - Article

PART 5 - THE EXIT

The Exit is the final section of a well written Executive Summary. In this section, you should explain to the investor how you plan to provide a return on their investment. There are some key points in my previous post "Exit...Stage Left." This section gives you the opportunity to build trust with the investor. You should be 100% certain to show the investor that you will be a good agent of his/her money. Also, you should show that all partners and founders are in alignment and understand the possible exit strategies.

Below is a good video from our friends at FundFindr about exit strategies.

PART 4 - THE REQUEST

This is an easy section of your Executive Summary. It's pretty simple...here you'll state how much money your project needs to execute the strategy and tactics you've outlined in the remainder of your business plan. This is a great section to help you build credibility. If written correctly, this section will show the investor that you have at least given some thought to where you intend to deploy the $5m you just asked for. It should clearly state, in rough estimates, how much you need for marketing, website, equipment, office furniture, and other assets, as well as how much you need for working capital to keep the business liquid until it reaches a level of fitness. You should also state here what type of capital you are looking for...is it debt or equity financing?

Again, as in the other sections of your Summary, don't be overly wordy or detailed. Give them enough info to generate interest and leave the boring and made-up details for the next start-up that is pitching to them.

PART 3 - THE BUSINESS MODEL

So far we've discussed the first two sections of a well crafted Executive Summary: The Problem and The Solution. Next in line is the section we call The Business Model.

The Business Model section of your Summary should explain to the reader how and when your cash register is going to ring. It should explain who the actual paying customer is and your best assumption as to how frequently they will buy from you. You should explain the different ways you make money and drive revenue into the business. For example, in the health club business, club members pay a monthly or annual fee that may be automatically deducted from their preferred bank account. Additionally, clubs may have other revenue streams such as value added services that may include massage and spa treatments. They also may have a snack bar that creates an additional source of revenue.

Resist the urge to write a 2 page explanation of your Model here. The Summary should be just that...a Summary.

PART 2 - THE SOLUTION

In my previous post, I discussed the section of your Executive Summary where you clarify to the investor what problem you are solving in the marketplace. The next critical piece is your Solution. In this section you should be specific but brief about what you are offering and to whom. This section should depict the essence and energy of your business because this is where you sell yourself to investors. Clearly depict your product or service with commonly used terms to state concretely what you have, or what you do, that solves the problem you identified in the previous section. You should avoid using jargon or acronyms that don't mean anything to most people. You may also want to clarify where you fit in the value chain as well as the dynamics of your distribution channels and how you fit in. You should also use this section to be clear about any current customers and revenue channels so you can show you have passed the wallet test.