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The business plan is a necessary but not sufficient condition for finding outside investors. The plan describes the business and what it might become, and that`s all. A beautifully written, edited, and formatted business plan will not make a less investible business more investible.

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The best use of business plans starts with founders using plans to establish strategy, tactics, milestones, and (especially important) essential projections of sales, spending, headcount, startup costs, capital needs; it`s for the founders to know, first, what they plan to do.

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This can be as simple as having a mentor or partner review elements of your plan, or conducting market research and speaking directly to your potential customer base.

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To understand your competitors and the industry, you`ll need to do market research. Invest time and effort and do market research correctly. A business can`t succeed if the owners don`t understand their industry, target customers, or the competition.

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Do not misunderstand, these are important inclusions in your plan; however, during the early stages of drafting, it is important to create a broad vision that can be adapted once your specifics have been identified.

If you are writing a business plan to get a bank loan or because you`re asking angel investors or venture capitalists for funding, you must include the details of what you need in the executive summary.

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