Question

Topic: Strategy

Pro Forma Busines Plan

Posted by Anonymous on 250 Points
How to write pro forma business plan?
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RESPONSES

  • Posted by Chris Blackman on Accepted
    You've already been given all then right headings to form the skeletal structure for your plan.

    Couple of additional points that might be helpful:

    Include nice neat versions of elements of your planning process, such as the enevironmental analysis (SWOT, PEST, Porter) and, if you have one, your Strategy Map (and Balanced Scorecard) into the plan document. It won't add many pages but it will make you look professional, and show the reader that you've done the hard yards.

    I agree with Vevolution's comments about the financial projections. However, I don't think you need to include the detailed financial spreadsheets for 5 years. A simple summary showing top-line revenue, investment inputs, aggregated costs and NPBT should suffice. You can perfrom an IRR and DCF on these simpole numbers, and it won't be too much for anyone to take in.

    Once the BP creates interest from potential investors, JV partners, whoever, you can drill down to the full detail, cell by cell, as poart of the due diligence process. This will help protect your operational IP, and enable you to customise the numbers without looking like you've redone the whole plan, should the need arise.

    One other point - make the summary just that - a summary. All the key points at highest level, no more but certainly no less. Many potential investors will ONLY (and barely!) read the Exec Summary, so, if it doesn't explain why this business will succeed, they won't read the rest, no matter how pretty you make it.

    Finally - get your final document critiqued by someone who knows what a good plan should look like. Maybe post a link here and get KHE members to comment. You can de-personalise it to maintain anonymity.
  • Posted by Chris Blackman on Member
    ... and apologies for all the typing mistakes in that last post!

    Val, where's the spell check button?

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