Secret tips of business plans that raised over $1 Billion
Date: October 26, 2016
Name: Secret tips of business plans that raised over $1 Billion
Presenter: Wanda Halpert
Great business plans help entrepreneurs obtain financing for their businesses. Moreover, business plans highlight business knowledge and transcends entrepreneurs’ vision. Vancouver Entrepreneurs and Business Builders meetup invites Wanda Halpert, the President of Concord Business Plans, to discuss how to utilize business plans to compete for funding. In this presentation, entrepreneurs will discover ways to produce insightful business plans. Wanda Halpert will reveal what investors are looking for in their eyes of business plans.
Wanda Halpert is the President of Concord Business Plans. She wrote over 550 business plans that have raised over $1 billion of investment capital. Wanda Halpert also prepared intensive market research and marketing plans for entrepreneurs. For over many years, she demonstrated her knowledge and business planning in many industries. She was the chairman of the board for Business Management Forum for over 6 years. She achieved the “Top Market Research Firm” award from BC Business Magazine in 2008.
Wanda Halpert mentions her business started at .COM rush. She had done over 100 types of internal models and saw many different industry trends. By learning the language of each different sectors, Halpert had written over 600 plans.
Halpert believes the hardest part is to write her own business plans. There are tight schedules and certain structures when entrepreneurs write for clients; however, sometimes it is difficult to place the same rules to themselves. It took Halpert 3 months to write her first business plan. She was fortune enough that the right people saw it and hire the right people to complete it. Her business started to launch.
In any business plan, Halpert believes it is important to have the confidential letter as the first page. The tip Halpert suggests is “talk about it, but do not show what it is”. In addition, entrepreneurs need to provide their contact information on the first page.
Follow the confidential page, Halpert provides the highlight page. Highlight page is the summary of the actions for the business plans. Instead of reading the whole business plan, entrepreneurs capture the necessary information on this page. It shows business perspective. Halpert encourages entrepreneurs to show graphs on what investors get if they invest the plan.
Great business plans do not use the default table of content format. Table of content should be market in different ways for different business plans. A typical business plan should open with an introduction, follow by the current situation, then a list of directors, position, social media profile and services. The next section entrepreneurs should provide strategic analysis. This includes market segment, SWOT analysis, and competitive analysis. Entrepreneurs should include the strategic plan that has primary objective and timeline. Afterwards, business plans should have marketing strategy and finance projection. As for the rest, it should be put into appendix section.
Business plans for grant application can be a bit different. Opening should also include contact information and the highlight page. Halpert recommends entrepreneurs to use pictures in executive summary for better result. The business plan includes operation plan, market research, market tactics, and financial section. Halpert emphasizes the key is to tailor each plan to the right audience.
For business plan in technology sector, business plans need to include value projection and milestone achievement. Halpert will also include a deep analysis of market trend and have one-page business plan. The plan should backup with financial. It is beneficial to include company overview that shows who key players are. If there are strategic alliances, value chain, major events or future plans, business plans should include those as well. Halpert shares some companies demand more information, so it is important to understand the audience’s requirement. Halpert suggests entrepreneurs to give company its own chapter in the business plan.
Halpart suggests entrepreneurs not to give the whole business plan to investors at the beginning. Instead, they should show them first page. If they have interest, entrepreneurs will show the rest.
Market research is extremely important. It shows how the sector is growing today. For any technology business plan, Halpart suggests entrepreneurs to include smartphone trend since smartphone is the biggest want in 3rd world country. Market research also includes the growth of spending, target market and distributors.
Market strategy should follow after market research. Marketing plan is important because entrepreneurs might have the best product, but if they do not have a great marketing plan, it is difficult to convince investors how they can get their money back. Halpart encourages entrepreneurs to show pictures and competitive analysis. Moreover, entrepreneurs must remember to include bibliography. Investors are smart, so make sure all statistics are right on.
If entrepreneurs are writing business plan for government, Halpart suggests them to use traditional setup. It is important to figure out what government wants and match everything, including the wording, on the business plan.
To write a great business plan, Halpart have 3 important keys to remember.
- Use suggested format
- Show diagrams as much as possible
- All about content
Halpart likes to use spiral binding because it is easier for investors to read and fold down. She feels she is like a translator. She needs to translate PHD in lab to investors who are not PHD but who have the money. The important key is to make the business plan easy to understand. Pictures help investors understand the plan faster.
Pitch deck is another way to present business plan. Halpart provides some recommendation.
- Give headline first
- Identify the situation
- Show statistics
- Provide diagrams on options and highlight the hotspot
- Provide business model, marketing plan, market size and strategic review
Pitch deck should be less than 10 slides. It is important to summarize a timeline on how business will grow. Sometime, investors will question if entrepreneurs put their own money in the business plan. Therefore, business plan should be plausible and exciting. Always bring something new to the table and let them feel they are already got their money back.
The second important key is to phrase the words that is positive. Never write in negative. Entrepreneurs should always write what they can do not what they cannot do.
For advanced technology sector, entrepreneurs must use the right words that describe who they are. Business plan should show advantage, sectors involvement, current operation, and company overview. For products and services, business plans must include detail description and who to call. If there is positive publicity, business plan should include it. For stocks, entrepreneurs can use similar style. Moreover, business plans should show the obligation and global growth. Since most investors prefer business plans in digital format, Halpart recommends ISSUU to show business plan online.
“Even if it is creative, you still follow the classical”
Questions and answers
Halpart does her own research. The turnaround for the 1st draft of any business plan is 2 weeks. There is no short cut. Halpart emphasizes every business plan must focus on their primary audience. The projection years for business plan can be vary. It depends on different sectors. Halpart believes technology plan should have 3-years projection and real estates should have 5-years projection.
Every business plan should always review annually. Appendix section is the best sector for entrepreneurs to show off their contracts that add values to business. For government grant, there are specific requirements. Halpart suggests entrepreneurs to use the same word choice and look for a checklist.
Halpart shows the basic formula for standard business plan.
- Product description
- Market research
- Marketing plan
- Revenue
Market research includes the proof the growth of sales. Entrepreneurs should pick the most optimistic ones. The marketing plan should include online and offline. Revenue links with financial projection because marketing plan is the revenue generator.