Business Plans: What is the Best Format? "Don't try to be smarter than competitors. Competent firms will be working just as hard to be smarter than you. The trick is to have no competitors. A firm's goal should be to differentiate its product and service from those offered by others, so targeted clients will seek it out even when lesser substitutes are available." Warren Buffett -- CEO, Berkshire Hathaway "If you are to successfully compete in the future, you must lead the evolution of your industry and dominate emerging opportunities. To create the future, you must create your own road map... a map that makes a difference." Gary Hamel & C.K. Prahalad -- Competing for the Future

In Insight, we will attempt to explore emerging issues, present our views on strategy, innnovation and marketing and provide practical suggestions and tips. Our first topic is one of a practical nature -- Business Plans: What is the Best Format? Future subjects we will explore include.... Best Practices in Innovation and New Service Development; Marketing as "R&D" in Professional Service Firms; Understanding the Animal Kingdom: Do You Know Your Customer Species?; and An Executives Guide to the Internet. Business Plans: What is the Best Format? There are virtually thousands of potential business plan formats one can choose from when embarking on the development of a strategic business plan. Looking for the one "best plan" format, however, is like asking, What is the perfect wine to serve at a dinner party? The answer depends on a variety of factors, including: the reason for the party; who the guests are and what they like; what food is being serving; the budget; and the setting. Business plans are no different - in that a number of issues drive what format and style of business plan you choose to "serve." In theory, there are good and bad business plans and formats - but "good" is clearly in the eye of the beholder. The key measures of a good, mediocre or bad plan include: Whether the business concept or strategy is "sold" to the target audience; If the "basic nature" of the plan is actually implemented; and the results achieved. In other words, a well-written plan with a breakthrough strategy is worthless if nothing happens. As such, the keys to developing a successful business plan are: 1) Understanding the purpose of the plan; 2) The intended audience and their needs; 3) The nature and environment of the business, new concept or product/service idea; and 4) The presentation format and environment. Examples of each include - 1. Understanding the purpose of the plan: Obtain capital/financing "Sell" a business or product/service idea Gain agreement on a growth strategy for an existing business Make a case for a merger, acquisition or alliance 2. The intended audience and their needs: Venture capitalist - strength of management team, ability to implement business concept and mid- to long-term return on investment Corporate management/executives - level of investment required relative to the existing business model and other alternatives Self - clarify business concept and strategy before launching new business 3. The nature and environment of the business, new concept or product/service idea: Existing highly successful company and management team Troubled or company facing increasing competition and changing industry forces Slow-moving and conservative company Start-up business in an exploding but risky market Inventor/idea-type trying to sell a unique business or product idea to a company with whom person has no relations New corporate leadership or existing leadership wishing to leave a legacy 4. The presentation format, environment and preferences of audience: One-on-one casual meeting Formal multi-media presentation to large group No presentation, written document only Multiple meetings requiring different formats and approaches Short, high-level presentation with lots of graphics Strong focus on the financial aspects and projections Once the ultimate purpose of the plan, the audience and environment are understood - you can then build the plan contents, format and emphasis around the key issues that will increase your chance of achieving the intended objectives. In the resources section we've provided a description of potential Business Plan Formats and Content (coming soon). Select the appropriate elements that meet your objectives and then develop the initial table of contents and outline of the plan. Now the hard work begins - good luck. Finally, it is important to remember that a written business plan or presentation is the outcome of a planning or strategic thinking process. What generally convinces lenders, investors, venture capitalists and corporate executives to "invest" in a business, concept or strategy is the quality and integrity of the people and thinking behind the plan. The focus of your planning efforts should not be on the plan itself - but instead on research, thinking, testing ideas and more thinking that result in a winning strategy!. Create the future!