Many people ask how many graphs or charts they should have in their business plans. As with most other business planning questions, the answer is "it depends." This article discusses the key factors influencing the number of graphs and charts to include in your business plan.
To begin, the key point to consider in developing your business plan is the time restraints of your audience. If your audience is a retired angel investor, he may have few obligations and can spend an hour reviewing your business plan. However, the more likely scenario is that a venture capitalist, corporate investor or loan officer will review your plan while sitting at a desk topped with fifty other business plans. As such, it is critical that your plan conveys its key points quickly and easily ? this is where graphs or charts come in.
In determining whether to use a graph or chart, consider the old adage, "a picture is worth a thousand words." The point here is that the picture should save a thousand words. That is, the graph or chart should supplement the text; it should not be explained ad naseum in the text, or that defeats its purpose. Likewise, the graph or chart must be relevant and support the text, rather than detract from it.
In addition to respecting the time constraints of the audience, the business plan must respect the audience's energy level. That is, after reading seven business plans, an investor is likely to skip a page with 400 words of straight text. Even if no charts are applicable to support the page, Growthink suggests using appropriate spacing and/or callout boxes (e.g., key text phrases highlighted in boxes) to make the page more readable.
Clearly, technical drawings and operational designs need to be visually presented in the business plan. Without them, huge volumes of text are often needed to explain relatively simple processes. Importantly, when the text references these charts, the charts should be easily accessible. That is, the chart should be on the same page as the text, rather than forcing the audience to continually turn to an appendix. If the chart is referenced on numerous pages, each page should show the piece of the chart that reflects the text, with the full chart appearing only once in the plan.
Finally, if the business plan is being presented to one or few investors, the amount of graphs and charts should reflect the wants, needs and sophistication of those few readers. For instance, if the plan is being presented only to strategic investors who understand the market, more graphs may be appropriate to convey information for which these investors already have background knowledge.
Conversely, always keep in mind that the plan is not a slide presentation, and too many graphs and charts may position the company as one that is too lazy to complete the process of developing a formal business plan.
To summarize, the amount of charts and graphs used in the business plan must reflect the audience for the plan; an audience that is usually time and energy constrained. The charts and graphs must complement the text, enable the audience to quickly and easily digest the information, and as always, interest the audience in taking the next step (e.g., scheduling an in-person meeting) in the investment process.
As President of growthink business plans, Dave Lavinsky has helped the company become one of the premier business plan development firms. Since its inception, Growthink has developed over 200 business plans. Growthink clients have collectively raised over $750 million in financing, launched numerous new product and service lines and gained competitive advantage and market share.
detailed home cleaning Park Ridge ..Motivational author and speaker Jim Rohn says that for a... Read More
It's a commonly quoted statistic: 80% of all small businesses... Read More
You bet a name is important. Many small business owners... Read More
Paper Shredding Business Opportunities are blossoming up everywhere because in... Read More
Starting the blind cleaning business is one of the best... Read More
Announcements can be handed out as a business cardAnnouncements can... Read More
There are no "rules of thumb" in the pursuit of... Read More
Until the day I learned to play chess I loved... Read More
How do you know when an alliance needs to be... Read More
When do you need to get more involved with the... Read More
As you reflect on this year and prepare for next... Read More
It is imperative to have your business legally prepared. How... Read More
You've heard marketing and advertising gurus quip, "Sell the sizzle,... Read More
Over the years I heard the best way to learn... Read More
Nothing can drive a business down faster than customers who... Read More
By outsourcing to skilled professionals you'll be able to grow... Read More
Competition in the business world is often viewed as a... Read More
When working from home, it is usual to find that... Read More
The life cycle of the typical small business is short... Read More
How do we keep track of our business deals?If you... Read More
What's your job profitability? I meet with business owners every... Read More
When is the Chamber ideal for your business?Joining a Chamber... Read More
There are several well-known truck washes in the Great State... Read More
Here are seven ways for owners of small businesses to... Read More
Now that winter has passed, the annual ritual of spring... Read More
express cleaning service Des Plaines ..Most business owners know when they need an accountant, but... Read More
Concrete Roof Tile Business: During the 2004 summer season, storms... Read More
The success of your business depends on your ability to... Read More
TRUTH IN THE LAWN MOWING INDUSTRYWe do not wish to... Read More
If you run a pressure washer business you need complete... Read More
Are you a home or small business owner and you're... Read More
I ran a franchise company for many years, a car... Read More
As an Investment Representative you've worked hard to build trust... Read More
Today is a Red Letter Day! It's special because today... Read More
Whether it has been thrust upon you by external market... Read More
If you are thinking of turning your current into a... Read More
At one point or another, almost every business runs short... Read More
The life cycle of the typical small business is short... Read More
Your product is dying. With the same inevitability that we... Read More
One of the best marketing strategies a business or organization... Read More
Whether you operate a chain of restaurants, a mom-and-pop convenience... Read More
The employer / employee relations environment has been constantly evolving... Read More
Your business is only as good as the number of... Read More
You have spent considerable time pulling your business plan together,... Read More
A tongue-in-cheek look at the skills required to operate a... Read More
Congratulations, you are starting a small business! You are taking... Read More
Having their own business is something many millions of people... Read More
One of the primary concerns all small businesses have is... Read More
As I am preparing for my attendance to the CoachVille's... Read More
When small businesses fail, the wreckage is often assigned to... Read More
Small Business |