Investors use a start-up's business plan to answer questions like these (what I think is most important is in BOLD:

1. Can you get your product to market? Can you make your company profitable?
   • Is your management team strong and experienced? Investors bet on the team (which they will understand) sooner than the technology (which they won't).
   • Have you located a market niche?
   • Do you understand the competition and what it takes to win a share of the market?
   • Does your product set up barriers to your competitors' entering the market?
   • Are you able to overcome barriers set up by the competition?
2. Are you competent with money?
   • Where have you gotten it before?
   • Do you know where to get it now?
   • How much money are you looking for? And what portion of the company will you trade to get it? Investors will want to know your valuation, what you consider your company to be worth.
   • How will you use it?
   • Will you use it wisely?
   • What other assets do you have (e.g. intellectual property, computers, machine tools, physical plant)?
   • Do you keep in touch with your investors?
   • Do you know when you will break even, and under what conditions? This gives you some idea how much cash you need to raise, how long the cash must last, and how long you can afford to wait for it.
   • Are you prepared for life with no investment at all?
   • Have you considered what's most likely to happen?
3. How strong is your product?
   • Does it WORK?
   • Is it SAFE?
   • Have you fully tested it?
   • Do you have drawings?
   • Do you have parts lists?
   • Do you have relationships with vendors? Are the relationships contractual?
   • Do you know how to manufacture it?
   • Are you in compliance with government regulations and industry standards?
   • When you describe the uniqueness of your technology, this is where you include testimonials, test results, and slick graphics. :-)
4. Will you be visible?
   • Do you have a company mission?
   • Do you have a marketing strategy?
   • Can you demonstrate passion? Are you?
   • Do you have customers already?
   • Do you have a plan for customer service?
   • Can you demonstrate and measure quality?
   • Are you participating in business or trade organizations?
5. How strong is your staff?
   • Are they loyal?
   • Do they have a sense of urgency?
   • Do you have a plan for hiring? training? mentoring?
   • Do you have an exit strategy for yourself or your partners?

Generic Example

OUR COMPANY LTD
Summary Business Plan
(date)

MANAGEMENT:

• (Number One) , CEO, Founder
• (Number Two) , SVP, Founder
• (Number Three), Chief Operating Officer & CFO
• (Number Four) , VP Business Development
• (Number Five) , Chief Engineer

INDUSTRY:
(Type of technology) systems for (applications) in (markets)

NUMBER OF EMPLOYEES:

• Management:
• Engineering:
• Manufacturing:
• Administration:
• Marketing:
• Total:

BANK: [...name of bank...]

AMOUNT OF FINANCING SOUGHT: [...$ amount...]

TYPE OF FINANCING SOUGHT: (e.g. Seed, Early Stage, Growth Stage)

TOTAL EXTERNAL CAPITAL INVESTED: [...$ amount...]

LAW FIRMS: [...name(s) of firm(s)...]

USE OF FUNDS: (examples)

• Expansion of existing markets,
• New market development,
• Branding, Customer support,
• Broadening IP protection

EXECUTIVE SUMMARY

BUSINESS DESCRIPTION:

Our Company Ltd. manufactures leading-edge (type of technology), providing (services) that offer significant competitive advantages over existing (similar technologies) in performance, cost-effectiveness, versatility, and worker safety. Customers include (current and potential customers).

COMPANY BACKGROUND:

Our Company Ltd. was formed in (year) as a (state, type of company e.g. LLC) by (Number One) and (Number Two) to develop and market its patented (tradename) technology. Leveraging (any cooperative agreements or industrial partnerships), the Company demonstrated multiple prototypes under (various) contracts worth (various $ amounts) from (various customers). (Partner Company A) won a contract from (Customer Company A) with a bid featuring Our Company (products). Our Company is also well-positioned to win a contract worth (some $ amount) from (Customer Company B).

FINANCIAL PROJECTIONS (dollars in millions)

FISCAL YEAR	1998	1999	2000	2001	2002	2003
REVENUE	$ 0.1	$ 2.2	$ 12.4	$ 20.4	$ 31.8	$ 50.9
EBIT	(0.5)	(0.7)	0.6	1.6	6.1	13.3

FINANCIAL SUMMARY

Baseline Business Plan Update: May 1999 (dollars in thousands)

Income Statement Summary	1995	1996	1997	1998	1999	2000	2001	2002	2003
Total Orders Received	-	52	487	87	12731	17468	30875	43425	60550
Total Backlog	-	-	-	17	10546	15620	26052	37637	47307
Total Sales Revenue	-	52	487	70	2202	12394	20443	31840	50880
Gross Profit	-	50	305	70	1209	5227	9247	16056	25759
Gross Margin (%)	0	96	63	100	55	42	45	50	51
EBIT	(120)	(165)	(475)	(471)	(716)	618	1612	6088	13333
Return on Sales (%)	NM	-317	-98	-673	-33	5	8	19	26
Balance Sheet Summary
Current Assets	2	1	5	168	1070	6668	7856	12079	19440
Total Assets	110	96	97	256	1575	8001	9852	14002	25196
Current Liabilities	78	105	151	193	600	1638	2349	3063	5026
Net Members Equity	(25)	(169)	(466)	(899)	(222)	5549	6396	9939	17677
Operating Cash Flow	16	(44)	(167)	(177)	(689)	(1354)	630	2824	6976
Capital Expenditures	(117)	(1)	(9)	(14)	(493)	(1350)	(1600)	(1100)	(5350)
Financing Activities:
Issuance of Stock	101	34	192	60	1492	5388	-	-	-
Net Proceeds (payments) on Debt	2	10	(12)	286	135	393	293	(107)	1493
Estimated Valuation				3236	5694	16850	25400
Valuation at 15 times net income								53150	116100
Price per share			1.50	1.50	1.87	4.02	6.06	12.67	27.68
Annualized Return, 1999 Investment (%)						115	112	193	345
Annualized Return, 2000 Investment (%)							51	108	196

TECHNOLOGY:

(Tradename), the Company's patented (technology), offers (features) required for (applications). Our Company recently obtained a royalty-free nonexclusive license for (marketing other related technologies). Our Company has won contract awards leading to product delivery and demonstrations for the (various) markets.

MARKETS:

Our Company's technologies offer substantial competitive advantages to commercial and government customers in a variety of markets and applications. Our Company systems can deliver up to order of magnitude improvements in throughput, downtime reduction, maintenance quality, and personnel safety expenses. Targeted markets include (list or markets and associated applications). Leveraging strong relationships with (various industrial partners), Our Company is currently focused on these primary applications: (list of applications).

THE COMPANY

• (Number One) and (Number Two) founded Our Company in (year) to take advantage of customer interest in the patented (tradename) technology. (Number Three), COO and CFO, joined in (year). Together with (Number Five), engineer, they were able to leverage a small amount of friends and family capital to win contracts, generate commercial interest, and substantially complete technology development. Highlights of the first three years are as follows:
• Obtained a (partnership agreement) with (government partner) in (year). Our Company continued to refine (technology) under this agreement until (year).
• Won (type) contracts from (Customer Company A and/or B) for (amount) to demonstrate the suitability of the (tradename) technology for (customer-specific applications). These contracts were obtained in competition with the world's most prominent and experienced (similar technology) companies (e.g. list).
• Teamed with (Partner Company A) to pursue a series of contract opportunities at (various locations). This teaming relationship led directly to (contract award).
• Using (specific example of technology), Our Company has positioned the (tradename) technology as the leading (type of technology) system to (perform certain tasks) for (certain potential customers).
• Developed the only (specific example of technology, and its unique capabilities) for (certain customer-specific applications).
• Won (type) contracts from (Customer Company C) for (amount) to demonstrate the suitability of the (tradename) technology for (customer-specific applications). These contracts were obtained in competition with the world's most prominent and experienced (similar technology) companies (e.g. list).

[...table of opportunities...]

MANAGEMENT:

(Number One) designed and developed the (tradename) technology, obtaining a patent in (year). In (year) he formed Our Company LLC (now Ltd.) with (Number Two). The current management team includes:

• (Number One) , (age, title, background, accomplishments)
• (Number Two) , (age, title, background, accomplishments)
• (Number Three), (age, title, background, accomplishments)
• (Number Four) , (age, title, background, accomplishments)

• VP Engineering. Our company is currently recruiting for a VP Engineering to help us build and deploy our engineering team, support the execution of our (contracts), oversee the expansion of our portfolio, and lead the development of systems for new applications and markets. Readers of this business summary who know exceptionally qualified and motivated individuals suitable for the position are respectfully encouraged to submit their recommendations. Candidates need a Master’s or Doctoral degree in Mechanical Engineering and 15+ years of industrial and government contracting experience, with 5 or more of those years as engineering leader.
• (Number Five), (age, title, background, accomplishments)

DIRECTORS AND ADVISORS:

(...list, including age, title, background, accomplishments, and type of direction given...)

THE MARKET:

(...background of market, showing knowledge of specific opportunities and realistic projections of near-term available contract money...)

(...detailed description of markets and applications for which Our Company’s technology is suitable...)

THE TECHNOLOGY:

(...detailed description of Our Company’s technology, including patents realized and pending, and any appropriate features...)

(...description of competitor technologies, indicating "flaws" overcome by Our Company’s technology...)

NOTE
CAGR = "capital growth"
EBIT = "earnings before income taxes"
EVA = "economic value added"
ROI = "return on investment"
TCO = "total cost of ownership"

What You Can Do

1. Recognize your limitations. The sample business plan given above is for a growth-stage company. If you're seeking seed funding you need much less financial information.
2. Know who you want to give your business plan to. The due diligence exercise is much more, well, diligent for a venture capital group than for a single angel investor. The level of detail you present in the business plan should reflect the interests of your target audience.
3. Recognize your strengths. If you are stronger (for instance) in technology than in business experience, emphasize the technology. There's no fixed length for any section of your plan. Every company is different.

References

Entrepreneur Magazine
Inc Magazine
simple business plan
start-up info
definitions of development stages
National Organization of Business Opportunity Seekers
Women's Wire instructions -- interactive, but requires login/password