The Business Plan is often thought of as the single most important document for an entrepreneur to deliver in order to document and explain the business idea. It can be used to attract investment, plan for hiring, and meticulously plot out every step on the way to launching and scaling that new business. It is the secret game plan for going from a great idea to a successful business. So, no Business Plan can be too long or detailed, right?
While this post is in no way trying to discourage the writing of Business Plans I invite the reader to think a bit about change. Changes in market forces, technology, pricing and costs, in customer needs, and even in customers themselves force changes in our businesses. When adapting to inevitable change, do we have time to stop and carefully update the Business Plan to account for the change and all the ways it impacts the business?
Perhaps there is another document that complements – not replaces – the Business Plan. A document that is easier to read, that can be used to rally the team, to explain the opportunity and idea – and to maintain. The Three Page Business Plan.
The Three Page Business Plan is meant to capture the essential ideas and concepts around the business. As such it is done in short sections that typically contain a few short sentences with supporting bullet points and tables. Following are the sections that should be included:
Identity: A single sentence that defines what the business does and for whom (it is harder than it sounds)
Problem Being Solved: A simple statement of the problem that the business resolves
Solution Overview: What is being offered and a few bullets listing the products or services being offered
Target Market: A statement of who would find value in the solution with bullets for any specific niches
Competition: A list of the types of competition in the market as opposed to a full roster of competitors
Sales Channels: Briefly list the channels such as direct, through distributors, resellers, etc.
Marketing Activities: A gain a list of the types of marketing activities such as social media, conferences, SEO/SEM
Revenue: The revenue model: by purchase, e-commerce, licensing, subscription, etc.
Expenses: List the expenses by category; COGS, SGA, rent, etc; a table works well here
Milestones: Key achievements that will be accomplished in the next full year by quarter
Teams and Key Roles: a brief on organizational structure and personnel who will fill the key roles
Partners and Resources: key partnerships and strategic vendors
The Three Page Business Plan is another tool for the entrepreneur – one that helps to focus, to communicate the business and its place in the market, and to think through all the important aspects of turning an idea into a thriving business.
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