Sharpen up your business plan

If you are raising finance for your new venture - whether from a bank or a private investor - you will almost certainly need a business plan.

All too often, though, bank managers and investors see business plans that are long on written ideas, smart pictures and diagrams, but desperately short on financial forecasts.

Bank managers are hardly noted for their flair and invention so don't assume your manager will immediately grasp the sheer brilliance of your idea. He is more likely to want to know if the numbers add up. So the financial section of your plan must be thorough and credible.

People who provide investment for new businesses all read business plans the same way. They look at the 'executive summary' (a one-page outline of the business proposal) first, then they look at the management team, and then they flick to the back to check out the financials. Only if these make sense will they bother to read the rest.