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The Business Plan
We will progress through the sections in the order that they typically appear, but keep in mind that you
can work on the sections in any order that you wish.
Exhibit 14.2 Business plan outline.
The Cover
The cover of the plan should include the following information: company name, tagline, contact
person and address, phone, fax, e-mail address, date, disclaimer, and copy number (see Exhibit 14.3).
Most of the information is self-explanatory, but a few things should be pointed out. First, the contact
person for a new venture should be the president or another founding team member. I have seen some
business plans that failed to have the contact person‟s name, e-mail address, and phone number on the
cover. Imagine the frustration of an excited potential investor who can‟t find out how to contact the
entrepreneur to gain more information. More often than not, that plan will end up in the rejected pile.
Second, business plans should have a disclaimer along these lines:
This business plan has been submitted on a confidential basis solely to selected, highly qualified
investors. The recipient should not reproduce this plan, nor distribute it to others without
permission. Please return this copy if you do not wish to invest in the company.
Controlling distribution is particularly important when seeking investment, especially if you do not
want to violate Regulation D of the Securities and Exchange Commission, which specifies that you
may solicit only qualified investors (high-net-worth and high-income individuals).
The cover should also have a line specifying the copy number. For example, you will often see on
one of the bottom corners of the cover a line that says something like “Copy 1 of 5 copies.”
Entrepreneurs should keep a log of who has copies so that they can control for unexpected
distribution.