Nobody should try writing a business plan without in-depth knowledge of the work process involved. Whatever the goal of the business plan may be (capital raising from private angels / VC’s / banks or even just a plan of action) it still needs to be focused and professional so that at the end of the process the person reading the plan has a clear understanding regarding the essence of activities, goals and aspirations. The writing must be fluent and clear. Take into consideration that the person reading your plan is intelligent enough to notice a “shmir” when he sees one.

Don’t be afraid of showing off your idea to people who might steal it. This is especially relevant to people approaching venture capitalists. The role of a VC is to locate entrepreneurs with unique ideas, assessing the potential of the business and deciding whether to give it the financial push it needs.

Throughout my years as a strategic consultant and “start-up accelerator” I have always recommended entrepreneurs to take the basis of the idea and set up a few meetings with people they think highly of. Prior to investing needless efforts in an attempt to build a business that might not have true potential, it is imperative to get initial feedback. Business model validation is an integral part of building the entrepreneurs self-esteem and may help raise issues not thought of when the process began.

That’s the reason that before starting the actual work process, consult with people you believe in. Gather every piece of information you can find regarding the market, the technology, the operations and financial needs of the business and only then, when you feel knowledgeable, start working. Rest assured that once the plan is completed you will have in-depth knowledge of how the business needs to operate in every phase of its initial life cycle.

Every starting entrepreneur thinks that the sole goal of a business plan is to raise money from investors. The concept of “give me money and I’ll make it work” is essentially wrong. Investors do not throw their money away on promises, but rather check every aspect of the business before deciding whether it is worthwhile to even start the process. To convince a potential investor that your business does have potential you must know the material blind folded and be ready to answer every question. Do your homework and don’t get caught with your pants down.

In the following series of posts I will walk you through the steps of creating a solid, professional business plan that can withstand even the harshest criticism. Understand that a business plan is not written from start to finish, but rather data is learned along the way and then re-issued into the relevant places. Every section of the plan is intended to fully explain one single issue, from macro to micro and finally provide a recommendation or solution. For demonstration purposes only I have decided to use as an example a company (named “Kadooki”) that wishes to compete in the field of online advertising, nevertheless, it is just an example.

A solid business plan encompasses all of the factors directly influencing the core activity of the business, from the original idea through the state of the market and its penetration strategy, from the technological aspect to milestones and financials, allowing an investor to get a clear view of what is offered .

The process begins, or ends, with an executive summary.