The Most-Asked Questions by Outside Audiences
Lenders and prospective investors reading a business or marketing plan that is used to seek new capital are probably the toughest audiences to satisfy. Their most-asked questions include the following:
1. Is the business or marketing idea valid?
2. Is there something unique or distinctive about the product or service that separates it from substitutes and competitors?
3. Is there a clear market for the product or service?
4. Are the financial projections realistic and healthy?
5. Are the key management and technical personnel capable, and do they have a track record in the industry in which they must compete?
6. Does the plan clearly describe how those providing capital will get their money back and make a profit?
Rhonda Abrams, author of The Successful Business Plan, observes, "Although you may spend five months proparing your plan, the cold, hard fact is that an investor or lender can dismiss it in less than five minutes. If you don't make a positive impression in those critical first five minutes, your plan will be rejected." While her comments apply to plans seeking to raise capital, the first five questions listed above apply equally well to plans for internal audiences.