This chapter provided a thorough definition and examination of an effective business plan. The critical factors in planning and the pitfalls to be avoided were discussed. Indicators of these pitfalls and ways to avoid them also were presented. Next, the benefits for both entrepreneurs and financial sources were reviewed. Developing a well- conceived plan was presented from the point of view of the audience for whom the plan is written. The typical six- step reading process of a business plan was presented to help entrepreneurs better understand how to put the business plan together. Ten guidelines in developing a business plan were provided, collated from the advice of experts in venture capital and new- business development. The next section illustrated some of the major questions that must be answered in a complete and thorough business plan. The business plan was outlined, and every major segment was addressed and explained. The chapter then presented some helpful hints for preparing a business plan, along with a self- analysis checklist for doing a careful critique of the plan before it is presented to investors. Finally, the chapter closed with a review of how to present a business plan to an audience of venture capital sources. Some basic presentation tips were listed, together with a discussion of what to expect from the plan evaluator.