Your business plan can often make the difference between between funding and rejection. So what exactly should it look like?

Make it short — Intel's business plan back in 1967 was only four pages long. This might be a bit aggressive, but if you can say it in 20 pages, why take 200? Remember, the VCs will never pore over the plan with the same energy as you used to write it.

Basic contents — every business plan should tell the reader what need your product/service will fulfill, why this is a growing market, how you will succeed, who is on your team, who is the competition, why you will beat them, how much you will make, and how much it will cost to get there.

Let's consider each of these points in more detail.

Need — your product must fill a real need — this is fundamental but often forgotten. Why would anyone buy what you are making?

Market — this should exist and be projected to grow rapidly (typically 30 percent plus per year). It's also okay if the overall market grows slowly, but your segment will grow fast

How you will succeed — Very important! How will you build your product? Does it require research or invention? How will you market and sell it?

Team — biographies of the key team are vital. Do they show why this is the team to solve the targeted problem? If you have gaps, it pays to acknowledge these — e.g. "we need a Finance Director" — rather than to ignore them.

Competition — be as honest and exhaustive as possible. The more competition you disclose, and the more detail of which you are aware, the more it is apparent you understand the market.

How you win — technological, selling, and other advantages. This should cover both initial and future products.

How much will it cost — don't forget to include both selling and development costs — people, equipment, travel, etc. This section should include "standard financials" — an income statement, balance sheet and cash flow for the next 6-8 quarters, and the next four or five years.

If other entrepreneurs' experience is anything to go by, you will learn a lot just by putting such a plan together. Good luck!

Send us your business plan on your early-stage opportunity.

POND'S PORTFOLIO >>