I have long recognized the value of implementing the Six P’s in my daily life. Proper, Prior, Planning, Prevents, Poor, Performance! The Ernst & Young Business Plan Guide is one way to approach Planning in the business aspects of your life.
In the PREFACE of the Business Plan Guide we learn that the book is intended for those ”who are in the planning stages of starting, expanding, or acquiring a business.” A business plan generally serves a tri-fold purpose; (1) to help the business raise funds, (2) to help the business plan for the future, and (3) to assess how the business is moving ahead. The Business Plan Guide is a good primer for creating a business plan that addresses each of those three purposes.
The Business Plan Guide has three characteristics that make it particularly useful. First, it is very clearly written. The authors use everyday language and do not get overly bogged down in “biz-speak” or jargon. Second, it explains why certain information is included in a business plan. The authors detail how the business can present that information to its best advantage. Third, it gives clear, easy to follow examples. The authors evaluate each example and point out its strengths and weaknesses.
The Business Plan Guide contains 15 information-rich chapters.
Chapter 1 explains just what a business plan is and what functions it serves. It then goes on to describe why every business enterprise needs one.
Chapter 2 details who reads business plans and how their perspectives differ. They include some insightful description on how financial backers make their decisions.
Chapter 3 describes the legal forms of business such as sole proprietorships, partnerships, and corporations. The authors explain the control, liability, and tax implications of each legal business entity.
Chapter 4 explains, in just two pages, why a business plan should have a table of contents and how detailed it should be.
Chapter 5 discusses the value and structure of an executive summary. This reiterates one of the basic themes of public speaking or effective writing. “Tell ‘em what you are going to tell ‘em, tell ‘em, then tell ‘em what you just told ‘em.”
Chapter 6 demonstrates how to craft an effective company description that provides an adequate overview of the business – and its major activities.
Chapter 7 is somewhat unique in that it suggests including the business’ products and services in the plan. The authors explain why including this type of information strengthens the plan and sets the groundwork for subsequent chapters.
Chapter 8 gets to the very heart of a business plan – the marketing plan. This section details how the business will handle the market environment to facilitate success.
Chapter 9 gets to the essential aspect of how the business will create its products or develop its services. Here the business plan has to tread a fine line between the complexity demanded of internal planning and the clarity required by external readers.
Chapter 10 lays out the organizational makeup and management schema. [Many external readers go directly from the executive summary to this section. If they are not convinced of viable management – they generally read no further.]
Chapter 11 explains why it is important to apply a time sequence to the business. The best laid plans often fail in execution because of poorly considered time constraints for major milestones.
Chapter 12 paints a picture of the how the business plan can tell the reader what the business requires. There is little sense in putting a business plan before potential backers if the business does not clearly state what it is looking for.
Chapter 13 is a most critical area. Here the business lays out its financial plan. This section must present a detailed plan that is both comprehensive and credible. [If you want to get into an investor’s wallet – this section had best be airtight.]
Chapter 14 specifies some of the attachments that can accompany a business plan. The authors show why the inclusion of competitive analyses, resumes, teaming agreements, and the like can make the business plan more powerful.
Chapter 15 provides more food for thought. Issues such as financing, staffing, and even liquidation are briefly discussed.
I have some associates who have decided not to start a business after reading this book. That decision alone made their $14.95 purchase of The Ernst & Young Business Plan Guide a wise investment.
Are you thinking of starting a business? Help yourself create an environment for success. Read The Ernst & Young Business Plan Guide.
[Notes:
1. When this was written, author Jay Bornstein was a tax partner while Brian Ford was an audit partner at E&Y. Eric Siegel was a consultant and also acted as a lecturer at the Wharton School of the University of Pennsylvania. He then served as a Director of NCO Group Inc.
2. This is a 1993 publication. Some sections are a bit dated. For example, there is no mention of the now popular Limited Liability Company (LLC) form of business.]
The Ernst & Young Business Plan Guide
Second Edition, 1993
Eric S. Seigel, Brian R. Ford, Jay M. Bornstein
John Wiley & Sons, Inc., New York
ISBN 0-471-57826-6
© 2001
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