We believe that the best business plans are written as part of searching inquiry conducted with brutal honesty.  Creating a good business plan is more than a marketing effort to raise funds.  It should instead actually be a true planning exercise and, by extension, a thoughtful test of the viability of the business.

Ironically, business plans written in this manner also tend to be the most successful because the integrity of the plan shows through.  Venture investors will reject exaggerated claims and may as a result come to question the business acumen of management.

The following is one way to organize a plan.   This format is probably most appropriate for a company that plans to provide a new technology solution.  It is less appropriate for a bricks-and- mortar business that will provide basic goods or services.  Such businesses do not necessarily solve a problem.

The plan does not necessarily need to be long.   Twenty to thirty pages is about right (not including financials).  It also may not be useful to start by writing the executive summary, which is the most important part of the plan.  It may be better to write the balance of the plan first and then write the executive summary after having gone through that exercise.

I. EXECUTIVE SUMMARY   
II. COMPANY PURPOSE  
III. THE PROBLEM 
IV. THE SOLUTION  
V. WHY NOW  
VI. MARKET SIZE  
VII. COMPETITION  
VIII. PRODUCTS  
IX. BUSINESS MODEL  
X. TEAM  
XI. EXIT STRATEGY  
XII. FINANCIALS

With respect to the last item on the list, financial projections, the key is detail- the more the better.  Any substantial business will have many dozens of revenue and expense items.  Capturing most of them in your financial projections will demonstrate that you are on top of things.  Indeed, your goal should be for your projections to serve as your budget.   The worst thing you can do is simply project straight-line increases in a few revenue and expense items.