Projections are important not for their actual numbers as much as for their presentation of drivers, relationships between growth and spending, key spending priorities, sales aspirations, and assumptions related to cash flow. This process is called the business plan cycle. In fact, it can be much easier to start with a simple, one-page business plan —what we call a Lean Plan—and then come back and build a slightly longer, more detailed business plan later.
Instead, just include a short statement indicating how much money you need to raise. Distribution is how you will get your product into the hands of your customers.
Business plan bonus: Tips to stand out Investors have little patience for badly written documents.
While costs are easier to predict than sales, both must be included. Key assumptions and risks Finally, your business plan should detail the key assumptions you have made that are important for your businesses success.
When you are reviewing your business plan to cover the next stages, it's important to be clear on how you will allocate your resources to make your strategy work.
The problem and solution Start the opportunity chapter by describing the problem that you are solving for your customers. Investors will want to see that you understand what needs to happen to make your plans a reality and that you are working on a realistic schedule. Use half of what you think is reasonable.
To be honest, some investors like to see founders living on ramen and losing their families. Here are a few common distribution models that you may consider for your business: Direct distribution Selling directly to consumers is by far the most simple and most profitable option.