Having screened out the business plans that didn’t tell the right stories in both the marketing section and the organization section, there is only one more section to go: the place where everything in the marketing and organization sections gets translated into dollars. Finally, we are at the financial section.
It is easier to see now why the analysis of the business plan was done in the sequence order described. The marketing section provided the context for the organization section. Then, taken together, the marketing section and the organization section provided the context for the financial section. The latter section is where the logic of the two preceding sections plays out in financial terms.
Put simply, if the business is to receive money from an investor, the investor has to write a check. Before the investor will write that check, he needs to be convinced of four things: (1) the marketing plan is sound, (2) the organization plan deploys personnel in a way that will support the marketing plan, (3) the financial plan deploys financial resources in a way that will support the first two plans, (4) the investor will realize the desired rate of return on his investment.
If the investor is not convinced of the first three things, he knows that he will not likely achieve the fourth. Ergo, there will be no check written.
It is easier to see now why the analysis of the business plan was done in the sequence order described. The marketing section provided the context for the organization section. Then, taken together, the marketing section and the organization section provided the context for the financial section. The latter section is where the logic of the two preceding sections plays out in financial terms.
Put simply, if the business is to receive money from an investor, the investor has to write a check. Before the investor will write that check, he needs to be convinced of four things: (1) the marketing plan is sound, (2) the organization plan deploys personnel in a way that will support the marketing plan, (3) the financial plan deploys financial resources in a way that will support the first two plans, (4) the investor will realize the desired rate of return on his investment.
If the investor is not convinced of the first three things, he knows that he will not likely achieve the fourth. Ergo, there will be no check written.
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