How to Write a Business Plan - Bootstrapping Edition

Ever since writing my first business plan I've had misgivings about the traditional business plan writing process. It took awhile to realize why, but eventually it dawned on me. As an entrepreneur I wanted to write action plans, not presentation pieces.

Whether in business school or in business books, the goal of most how to write a business plan training is to raise funds from investors or bankers. For example, today's tech startup culture is completely geared toward attracting capital from outfits like Madrona Venture Group or Kleiner Perkins Caufield & Byers. This is fine if you desire to create the next IPO or pray for Facebook or Google to acquire your startup. You need an in-depth business plan that demonstrates how your company will return a six-fold return on investment.

What if you're in business for yourself? Do you need convincing? Or have you already made-up your mind? Flipping a business or going public was not my goal. I was bootstrapping. My only investor, employee and shareholder was me. My objective? Use my brains and wit to support my business with the revenue it earned and, in the process, build personal wealth. I did not need a business plan to convince me what a great idea I had. I needed a short, sober action plan to push me forward toward my goals.

How did I write my bootstrapping business plan?

It was quite shorter than anything my old college professors would have praised. My focus was on the operations plan and the marketing plan, the getting things done sections of any business plan.

Operation - What would I do and how would I do it? Two pages.

Marketing - To whom would I sell and how? Three pages.

My bootstrapper business plan had three more brief sections.

Finance - What would it take to make a profit or how long would I last before going broke? This included modest revenue projections, Scrooge-like expense budgets, monthly living expenses and available cash savings.  One page.

Market - Yes, there was a need for my expertise and people or companies willing to pay for the services I offered. My big list of prospects was already in an Excel spreadsheet, one I knew intimately; there was no need to paste it into my business plan. One-half page.

Competitors - Yes, I had competitors who, if they happened to notice my fledgling company, would briefly gloat at my demise. No, they did not have an impenetrable chokehold on the marketplace. That's all I needed to know. One-half page.

On the cover I printed my business name and my elevator speech. I didn't bother writing an executive summary that only I would read. One page.

That's it, eight whole pages.

I'm not saying that my bootstrapper business plan is for everyone. You should compare it to Trump University's free How to Write a Business Plan course. Then, create a plan that is right for you. With a little thought and planning. you can write a business plan that will keep you focused on your goals and objectives.

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