Have a plan.

Last time, we talked about being prepared. An extension of that attitude and orientation is our next tip. To raise venture capital, you must have a business plan. In that plan, you must address certain key issues, directly and without fudging or fooling yourself.

Your plan need not be long and detailed. It is not meant to be a full operational plan for running the business. By the time you raise your venture capital, any number of variables may have changed, and if your plan does not change in response, you are wasting your time. and probably someone else’s money.

Fortunately, there are literally thousands of examples available on the web. You can start with the SBA website, where there is good advice, as well as many other resources for small businesses. Many companies offer software packages designed to make the process easier. I have not used them, but it’s safe to say that fancy software is no substitute for serious thought. By all means use them, if it helps breaking down writer’s block, or in preparing projections and performance. Just don’t expect miracles.

Here’s what your plan must have at a minimum...