 |
How to Use Graphs and Charts in Your Business Plan
Author: Rahul Chauhan  | Posted: 29-03-2008 | Comments: 0 | Views: 153 | Rating: (156)  (?) 
Many people ask how many graphs or charts they should have in their business plans. As with most other business planning questions, the answer is “it depends”. This article discusses the key factors influencing the number of graphs and charts to include in your business plan.
To begin, the key point to consider in developing your business plan is the time restraints of your audience. If your audience is a retired angel investor, he may have few obligations and can spend an hour reviewing your business plan. However, the more likely scenario is that a venture capitalist, corporate investor or loan officer will review your plan while sitting at a desk topped with fifty other business plans. As such, it is critical that your plan conveys its key points quickly and easily – this is where graphs or charts come in.
In determining whether to use a graph or chart, consider the old adage, “a picture is worth a thousand words.” The point here is that the picture should save a thousand words. That is, the graph or chart should supplement the text; it should not be explained ad museum in the text, or that defeats its purpose. Likewise, the graph or chart must be relevant and support the text, rather than detract from it.
In addition to respecting the time constraints of the audience, the business plan must respect the audience’s energy level. That is, after reading seven business plans, an investor is likely to skip a page with 400 words of straight text. Even if no charts are applicable to support the page, Growthink suggests using appropriate spacing and/or callout boxes (e.g., key text phrases highlighted in boxes) to make the page more readable.
Clearly, technical drawings and operational designs need to be visually presented in the business plan. Without them, huge volumes of text are often needed to explain relatively simple processes. Importantly, when the text references these charts, the charts should be easily accessible. That is, the chart should be on the same page as the text, rather than forcing the audience to continually turn to an appendix. If the chart is referenced on numerous pages, each page should show the piece of the chart that reflects the text, with the full chart appearing only once in the plan.
Finally, if the business plan is being presented to one or few investors, the amount of graphs and charts should reflect the wants, needs and sophistication of those few readers. For instance, if the plan is being presented only to strategic investors who understand the market, more graphs may be appropriate to convey information for which these investors already have background knowledge.
Conversely, always keep in mind that the plan is not a slide presentation, and too many graphs and charts may position the company as one that is too lazy to complete the process of developing a formal business plan.
To summarize, the amount of charts and graphs used in the business plan must reflect the audience for the plan; an audience that is usually time and energy constrained. The charts and graphs must complement the text, enable the audience to quickly and easily digest the information, and as always, interest the audience in taking the next step (e.g., scheduling an in-person meeting) in the investment process
Rate this Article:
Current: 0 / 5 stars - 0 vote(s).
Article Source: http://www.articlesbase.com/management-articles/how-to-use-graphs-and-charts-in-your-business-plan-372395.html
About the Author:I am a web site promoter
|
Submitting articles has become one of the most popular means of generating quality backlinks and targeted traffic to your website. Join us today - It's Free! |
|
Related Articles
The Management Team Section of the Business Plan – Don’t Just Include Resumes
By: gurpreet singh | 08/03/2008 | Management
Even the best new concept or existing plan will fail if executed poorly. The Management Team section of the business plan must prove to the investor why the key company personnel are "eminently qualified" to execute on the business model.
The Term Sheet’s Role in Raising Venture Capital
By: harjeetkaur | 11/03/2008 | Management
The value of the abbreviated term sheet format is that it speeds up the process of consummating a transaction. Specifically, it allows the parties to agree on the general terms of the transaction rather than having to debate less important details. In addition, because it is not binding, it allows the parties to take their discussions to the next level without the danger of committing too much. Note, however, that some parts of a term sheet may be binding. Typically the binding aspects only refe
Analyzing Customers in Your Business Plan
By: Nisha Garg | 27/03/2008 | Management
The Customer Analysis section of the business plan assesses the customer segments that the company serves. In it, the company must 1) identify its target customers, 2) convey the needs of these customers, and 3) show how its products and services satisfy these needs.
Factoring Financing: How to Grow Your Business Without Debt or Loans
By: Anil kumar yadav | 28/03/2008 | Management
What is factoring?
Accounts receivable financing, also known as factoring, is a powerful financial tool that has fueled the growth and success of a number of companies.
Forgive All Ebay Sins!
By: Diya sood | 29/03/2008 | Management
Over the years, I have been amazed at the “blinding” greed and reckless approach
to commerce that some business owners have employed. Lying to customers, selling inferior merchandise, and not offering refunds, left a firestorm of irate customers in their wake. Without fail, all of this “ill will” led most businesses to bankruptcy, and in some cases, Federal Prison
“why You, Why Now” - a Critical Component of a Winning Business Plan & Work Your Home Based Business 2idea in Three Easy Steps
By: Parveen kumar | 02/04/2008 | Business
Business plans continue to be an essential element of the capital-raising process. They must convince investors to take notice - investors that are shrewder today due to the ups-and-downs they have experienced over the past few years.
Adding to the financing challenge is the plethora of high-quality companies, both public and private, in which i
Writing a Business Plan What Makes a Good One
By: Honit | 15/02/2008 | Management
Writing a business plan can be a lot of hard work or it can be great fun. An effective plan can help your company to greatness. A poor one can lead you out of business. No plan is like asking to fail before you even start.
Why is My Restaurant not Full Every Monday Night?
By: kamal | 10/03/2008 | Management
In a quest for customers and to keep those customers, restaurants are now compelled to develop a marketing plan. Marketing plans are a crucial component for anyone who has the desire to make their restaurant a success.
Got a Question? Ask.
Ask the community a question about this article:
Q&A Powered by: 
Latest Management Articles
The Quickest Way to Generate Targeted Traffic Through Affiliate Marketing
By: Ravii Kumarr | 21/08/2008
The quickest way to generate targeted traffic and start earning commissions with an affiliate marketing business is to use Google adwords. One doesn't even need a website of their own to make money online using adwords. Traffic can be sent directly to an affiliate link.
The Audit's Results and Report - the True Story, According to the Iso 9001 Standard Requirements
By: Itay Abuhav | 21/08/2008
The internal audit chapter is included under chapter 8.2 - Monitoring and measurement (it's been said before on our web site already). When performing an audit you are monitoring processes. You sample a process and validate that it is done according to prior requirements. Once you stumble upon nonconformity, a process that was performed not according to a requirement, you must mention it in the audit report. But this is not the end of your story.
Internal Audit - the Iso 9001 Standard Requirements for Internal Audits and the Audits Program
By: Itay Abuhav | 21/08/2008
Internal Audit. "What a headache" - that's surely what every employee think to himself when they receives the massage of an internal audit approaching. There is a reason why. They know that someone is coming to poke their deeds...
How Scheduled Overtime Can be Better Managed
By: SteveHyans | 21/08/2008
HourDoc offers superior solutions for scheduled overtime. HourDoc’s scheduled overtime solution takes into account PTO, electronic timesheets and other valuable time and attendance hardware features. Many clients using the HourDoc scheduled overtime solution comment that better managing scheduled overtime helps them save time and money.
Why Managing Scheduled Overtime is Critical
By: SteveHyans | 21/08/2008
HourDoc offers a superior scheduled overtime solution. HourDoc’s scheduled overtime solution takes into account PTO, OT, electronic timesheets and other valuable scheduled overtime features. Many clients using the HourDoc scheduled overtime solution comment that these options help them solve scheduled overtime issues.
Top Ten Success Factors Of Lean Six Sigma - Identifying Success Factors Critical To Deployment, And Evaluating Which Tools Have The Most Impact On Pro
By: Jonathan Aston | 21/08/2008
Identifying success factors critical to deployment, and evaluating which tools have the most impact on projects
New research has identified the success factors critical to the success of a lean six sigma deployment, and the ones that make a difference etween partial and complete success.
The research also examined tool use in...
How to Have More Fun Running Your Painting Business
By: Patrick E Cavanaugh | 20/08/2008
Everything comes with instructions, why not a painting company? Call it automating your business, any time you can automate a procedure you free up your time. An automated business can run without a manager, you. Can your company run for any length of time without you? Can you take a vacation?
Secrets of Marketing Your Painting Business
By: Patrick E Cavanaugh | 20/08/2008
Where do the jobs come from? How do we get new customers? How do we expand into a new area. How do we market? Do we just throw dollars at everything that is screaming to us, "buy from me, I will send you all the customers you want. Do we take one big burst of advertising to everyone?
More from Rahul Chauhan
Advertising Methods. Market Research Questionnaire for a Bus
By: Rahul Chauhan | 29/03/2008 | Business
Advertising Methods. Market Research Questionnaire for a Business Start Up.
Which Method have you found effective? I would be grateful if you would take a few moments to complete this on-line form to help me gain self employment
Enjoy the Benefits of a Credit Merchant Account
By: Rahul Chauhan | 29/03/2008 | Business
A credit merchant account can make your business more productive than ever. That’s because a merchant account will let you start accepting credit card payments from customers in any part of the world at any time of the day or night. Could business possibly be better than that when conducted in any other way?
Do You Need Bad Credit Help
By: Rahul Chauhan | 28/03/2008 | Management
Are you one of thousands with no
credit and no collateral to help secure approval, or you just
have extremely bad credit and no one wants to help you, and all
you hear is stories and more stories?
Critical Guidelines You Need to Know Before Hiring Anyone
By: Rahul Chauhan | 28/03/2008 | Networking
We don’t like to think about people doing harm to ourselves or others. The reality, however, is that we live in a country with one of the highest rates of financial crimes, including embezzlement, fraud, theft, etc. And, that’s just the beginning
How a Decision Can Save Your Life
By: Rahul Chauhan | 28/03/2008 | Management
Mr. Galen Litchfield, the manager of Asia Life Insurance, was in Shanghai when Japanese troops invaded. This was in 1942, after the invasion of Pearl Harbor.
5 Dynamite Ways to Generate Ideas for Parenting Articles & 2 Best Places to Submit Your Articles
By: Rahul Chauhan | 27/03/2008 | Self Publishing
The key to selling reprints to parenting publications is the creation of dynamite ideas followed through with professional writing. Here, I’m focusing only on finding those lucrative topics.
How to Use Quotations Effectively?
By: Rahul Chauhan | 27/03/2008 | Writing
Quotations are the repetition of words used by somebody in the past. When you repeat the speech or spoken words of a character from a play or novel, you are said to be quoting that character. Use of quotes requires quotation marks, speech marks or inverted commas to denote repetition.
5 Hot Internet Businesses for 2008
By: Rahul Chauhan | 26/03/2008 | Home Business
If you are planning to start a new business in 2008, you should seriously consider one of the many Internet based businesses available today. The online businesses have numerous inherent advantages in comparison to their brick and mortar counterparts.
|
|
Business 
