286 CHAPTER 12 GETTING IT APPROVED
Focus
The German, American and Englishman introduced on page 3 each had differing plans for
different readers. I hope that the reason has become clear. Before you start sharing your
plan with all and sundry, check to see that it really will meet their needs and answer posi-
tively their questions. Many pages ago, you set off by identifying your potential readers.
As already discussed, you are seeking:
internal approval for the strategy and plan (perhaps in competition with another
department) – which tends to imply automatic funding; or
external funding – you have already looked at who you might approach (see
Chapter 10).
The fast track to approval
1 Take a short vacation. Visit the health club. Play golf. Go fishing. Do anything
to make sure that you are in good shape and ready for a fight.
2 Mentally revisit your intended readers. Make sure that you really understand
what they want to read.
3 Make sure that your plan answers the right questions – as completely and
concisely as possible.
4 Plan carefully before delivering the plan.
5 Prepare thoroughly for the first and subsequent meetings.
6 Give as much assistance as possible to help your readers understand what is in
the plan.
7 Follow up promptly with additional information. Make revisions to the plan if
necessary and learn for the future. Help recipients through their due diligence.
8 Do your own due diligence. Do not sign anything without checking it
carefully.
9 Persevere. Be prepared for delays, disappointments and set-backs.
10 Once the cash is in the bank, go straight to Chapter 13.
FOCUS 287
The two are of course very similar, but there is a slight difference of emphasis. Picture in
your imagination the people who will be reviewing and approving the plan. Will it give
them the information that they want? The list of business plan reviewers on page 289
shows how emphasis might vary among different readers.
‘I think there is a world market for maybe five computers.’
THOMAS WATSON, CHAIRMAN IBM, 1943
Venturing forth
If you are looking for start-up funding (or maybe even growth equity) – and I am
sorry to have to be the bearer of bad news – this is not going to be much fun. It
can be a full-time job, lasting several months, sapping your energy and shattering
your morale. I am not trying to deter you. Quite the opposite. It would be a waste
of all our hard work producing such an exemplary business plan if you gave up. I
hope that you are the exception and have a smooth ride. Just in case you do not, be
prepared. You must find the grit and tenacity to see this through, to keep fighting. It
really is worth it at the end of the day.
You have to remember that you have the vision, you know that you can turn your
ideas into a hugely successful business, or take an existing business to new heights.
The people you talk to do not share that vision. Otherwise they would not be sitting
in ivory towers reviewing business plans. They would be out there doing what you
are doing.
Remember the countless venture capital providers, no doubt clever and
knowledgeable people, who nevertheless time after time turned down
breathtaking opportunities such as the jet engine, the hovercraft, the bagless
vacuum cleaner, and many others. How many hundreds of stories have you read of
brilliant inventors or entrepreneurs who were turned away from countless offices
for being too new, too advanced or too revolutionary. The worst rejection of all: We
can’t see a need for this product or idea, no one will ever buy it.
This said, it is possible. It can be done. If you refuse to give up, sheer
perseverance will bring you success. Take comfort in the corporate finance officers’
most-used defence about opportunities that they turned down, ventures that were
financed elsewhere and went on to be huge successes. I did not back it because
when it was offered to me the market was not ready for it. Right. Another month made
all the difference, I suppose.
t
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