Introduction

Below is an excerpt from Chapter Five of Tim Burns' book, entrepreneurship.com. Burns is an MBA,
CPA, and attorney, which means he can cover all the angles of a business plan without getting
hung-up in any one area. His focus is on "reality-based planning," which doesn't mean your
company has to be profitable, but it has to show a clear path to profit.
THE E-PLAN

The Internet Entrepreneur's Treasure Map

Planning in a Real-Time Economy
Business commentators are divided on the ability to effectively plan in the new economy. Some
opine that the pace of change is so rapid that it is impossible to plan for the future. Successful
companies during this competitive era are preparing clear, flexible business plans that develop their
vision of their intended destination. Planning is necessary to develop your vision, but it needs to be
flexible. As a result, I am advocating a variation of the traditional business plan that I call the "e-
plan."

Burns' most important contribution to the literature of business plans is the "e-plan," a concept he
borrowed from venture capital guru David Cowan (Bessemer), and which he develops in his book.
Burns argues that a modern business plan should be presented as a series of 12 PowerPoint slides
plus an Executive Summary. This approach is both unique and valuable.

An e-plan pleases potential investors by immediately getting to the point. It's easy to update, and it
helps entrepreneurs remember that a business plan is wedded to a verbal pitch or presentation. For
online economy entrepreneurs who are serious (and in serious need of funding), this book is highly
recommended. More information about the author and the book follows the excerpt. Good luck in
your hunt for serious money!

The e-plan helps you capture your vision while providing a flexible platform for responding to the
inevitable changes and shifts in the economy. The new economy is no place for the 100-page
business plan that flushes out every conceivable detail. This exercise is not about earning a gold
star on your business plan from a difficult teacher or some picky banker. Rather, it is about capturing
your vision in a flexible format that facilitates the execution of your business model -- that is the
essence of the e-plan.

Enter The E-Plan

Extensive business plan were often aimed at traditional lenders who wanted to be sure that no stone
was left unturned. Chances are that in today's economy, many of the old stones will disappear and
be replaced by new ones by the time a conventional business plan is finished.

I was never a fan of the business plan treatise. Supplementary information, such as product circulars
and marketing materials, can be included in an appendix, but the narrative part of the plan should be
a maximum of 20 pages. The object is not to unearth every conceivable detail but to think through
your business model. Few plans are read in their entirety by potential investors, and the new
economy requires an even more concise way of formulating a business model.

This new format -- the e-plan -- is designed to help all the users of the business plan, which includes
the entrepreneur as well as potential investors and employees. It is streamlined both for speed of
digestion and ease of use.

The e-plan consists of an executive summary and approximately a dozen PowerPoint slides. Each
slide addresses an important component of your business model. I consider the e-plan to be more of
a compass than a map. It is designed to guide you in the right direction but is flexible enough to
accommodate shifts and changes in the marketplace. As these changes occur, the e-plan can be
used to produce a corresponding shift in strategy.

Some of the advantages of the e-plan format are its overview, flexibility, and presentation.

Overview. The executive summary and the slide format provide a quick overview of all important
components of your business model and provide a comprehensive understanding of the model. The
e-plan serves as a ready reference for the big picture.

Flexibility. The slide format provides you with the ability to change directions quickly. As changes
occur in the marketplace, your big picture can be changed accordingly.

Presentation. The slide format also facilitates the presentation of your business to potential
investors and employees. Chances are that more people will be hearing your presentation as
opposed to reading your plan.
Elements of The E-Plan
Executive Summary

In the following text, I provide a one-paragraph summary of each of the slides in the e-plan. Just
because a plan is concise, however, doesn't mean developing it is easy. I devote an entire chapter
of my book, entrepreneurship.com to each of these slides: what information investors are looking for,
how to gather and condense this information, and insights gleaned from the successes and failures
of other start-ups. This article is intended as an introduction to the e-plan; my book will guide you
through process of preparing one.

This one- or two-page document is the single most important part of your plan. In a nutshell, it
summarizes your particular market opportunity and the solution to a problem that your business
offers. Busy investors often don't have the time to read the complete business plan, particularly
when they are qualifying potential businesses. They usually rely on the executive summary to
provide a snapshot of your business model. One way to look at the summary is to think of it as the
story of your business. What need does your business fulfill? How can you best summarize your
business in 60 seconds or less? What is your vision?

Slide 1: Name of Company

Suffice it to say that the name of any Internet business is extremely important. As you might have
already found out, selecting a domain name these days is no simple matter. Choice domain names
are being bought and sold for heavy premiums. With the domain name so important, it is obviously
something to which you need to give considerable thought. Start immediately searching for one if
you don't have a name already.

Slide 2: Mission Statement

The mission statement is an abbreviated form of the executive summary. In one or two sentences,
what does your company stand for?

Slide 3: Management Team

The management team is of particular concern to investors. Note that I use the word team. Writer
John Dunne proclaimed that "no man is an island." In addition, no entrepreneur is an island, either.
The entrepreneurs that can attract the right people are the ones that ultimately succeed. The
management team is the backbone of the company. A founder that cannot attract a quality
management team will have trouble attracting good employees as well as customers.

Slide 4: Market

This slide will analyze the size of the potential market as well as its growth rate. One of the primary
advantages of the Internet is that the target markets are so huge.

Slide 5: Industry

Industry concerns a discussion of the structure of the particular industry that you are targeting. Who
are the buyers and the sellers? Who are the suppliers? What is the market chain of the industry?
How would you diagram it? Is the industry in a growth mode?

Slide 6: Pain -- The Market Opportunity

This slide considers the pain or the opportunity in the market. Where is that part of the market
broken or inefficient? How does it create an opportunity for you? Where is a problem that your
business will solve? The best business opportunities are based on the most compelling needs of the
marketplace. This often applies to a highly fragmented industry or an industry with an inefficient
market chain.

Slide 7: Solution

What is your solution to the problem or pain in the marketplace? What is your answer to the
disintermediation or the need in the marketplace? How does your product or service benefit the
marketplace? Why is your solution unique from others? Do you have a competitive advantage that
can be sustained? Is your solution scalable, allowing it to be implemented on a large scale?

Slide 8: Marketing Plan

This slide represents an overview of your marketing plan. How are you going to attract customers?
Are there viral marketing possibilities you can exploit? Viral marketing is a strategy in which
customers do much of the marketing for you. What unique marketing advantages do you have?
What important alliances can you develop?

Slide 9: Financial Projections

This portion of the plan involves the projection of revenues and expenses from the business.
Although many investors discount projections, they can play an important role in examining the
financial portion of the business model. The most useful projections are developed around a
meaningful unit of measure, or metric. For example, revenues and expenses could be analyzed and
expressed on a per customer basis. What is your acquisition cost per customer? What is his or her
worth in terms of lifetime revenue? How many customers do you need to break even? Your
projections should detail your use of start-up funds, which include capital expenses and working
capital needs until the business reaches breakeven.

Slide 10: Valuation Analysis

This final slide can be thought of as a segue between where your presentation ends and negotiation
begins. Build the case for the valuation of your company based on your business model. Choose the
most relevant metrics to compare your business with one traded publicly. This slide is very useful in
talking with potential investors and employees.
Uses of The E-Plan
The main audience for your e-plan is you. First and foremost, the e-plan is a way of quickly capturing
your vision and putting it in a format for execution. The plan has to make sense to you and guide you
in propelling your vision into reality.

The next audience for your business plan is potential investors. Investors today simply don't have
the time to wade through long plans. A short, direct format serves the purpose better. Moses Joseph
of Anila Corporation relayed that knowledge of the market is much more important than a written
business plan. He mentioned that he can tell whether a person really knows the market within five
minutes of talking to him or her. In Joseph's opinion, the value is not so much the written plan but
rather the discipline of the planning process itself. This process forces you to fully examine the
particular market opportunity and confront certain critical issues associated with your venture. It is
very important for entrepreneurs to completely and fully understand their markets.

The next audience for your business plan is your potential employees, suppliers, and affiliates. For
this use, a good business plan can show them that your business is for real and that you have given
it considerable thought.

About the Author

Tim Burns, MBA, CPA, JD, received his BA in economics (Phi Beta Kappa) from Tulane University
in 1979. He received his MBA in finance and accounting in 1980 and his JD (cum laude) in 1983,
both from Tulane University. He has practiced law in the areas of individual and corporate taxation,
small business and estate planning for 15 years. He is a member of the Louisiana State Bar
Association, the Society of Louisiana CPA's, the AICPA and the National Academy of Elder Law
Attorneys.

Tim currently hosts a weekly television program on legal and business issues for a local Cable
Access Channel, authors a regular column on entrepreneurship and speaks frequently on the
subjects of taxation, strategic business planning, and estate planning. His writing credits include
serving as a contributing author to the Attorneys and Accountants Continuing Education Program
and the book "Break the Curve - The Entrepreneur's Blueprint for Small Business Success,"
published by Thomson International Business Press in the fall of 1998.

You can contact Tim Burns directly by sending tim@timburns.com. You'll find more articles and
resources for the entrepreneur at his web site, www.timburns.com.