"No Business Plan survives first contact with the customers" Steven Blank
Banks insist you do a business plan, to make you prove you have thought things through. When you sit there and do a cashflow and a Profit and Loss, you suddenly discover just how hard you have to run to stand still. You expose your burn rate, your exposure to debt and how if just one supplier insists on money up front or one big client defaults, your position becomes precarious.
But that Business Plan is not for Investors.
"Investors are not solely evaluating your company's story.They are also evaluating your ability to convey that story." Bill Gurley of Benchmark
Investors want to see what is in it for them. That involves...
Showing them how it will catch on and that you have the skills to make it do so (an e-commerce site with no visitors, or with a flawed engagement system is worthless).
How you handle the orders generated - who your suppliers are, how you undercut traditional retailers (or attract a niche), how you deliver and what customer support is required.
Where the money is. After subtracting the cost of sale and the services needed to make it happen, how much is left. How quickly can capital be repaid. How sustainable is the business model. And how the net value of the business grows to become a bankable asset (which they have a share of).
The team. Are there people involved who can do what the business promises and make it happen, or is it a pipedream from someone who doesn't understand the complexity and the issues.
This is normally done, not on paper in long reams of third party prose, but in a short, snappy pitch deck like the one Jerome has just shown us.
And how does this differ from a Business Model?
Well that's the idea that an e-commerce site is the way to do this. That will change.