Bankable Business Plans

by Edward G. Rogoff • 2003 • 258 pages

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Business Entrepreneurship Buisness

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Key Takeaways

1. A bankable business plan meets funders' needs and communicates your vision

Your plan speaks for you. If your plan is inadequate or unfocused, people will assume that you are inadequate and unfocused.

Purpose and audience. A bankable business plan serves the specific purpose of attracting financial support by addressing the needs and concerns of potential funders, whether they are bankers, investors, or partners. It should clearly communicate your business concept, strategy, and financial projections in a way that inspires confidence in your ability to execute the plan successfully.

Key components. An effective plan includes:

Executive summary that hooks readers
Detailed market analysis
Clear competitive advantage
Realistic financial projections
Qualifications of key team members

Avoid common pitfalls. Don't rely on generic templates or formulas. Your plan should be uniquely tailored to your business and demonstrate your thorough understanding of the market opportunity. Be honest about potential risks and challenges, while emphasizing your strategies to overcome them.

2. Define your company's purpose and initial resource requirements

What Will Your Business Accomplish For Your Customers?

Customer focus. Clearly articulate how your product or service will meet customer needs better than existing alternatives. This could involve:

Solving a problem more effectively
Offering greater convenience
Providing higher quality
Delivering better value

Resource assessment. Conduct a thorough inventory of what you'll need to get started:

Tangible resources: Equipment, supplies, office space
Intangible resources: Licenses, patents, specialized knowledge
Human resources: Key personnel, advisors, contractors

Realistic budgeting. Research costs carefully and create detailed estimates for:

Startup expenses
Operating costs for the first year
Marketing and sales budgets
Buffer for unexpected expenses

Be conservative in your estimates to avoid running out of capital before you can gain traction.

3. Develop a winning strategy and analyze your target market

Create a Powerful Competitive Advantage

Competitive positioning. Choose between two fundamental strategies:

Low-Cost Leadership: Offering the lowest prices through operational efficiency
Differentiation: Providing unique features or superior quality

Clearly explain how your strategy gives you an edge over competitors.

Market analysis. Conduct thorough research to understand:

Market size and growth potential
Customer demographics and psychographics
Competitor landscape and market share
Industry trends and regulations

Validate your concept. Before committing significant resources:

Conduct surveys or focus groups
Create prototypes for testing
Analyze similar businesses in other markets
Seek expert opinions in your industry

Use this data to refine your strategy and demonstrate market viability to potential funders.

4. Create a strong marketing campaign and dynamic sales effort

Marketing describes how you will position and let your potential customers know about your product or service.

The Four Ps of Marketing:

Product: Clearly define features, benefits, and unique selling points
Price: Determine pricing strategy (premium, competitive, penetration)
Place: Identify distribution channels and locations
Promotion: Plan advertising, PR, and other promotional activities

Sales strategy. Develop a concrete plan for:

Hiring and training sales staff
Setting realistic sales targets
Creating compelling sales materials
Establishing a follow-up and relationship-building process

Measure and adapt. Implement systems to track marketing and sales effectiveness:

Monitor key performance indicators (KPIs)
Conduct regular performance reviews
Be prepared to adjust strategies based on real-world results

Remember that even the best products need effective marketing and a strong sales effort to succeed in the marketplace.

5. Design your company structure and target appropriate funding sources

Entrepreneurship Is A Team Sport

Organizational design. Choose a structure that supports your business goals:

Functional: Organized by departments (finance, marketing, etc.)
Product-based: Divisions focused on specific product lines
Matrix: Combines functional and project-based structures
Geographic: Regional divisions for different markets

Consider how your structure will evolve as the company grows.

Key personnel. Identify critical roles and the qualifications needed:

Management team
Technical experts
Advisory board members

Highlight the unique skills and experience each person brings to the venture.

Funding options. Research and target the most appropriate sources:

Personal savings and friends/family
Bank loans (including SBA-guaranteed loans)
Angel investors
Venture capital
Crowdfunding platforms

Tailor your pitch to address the specific concerns and goals of each funding source.

6. Present compelling financial data and use industry benchmarks

The accuracy of your financial figures and projections is absolutely critical in convincing investors, loan sources, and partners that your business concept is worthy of support.

Essential financial statements:

Income statements (projected for 3-5 years)
Cash flow projections
Balance sheets
Break-even analysis

Key assumptions. Clearly explain the basis for your projections:

Sales growth rates
Gross margins
Operating expenses
Capital expenditures

Industry comparisons. Use resources like the Risk Management Association (RMA) data to benchmark your projections against industry averages. This adds credibility and helps identify areas where your business may outperform or face challenges.

Scenario planning. Present multiple scenarios (best case, expected case, worst case) to demonstrate your understanding of potential risks and opportunities.

7. Polish your plan's presentation and prepare for in-person meetings

Despite all the electronic communication methods available today, nothing is more effective than an in-person meeting.

Professional presentation. Ensure your plan looks polished and professional:

Use clear, readable fonts and formatting
Include a table of contents and page numbers
Proofread carefully for errors
Consider professional binding for hard copies

Executive summary. Craft a compelling 1-2 page summary that covers:

Business concept and opportunity
Target market and competitive advantage
Financial highlights and funding needs
Key team members and their qualifications

This may be the only part some busy investors read, so make it count.

In-person meetings. Prepare thoroughly for face-to-face presentations:

Practice your pitch until it feels natural
Anticipate potential questions and objections
Bring supporting materials (prototypes, demos, etc.)
Follow up promptly after the meeting

Remember, your passion and knowledge of the business are just as important as the written plan in convincing others to support your venture.

Last updated: May 3, 2025

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FAQ

1. What is "Bankable Business Plans" by Edward G. Rogoff about?

Comprehensive Guide to Business Plans: The book is a step-by-step manual for creating business plans that attract funding from banks, investors, and other financial supporters.
Focus on Bankability: Rogoff emphasizes that a "bankable" plan is one that meets the specific needs and concerns of financial backers, not just the entrepreneur’s vision.
Practical, Action-Oriented Approach: The book is structured around ten essential action steps, guiding readers from defining their company to presenting their plan and themselves effectively.
Real-World Examples and Tools: It includes sample business plans, outlines, financial statement templates, and advice on using industry data (like RMA data) to validate projections.

2. Why should I read "Bankable Business Plans" by Edward G. Rogoff?

Proven Success Framework: Rogoff has personally raised over $100 million using the methods in the book, and has helped countless entrepreneurs do the same.
Focus on Funders’ Needs: The book teaches you to write plans that directly address what banks and investors look for, increasing your chances of getting funded.
Accessible to All Skill Levels: Whether you’re a first-time entrepreneur or an experienced business owner, the book breaks down complex concepts into manageable steps.
Endorsed by Industry Leaders: The foreword by Jeff Bezos and praise from business professors and bankers highlight its credibility and practical value.

3. What are the key takeaways from "Bankable Business Plans" by Edward G. Rogoff?

Meet Funders’ Needs: A successful business plan must focus on the needs and concerns of those providing capital, not just the entrepreneur’s goals.
Ten Essential Action Steps: Rogoff’s method is built around ten clear steps, from defining your company to using industry data to validate your plan.
Financial Rigor is Crucial: Accurate, conservative, and well-explained financial projections are essential for credibility.
Presentation Matters: Both the content and the physical appearance of your plan influence how funders perceive you and your business.
Flexibility and Honesty: The best plans show you are profit-oriented, honest, qualified, thorough, committed to all stakeholders, and flexible in adapting to change.

4. How does Edward G. Rogoff define a "bankable business plan"?

Specific Purpose: A bankable plan is designed to test feasibility, secure funding, attract key people, and serve as an operational template.
Not Formulaic: It avoids generic templates, instead reflecting the unique aspects of your business and industry.
Financial Focus: The plan must address financial issues head-on, including credible projections and use of industry benchmarks like RMA data.
Extension of the Entrepreneur: The plan reflects your qualifications, honesty, and commitment, serving as a proxy for your capabilities.
Adaptable for Any Stage: Whether starting, growing, or buying a business, the same principles apply.

5. What are the "Ten Essential Action Steps" in "Bankable Business Plans" by Edward G. Rogoff?

Define Your Company: Clarify what your business will accomplish for customers, investors, lenders, suppliers, employees, and yourself.
Identify Initial Needs: List all tangible and intangible resources required to get started, with realistic cost estimates.
Choose a Winning Strategy: Determine your competitive advantage through low-cost leadership or differentiation, and match strategies to your industry type.
Analyze Your Market: Research and define your target market, competition, and regulatory environment.
Develop a Strong Marketing Campaign: Plan how you’ll reach customers and what messages you’ll use, focusing on the Four Ps (Product, Price, Place, Promotion).
Build a Dynamic Sales Effort: Detail your sales process, staff, and how you’ll prioritize and track sales.
Design Your Company: Structure your organization, define key roles, and choose the right legal structure.
Target Your Funding Sources: Identify the most likely sources of financing and tailor your plan to their requirements.
Explain Your Financial Data: Present clear, honest, and detailed financial statements and projections.
Use the RMA Data: Compare your projections to industry benchmarks to validate your assumptions and impress funders.

6. How does "Bankable Business Plans" by Edward G. Rogoff recommend analyzing your market and competition?

Thorough Market Research: Use demographic, geographic, seasonal, and purchasing pattern data to define your target market.
Library and Industry Resources: Leverage business libraries, industry associations, and government data for in-depth research.
SWOT Analysis: Assess your business’s Strengths, Weaknesses, Opportunities, and Threats to clarify your competitive position.
Regulatory Environment: Identify and address all relevant regulations that could impact your business.
Testing and Validation: Conduct surveys, focus groups, or test sales to validate market demand before launch.

7. What is the role of financial projections and RMA data in "Bankable Business Plans" by Edward G. Rogoff?

Credibility with Funders: Accurate, conservative financial projections are essential for convincing banks and investors.
Six Key Financial Assumptions: Clearly state assumptions about startup costs, revenue, operating costs, borrowing, equity returns, and company value.
Essential Financial Statements: Include income statements, balance sheets, cash flow projections, and break-even analysis.
RMA Data as Benchmark: Use Risk Management Association (RMA) industry data to compare your projections to industry norms, addressing any discrepancies.
Step-by-Step Guidance: The book provides detailed instructions and examples for creating and presenting these financials.

8. How does Edward G. Rogoff advise structuring and presenting your business plan for maximum impact?

Professional Appearance: Use neat, high-quality paper, spiral binding, and a clear, organized layout.
Concise Executive Summary: Summarize all ten action steps in one page or less, tailored to your audience.
Logical Organization: Follow a standard format—cover page, table of contents, executive summary, detailed text, and appendix.
Clarity and Readability: Use bold headings, white space, and simple language to make the plan easy to navigate.
Tailored Appendices: Include detailed exhibits, résumés, and supporting documents in a separate appendix for interested readers.

9. What are the "Six Immutable Points" every business plan should communicate, according to "Bankable Business Plans" by Edward G. Rogoff?

Profit Orientation: Clearly show that making a profit is a primary goal.
Honesty: Be candid about your background, failures, and lessons learned.
Qualifications: Demonstrate that you and your team have the necessary skills and experience.
Thoroughness: Address all aspects of the business, leaving no critical questions unanswered.
Commitment to Stakeholders: Show you understand and will meet the needs of investors, employees, suppliers, and customers.
Flexibility: Indicate your ability to adapt to change and revise your plan as needed.

10. How does "Bankable Business Plans" by Edward G. Rogoff address different types of industries and competitive environments?

Industry Categories: The book covers strategies for emerging, maturing, stagnant/declining, fragmented, and dominant-leader industries.
Tailored Strategies: Offers specific advice for each industry type, such as focusing on niches in stagnant industries or local markets in fragmented ones.
Competitive Advantage: Emphasizes the importance of identifying and leveraging your unique strengths, whether through cost, differentiation, or service.
Exit Strategies: Advises planning for how you and your investors will eventually exit the business, which varies by industry.
Real-World Examples: Provides case studies and examples for each industry type to illustrate effective strategies.

11. What are some of the best quotes from "Bankable Business Plans" by Edward G. Rogoff and what do they mean?

“Your plan speaks for you. If your plan is inadequate or unfocused, people will assume that you are inadequate and unfocused.” — Highlights the importance of a well-crafted plan as a reflection of your capabilities.
“A bankable business plan is one that attracts the approval and financing for your venture by addressing the needs of bankers and investors while still accomplishing your own entrepreneurial goals.” — Emphasizes the dual focus on funders’ needs and your own ambitions.
“It’s probably the rare business plan that survives the first day of the business being open. Nevertheless, the process of writing the plan forces you to think through many different cases.” (Jeff Bezos, Foreword) — Underlines the value of planning, even if reality changes.
“Flexibility is often the key to business success.” — Stresses the need to adapt as circumstances evolve.
“Producing a meticulous set of financial projections and comparing them to the RMA data... will result in a banker or investor who says ‘Your numbers look good.’ This is the best possible reaction...” — Shows the practical payoff of following Rogoff’s method.

12. How does "Bankable Business Plans" by Edward G. Rogoff help you present yourself and your plan to investors and banks?

In-Person Presentation Skills: Offers advice on managing context, content, and nonverbal cues (the Three Cs) during meetings.
First Impressions Matter: Stresses the importance of punctuality, appearance, and attitude in building credibility.
Customizing Your Pitch: Recommends tailoring your presentation to the specific interests of bankers or investors, focusing on their priorities.
Leave-Behind Materials: Advises on what documents to provide after meetings, ensuring they reflect the latest discussions and requirements.
Practice and Honesty: Encourages practicing your pitch, being yourself, and being honest about your strengths and weaknesses to build trust.