How to Write a Winning Business Plan

Professional venture capitalists such as Tim Draper -- founder of Draper Fisher Jurvetson and the money behind Skype, Netzero and Hotmail, to name a few -- need to articulate on paper a business model that solves a problem or changes the world and opens up opportunities that no one else has ever dreamed of. Right now there are an abundance of such opportunities, ranging from energy to e-commerce to health care to security.

Once you have identified a need that people will pay for, you need to develop a well-thought-out, yet short and concise, business plan. Investors aren't going to weigh your plan on a scale to determine its value. The reality is that investors typically only read the executive summary and the financials, and if they like what they read, they call up the entrepreneur or business owner and offer to meet.

The following is an outline of what investors look for in a plan.

Executive Summary: This is a three- to five-page overview of the entire plan. The best way to start this section is to have a subheading called "Problem" followed by another subheading called "Solution." The rest of the section gives brief overviews of the market, marketing and sales strategies, revenue streams, competition, management, capital needed and exit strategy.

Company History: If the company has been in existence, provide a brief history of how it was started and milestones it has accomplished.

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