By Sean Wise

Traditionally speaking, business plans have been written mainly by two types of people for two different reasons: 1) Entrepreneurs - to obtain the bank loans needed to launch their new venture; and 2) MBA students - to obtain a top grade. These days there are more budding entrepreneurs writing business plans than waiters in Hollywood writing movie scripts. But with so many plans out there, how do you ensure that your business plan for the next great e-business stands out among the crowd?

A solid, stand-out e-business plan contains all the ingredients of a regular business plan - Executive Summary, Management Overview, Market Analysis, SWOT (Strengths/Weaknesses/Oppor-tunities/Threats) review, etc. - with the addition of a crystal-clear focus on why your venture has a competitive advantage over the hundred other plans on a Venture C apitalis's (V C ) desk. Any college graduate can take a text on business plans or a software template and simply fill in the blanks, but that won't cut it if you're looking to land $2 million in start-up capital.

As with so many things, it's what's inside that counts. A business plan in general, and an e-business plan in particular, must contain extensive information on each of the following key areas and must explain why your venture has a competitive edge in at least two.

p e o p l e

Does your management team have all the right people in place? Show how your team has both the prerequisite domain knowledge and the necessary business acumen to run the company. You need to demonstrate that your team has the proper balance between proven success and rising stars, and between innovative thinking and experience. Since last year's high tech shakeout, you must now show (more than ever) that in addition to having the top technical people and some key industry players with domain knowledge, your team also has individuals with old economy strength in areas such as finance, operations, customer management and sales.

p r o d u c t

What is your revenue model? How will your venture make money? This may sound like an obvious component but it's an element missing from many business plans. C learly describe the product or service you will be offering. Demonstrate why your item is better than any other on the market - or if it's unique - and why it is needed.

p l a c e m e n t

Who will be buying your product? Is there a need for what you are offering? Explain the marketplace's size and culture, and describe your position within that market. Prove that your venture can acquire a large enough portion of the marketplace to generate long-term sustainable growth. You don't always have to be first mover in the space, but you have to show that there is enough of the pie left to generate the returns on investment (ROI) that V C s seek. (Most seek a minimum return of 20 times their investment, and hope for a return of 100 times.)

p l a n

What is your company's overall strategy? C onvey your vision and illustrate how you'll succeed in turning this vision into reality. Show how you will maximize the competitive advantages set out under the other three Ps to ensure success. Demonstrate how you propose to penetrate the market and how you intend to create entry barriers to dissuade others from entering the space (the best examples of such being proprietary intellectual property and long-term strategic alliances with key industry players.)

Other things that you should keep in mind when writing your e-business plan:

- Realistic financial projections

The days of V C s accepting 400 per cent growth over two years are over

(try for break-even within the first few years);

- Milestones your venture has already surpassed Nothing

demonstrates success like success; and

- Proposed use of capital People want to know what you intend to do

with the money.

These four Ps are the pillars for a successful e-business plan and are what V C s are looking for. If the purpose of your business plan is to receive start-up money, you must ensure that you're giving them all the information on which to base their decision. Ill conceived and poorly written e-business plans that do not properly illustrate the four Ps tend to wind up in the same place as so many of those Hollywood waiters' movie scripts.

Sean Wise (sean.wise@ca.eyi.com) is the Managing Director of Ernst & Young's Entrepreneurial Business C entre, located in Toronto, Ont.