Every seasoned investor knows that detailed financial projections for a new company are an act of imagination. Nevertheless, most business plans pour far too much ink on the numbers--and far too little on the information that really matters. Why? Bill Sahlman suggests that a great business plan is one that focuses on a series of questions. These questions relate to the four factors critical to the success of every new venture: 

• the people,
• the opportunity,
• the context,
• the possibilities for both risk and reward

 A great business plan is not easy to compose, Sahlman acknowledges, largely because most entrepreneurs are wild-eyed optimists. But one that asks the right questions is a powerful tool. A better deal, not to mention a better shot at success, awaits entrepreneurs who use it.  

Professor Bill Sahlman discussing the 10th anniversary of his classic HBR piece, How to Write a Business Plan can be viewed prior to publication and exclusively by HBS Club members at:  

How to Write a Business Plan in 2008