Warning: I haven't gotten any business funded past the seed round. I am no expert but... this just seems like how its done after the umpteenth time, and I would like some feedback. This is perhaps a little cynical, but its 1:30AM and I wish I didn't have to spend weeks writing these things.
1) Decide what you want to build, how long it will take to build it, in what stages it will be built, how many people should work on it, and how much those people cost.
2) Figure out all the support required to turn what you built into a business: office, lawyers, sales people, marketing, website, and figure out how much that stuff costs. If this is your first business, you will probably greatly underestimate these costs. Ask for help.
3) Add up all the costs. Break your project into 3 phases: Seed, Angel Round, VC Round, that being a small product/featureset, a larger product/featureset, and the product/featureset that makes you ginormous. Outline the VC stage even if you intend an earlier exit.
4) Figure out what a chart should look like to make 10 times the value of the budget required in 3 years. Make this chart in Excel. Critique yourself about this number. If it seems like total bullshit, you can't sell it. If you aren't skeptical enough, it is certainly totally bullshit. Repeat steps 1, 2 and 3 until 4 is right.
5) Write a story about the market, connecting your costs and the generation of value. Throw in some trends you've noticed and business plan speak you've learned from weblogs.
6) Typeset and print so its pretty, with lots of charts: Pies, Bars, Histograms.
7) Show it to people who know what they're talking about, or people with money, or both, and get their feedback. Reiterate the process until someone gives you money.
