Over the years that I have been writing business plans, I’ve developed a few guideposts for my work in creating effective documents.

Address the four main questions.

1. What is the value proposition of your product or service?
2. How big is the market?
3. How is your company going to reach that market?
4. Why invest in your management team?

Most investors want to know how you answer these basic questions. There are lots of other questions, too, about competition, execution, scalability, return on investment, valuation, and so on. But these four main questions are the cornerstones of a good plan.

Use key diagrams to illustrate relationships and flows.

However good the writing, a plan still needs some key diagrams to effectively communicate. Content flow, marketing partnerships, technical architectures, revenue models – these and other key concepts benefit from simple block diagrams that help your audience understand how your business works.

Do the thinking first, then write the plan.

There is no substitute for critical thinking and strategizing about your business. If you’re not clear about your revenue model, for example, no amount of writing will clarify it for you. The conventional wisdom is to write the bulk of your document first and then write the executive summary last. My approach is just the opposite. I often start with the executive summary. If everyone on the team can agree on this overall vision for the company, then I know that writing the rest of the plan can proceed with little major rework.

Tell a compelling story.

I’m not talking about a Hollywood script, but rather an unfolding sequence of market opportunity, innovative solutions, customer experience, rapid growth, and huge profits that tells the story of your business. The executive summary, especially, is the place to promote this vision of your future success.

There are many other crucial elements of a well-crafted business plan. These are just a few thoughts for your consideration.