Writing That Works, 3e_ How to Communicate Effectively in Business - Kenneth Roman [40]
There are several possible explanations as to why I and others sometimes stumble over an accounting note or indenture description. Maybe we simply don’t have the technical knowledge to grasp what the writer wishes to convey. Perhaps the writer doesn’t understand what he or she is talking about. In some cases, moreover, I suspect that a less-than-scrupulous issuer doesn’t want us to understand a subject it feels legally obligated to touch upon.
Perhaps the most common problem, however, is that a well-intentioned and informed writer simply fails to get the message across to an intelligent, interested reader. In that case, stilted jargon and complex constructions are usually the villains.
Buffett concludes with this useful tip:
Write with a specific person in mind. When writing Berkshire Hathaway’s annual report, I pretend that I’m talking to my sisters. I have no trouble picturing them: Though highly intelligent, they are not experts in accounting or finance. They will understand plain English but jargon may puzzle them. My goal is simply to give them the information I would wish them to supply me if our positions were reversed. To succeed, I don’t need to be Shakespeare; I must, though, have a sincere desire to inform.
No siblings to write to? Borrow mine: Just begin with “Dear Doris and Bertie.”
When even the numbers are easy to read and digest, we will really have made progress.
BUSINESS PLANS FOR NEW VENTURES
First comes the idea, then comes the money. Before the money, there’s the business plan. For the entrepreneur, it’s a one-time thing. For any potential investor, there are many ideas and opportunities — and many plans.
The profusion of possibilities is illustrated in a note by Professor Bill Sahlman for his course at the Harvard Business School. He describes his “ever growing stack of Internet based business plans, each proposing to ‘revolutionize’ an industry, each ‘conservatively’ projecting at least $50 million in revenues within five years based on a modest market share of under 10%, and each containing a projection of likely investor returns of over 100% per annum.”
Every new venture has a “story,” the term replacing “business plan” in some circles. Why should the investor believe your story? PricewaterhouseCoopers says the business plan “must convey to the reader that the company and product truly fill an unmet need in the marketplace,” and lists the business issues to be addressed.
First, get to the point, and don’t be long-winded. Start with an executive summary, to make the case quickly. Credibility is crucial — it pays to be candid; it’s good to understate rather than exaggerate; it’s vital to be clear.
Professor Murray Low at Columbia Business School identifies two top priorities:
Who are the people? “I’d rather invest in an A team with a B idea than the other way around.”
Is there a real customer? “Markets are abstractions. There must be customers willing and able to pay.”
He also points out two glaring weaknesses in many plans:
Mindless optimism, — like saying all that is needed is a small percentage of a large market. “That’s just hoping. How will the business be built?”
Sloppy presentation — like typos, spelling mistakes, careless grammar. “They haven’t put the time in to make it right, so the plan will not be read. The people may be OK on vision and the big picture, but you have to question their execution.”
Investors seek confidence in a good business (and a well-written plan).
8 Recommendations and Proposals That Sell Ideas
Whether you are in business, government, or the not-for-profit world, you will have to sell your ideas in writing. In written recommendations to committees or boards to take some action. In written proposals for the funding of grants. However persuasive you are in person, you will be asked to put it in writing.
The purpose is to persuade somebody