If YES, here is how to successfully present a business plan to investors, bank loan officer or boss. A business plan is generally referred to as a document on which a new business outlines its modus operandi. An effective business plan contains a detailed plan of how a company intends to achieve its goals over a period of time. A lot of businesses, at some point in their lives do seek funding in order to be able to stay afloat, or even to get started; and for you to gain the audience of an investor, lender or boss, your intended business ought to have a workable business plan.
Both venture capitalists and angel investors have the difficult task of balancing risk versus reward in their decisions. Your first challenge is to show them the financial opportunity you are presenting to them.
Explain why your venture has the potential to grow quickly and be extremely profitable compared to other ventures they might be looking at. Then show what you have done to mitigate risk. Write in an engaging, enthusiastic, confident tone. The business plan can be compared to a marketing brochure.
Your goal is to get the investors as excited as you are about the future prospects for your venture. Investors want to back companies that can achieve considerable size in a three- to five-year period.
Show them why your market is rapidly developing, or already large, and why your venture will be able to capture market share at an accelerated pace. Explain how your technology works in simple, straightforward terms.
Investors see business plans for many dynamic technologies over the course of a year. Their major concern is whether the technology can make money.
Present a compelling case for why the customer needs your product and will pay money for it. The solution you are providing the customer must not only be good, it must be important--addressing a problem that the customer has an urgent need to solve, right now.
Demonstrate you can sustain your competitive advantage. The most difficult part of writing a business plan is articulating what you will do to maintain your position in the market as time goes by and new competitive threats appear--which they invariably will.
Approach this by showing what you will do to ensure your product or service offering is so superior that your customers would have little incentive to buy from anyone else.
Make the investor believe in your management team. Build credibility with investors by showing past successes your team members have had that will translate into success in your new venture.
Show what types of skills and experience are required to succeed in this type of business--and how you have gone about assembling your team with these specific requirements in mind.
Tips Before you send the plan to investors, ask two or three trusted associates to read it and let you know if they find any areas that are confusing or need further explanation.
Keep the plan to a reasonable length, 20 pages of narrative and 10 pages of financial projections. Present optimistic, but not outlandish, financial projections. The assumptions behind the numbers are what matters most.
Make sure you can explain why you believe your assumptions are realistic.Use a business plan template to create your business plan by adding the detailed information behind the pitch deck and executive summary outline.
To attract investors a business plan should include the following: 1. Cover page: Include the company’s name, contact information and company logo. 2. A business plan, as all good entrepreneurs starting out in life should know, is the foundation, or rather a springboard, towards the establishment and growth of a new business.A business plan is an essential tool for companies raising capital – and your business plan needs to be Investor Ready.
Jul 09, · But for many professional investors, such a request is a non-starter, meaning there is no longer any reason to see the slide PowerPoint or incredibly detailed business plan.
When writing your business plan, it is best to keep the audience you want to target for funding in mind, because the different business financiers or investors expect to see different things in your business plan.
Mar 14, · Have a well-thought-out business plan on-hand to share, so investors can read more if they’d like to.
The intention, after all, is that you deliver a powerful pitch, and by the end, their hands are out asking for either your executive summary or your complete business plan/5(45). Mar 21, · 99% of business plans get rejected by investors.
Here are the 3 things that you need to do right if you want investors to pay attention to you and avoid having your plan thrown into .