July 19, 2011
3 Things to Address in Your Business Plan
When looking for angel investors, venture capitalists, private equity firms or debt capital for your new business, your business plan is the most essential piece of material that you will want to present to them.
Investors who you have talked into finding out more about your business will always request a copy of your business plan. If you are able to keep your potential investors engrossed in your business, they will ultimately look at your whole business plan. The manner in which you present your company in your business plan will have a huge impact on how the investors perceive you and the progression of your business.
Click here to download your business plan template <==== Seasoned equity capitalists or venture capitalists as they are also known, will search for a lot of specialized info about your business before they will invest money in it. They want to be convinced that your company is ready to grow at a fast pace and move in the direction of a hassle free payout for all of its investors. All effective business plans have an executive summary, company analysis, customer analysis, industry analysis, marketing plan, competitive analysis, a description of the management team, an operations plan a financial plan and an appendix that has background documentation such as graphics, charts and proprietary technologies. This might all seem like a lot of information of decipher and become familiar with, but the following are three very important questions that you need to address in your business plan. 1 Does my company take care of a need or situation? What is the big issue that needs addressing? Who wants you to address it? Your business plan has to prove that your business is exactly what your clients want and need. You must put conclusive information in your business plan that shows that people are falling down to get the product or service that you are providing. This will make investors confident that your company can grow at a fast pace. 2 Does my management team have what it takes to be successful? Sadly enough, you cannot base your entire side of the story on your business idea only. You and your management team must have experience in providing this particular product or providing this particular service. Put the spotlight on you or other team members that have a track record for building the type of business that you currently have. For example, if your company is a start up company, spotlight the person who has the most experience starting a business from scratch. Click here to download your business plan template <==== 3 Are my pro forma financial statements, easy to understand, based upon facts and can be verified? Pro forma statements are better known as a way to financially forecast the health of your business to investors. This is the best place to prove how realistic your business plan is in general. The reason for this is because according to Growthink: "The figures used in these statements flow from the analyses in every other section of the business plan." All in all, questions number one and two should be used for vision of your business plan. You should ask yourself the last questions each time that you complete a draft.
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