
Whatever funding platform you’re looking to for investment – be it your bank, venture capitalists, crowdfunding websites or grants from the government: those you’re pitching to will expect to see a carefully thought-out business plan before they’ll agree to fund or invest in your business.
Research has shown companies with a business plan raise twice as much capital as those without one in the first twelve months, so that should leave you in no doubt as to the importance of getting it right.
In addition, it encourages you to look long and hard at your concept and product – does it really have legs? Do the figures stack up? How are you actually going to implement it? Once completed, it will give you an excellent overview about the feasibility of your big idea – information not only vital to yourself but also potential investors. So here is some advice on the key points you should cover to ensure that you have a clear and well-structured business plan, one that gives you the best chance of walking out with that much sought-after ‘I’m in’ vote.Don’t underestimate the importance of the executive summary
The executive summary forms the first part of a business plan and if not adequately presented, could also be the last part your potential investor reads. This section helps them to decide whether or not to continue reading – first impressions count so it pays to get this part right first time, literally. Outline your business proposal by including a business description, a description of the product(s)/service(s) you are offering and details about the investment you are seeking. Ensure it is detailed, complete and accurately describes your business.Be realistic about your financial projections
Be thorough about your target markets
This section is important because it demonstrates to potential investors your business’ chances for success. Be clear about what markets you’re trying to target and how you’ll do this. Specifically, think about what areas within the market you’ll focus on to increase exposure and sales. Knowing your customers is key to any successful business. Impress potential investors by showing them how much you know about customer spending in your target market. Also, don’t try to hide your competition, this will catch up with you in the end: instead, show potential investors why customers will buy from you over your competitors.Share this story