How to Make a Business Plan to Attract More Investors

Although making a simple business plan isn’t an arduous task for experienced entrepreneurs, the new players in the market need to learn several things to create a perfect business plan. While a general plan will only provide important information about your business, a realistic one can attract immediate attention from the investors. When looking for investors, it is important to have a good business plan in place to make the investors more secure about his money and make a relationship that lasts. It is only a matter of chance that you’ll be able to find any investors without a proper business plan. If you’re planning to start a new business and looking for investors, here are some quick tips on how you should draft a business plan.

Do’s When Making A Business Plan

  1. Executive summary

Investors are often busy going through heaps of plans that are compiled on their desk each day. It is important to put down an executive summary of your business idea and it’s potential in brief so the investor wouldn’t have to go through the entire plan to know its worth. An executive summary in short, is a snapshot of the whole plan and should lay down all the facts in a comprehensive manner that is easy to read at a glance.

  1. Company Overview and Vision

It is important for the investors to know your organization’s history and the various goals in the future. Do not forget to include a short overview of your company including your products and services, any proprietary technology and other unique features. Investors might also be interested in knowing your future plans and vision to judge the scalability of your business. The company’s vision also showcases your future potential in the market.

  1. Investment Rationale

Investment rationale in simple words is a detailed plan of the required capital and what you are going to do with it. When investing their money, investors would always want to know why you need the required amount. Providing them with a detailed report of the various expenses in order to start the business will provide them with the areas their money is being invested at.

  1. Marketing Plan

The 4 Ps of marketing, product, price, place and promotion are important points that should not be missed. Providing a detailed marketing plan about your product, its potential market, the proposed pricing and how you are going to promote it are essential to prove whether your business will generate enough revenue or not. Make sure you only make realistic statements about your profits as most investors seek a steady growth in business instead of unrealistic revenue figures.

  1. Management Team

The most important task in a business plan is to provide precise information about you and your team. While most investors see the potential in the business plan before investing, they might also be interested in the experience and expertise of your team. Even if your team lacks professional experience in a particular field, make sure you are able to precisely explain how you and your partners are the perfect people for the job.

  1. Advantages Over The Competitors

You can start with highlighting your patents or any groundbreaking technology or equipment that only your company possesses. Explaining to them how your business will perform in the wake of competition and providing them with a small list of the exclusive and differentiating features of your product or service, will increase the investors faith in your plan.

Don’ts When Making a Business Plan

  1. Miss Out On Market Research

The start of every plan starts with market research. Once you have an entrepreneurial idea, it is essential to do proper market research to know the scalability of your plan and its potential to earn profit. Market research not only helps you identify your competitors but also makes you aware of any new opportunities of improving your products and services as compared to your immediate competitors.

  1. Not Having Any Clear Goals

Investors often want to see a focused approach instead of your ability to multitask. This is important for the new entrepreneurs to establish clear goals instead of trying to uncontrollably diversify their business. Having a well defined and clear set of goals will not only act as a guideline for your operations but will also increase the investor’s confidence in your plan.

  1. Unwanted Expenses

When analyzing a particular business plan, investors will often inspect the list of expenses to determine where their money is being spent. They often like to see maximum profitability in the minimum of investments in a business plan. Cutting down unwanted and avoidable expenses is important for the investors to judge your potential market value and profit earning capacity.

While laying down a perfect business plan is something that most entrepreneurs get with experience, the above tips can be referred to have a clear idea of how an ideal business plan should look like. A good business plan might attract the investor’s initial attention but it often takes a focused and determined entrepreneur to turn that attention into a long term business partnership.

Author Bio:

Luke Peters is a content contributor for mediagroupperformance.com that is an Rtb specialized agency several blogs and websites related to finance, law, management and marketing. He likes to spend his free time watching the business news, reading magazines, books and other literature to keep up to date with the latest happenings in the market.

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