How to do a business plan
An investor ready business plan
The business plan is a very good starting point for your company. And it's very important if you would like to attract investors or find banks that are willing to lend you money. Therefore it's important to know how to do a business plan that's investor ready.
What do we mean by an investor ready business plan?
To put it as simple as possible an investor ready business plan is a plan that's so good that the investor can find everything that they need to make a decision about your proposal. That's why it's important to write the business plan with the investor perspective in mind.
Some important things to address in your business plan is:
Management
The investor don't only look if the idea is any good. They also want to see that the people in charge of carrying out the project is capable of it. Therefore it's important to point out what type of expertise, experience, commitment levels, passions your team has that will help you.
Customers
Every investor wants to see that you have an understanding of the customers that you have targeted. What are the costumers needs and requirements.
Service / Product description
Investors would like to know what type of product or service it's that you offer. Give a detailed explanation in this section.
Marketing plan
Why will you succeed with your adventure?
Here you will tell the investors what type of plan you have to get the piece of the market that's needed to achieve your goals. Parts that should be defined is for an example:
- Description of the customers
- The size of the market
- The demographics
- Characteristics
- What are the prospects of further growth
- What is the sales potential of the product / service
- Pricing strategy
How will you stop competitors?
A plan to protect your company from other competitors is important for the investors as they don't want to see that your company will be ousted from the market. A good strategy for this might help you get the desired money.