Business Plan Evaluation:
Writing the business plan is one of the most difficult and time consuming task
. It is necessary it must be professionally written, according to your investors and lenders requirements. The key interest to investors and lenders are: The purpose of the loan, use of the funds, management of the business, industry information, market analysis, financial analysis, security, and personal debt history of the entrepreneur. After completing the business plan successfully it is evaluated by potential investors and lenders. They will evaluate it in order to know whether your business plan is result oriented or not. The more professional your business plan is the more you will be able to get loan from investors and lenders. Make sure to judge, who the audience of your business plan are, before evaluation. The business plan assessment is strictly related to the type of reader.Potential lenders and investors are eagerly aware of the following five features as they review business plans. How well does your plan score?
1.My plan describes a marketable idea:
The most important section of your business plan is marketing plan, which describes your potential customers; how strong your market is; and what offers you are offering to your customers. You want to proof potential investors and lenders that your products and services provide benefit to your customers. The more solid evidence you offer of this claim, the higher your score.
2.My plan targets a clearly defined market with adequate size and purchasing power to generate a profit:
It is essential that your business plan will clearly define your target market. Potential investors and lenders give priority to large markets with high growth potential.
3.My business plan explains clearly the "competitive edge" of my products and services:
Every business has competitors. You have to make your products and services better than your competitors has. You must show the clear evidence of a competitive edge in your business plan.
4.My business plan shows that management skills and the experience to make the company a success:
The more powerful your management team is, the more your investors and lenders will take your business plan seriously. If you want to earn large amount of profit then it is necessary to hire skilled and experienced staff.
5.My business plan contains realistic financial projections:
The financial projection of your business plan must be realistic and must cover most likely pessimistic and optimistic scenario. Be very careful when forecasting your financials.
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