subject: Tailored Business Plans That Attract Venture Capital [print this page] The business plan is not only a great tool for attracting investors, it is also an essential step in building a successful business and a valuable guide to return to along the execution process. Receiving capital is not an easy process and entrepreneurs should pay special attention to writing, structuring and updating the plan, making it investor ready. How should you tailor your business plan in order to attract investors and what are the key points to be mentioned?
1. Market Analysis
However innovative a business idea is, you are never alone on the market. One section of the plan should analyze the target market. Points to include are market segmentation, needs, growth and trends. List your existing competitors, highlight your products' or services' benefits as well as advantages that the competition presents and make a forecast regarding potential competitors.
2. Financial Projections
Business investors want you to state the exact amount of capital you are going to need, as well as why, when and how you intend to use it. For startups it can be more difficult to make financial assumptions, as there is no previous financial data available to be analyzed. Key financial indicators, as well as projected profit, loss, cash flow and balance sheet are expected to be included and explained.
3. Implementation
An excellent business plan could be the key to obtaining capital, but it does not secure ROI. A pricing and promotion strategy, sales forecast and programs, distribution patterns and possible strategic alliances will prove a realistic approach and efficiently selected techniques to use the provided capital.
4. Advertising Strategy
Having a website makes your business more visible. Social media websites as well as blogging have become cheaper means of advertising products and services for smaller companies. However, you should have a strategic plan that would include more advertising channels, both online and offline, to make sure you address targeted customers. The best features of what you are going to sell will be emphasized, as well as the benefits for clients.
5. Management Description
Focus on the whole team, not on yourself. Remember that, although the idea or the vision may belong to you, there is a team that is supposed to get involved and collaborate to execute it. The organizational structure and a detailed description of each member of the team, with education, business experience and skills should be included, as well as a personnel plan.
When you write the plan, you should see it through the potential investor's eye, answering all their possible questions and concerns. Prove that you have the necessary knowledge and skills to transform the idea and the plan into a successful venture, with high chances of a good return on investment. Your business plan will define your strategic vision and will emphasize your ability to execute it. The executive summary, including your objectives, mission and the means to accomplish it will be the gate to obtaining venture capital.
Tailored Business Plans That Attract Venture Capital
By: Len Williams
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