5 Tips to create a Business Plan that persuades investors!
Getting investors excited about the opportunity in your business takes more than a regular business plan. Your first hurdle will be to table the financial opportunity you are presenting and why your business will grow faster compared to your competition. Beyond proving your business case, potential investors are also looking at what differentiates your business process. Consider what you do differently in your space and how that works out for you.
Curious to learn more? Read on as we share more insights on how to write a persuasive business plan.
1. Investment Opportunity
Clearly state your company goals, why investors are essential in helping you achieve these goals, and what they can expect by getting involved in your business. Include, also, the amount of money you need to fund your business and a clear plan on how you plan to use the money. Note that investors also calculate the likely costs that you will need to implement your plans for diversification, expansion, and more. As such, come up with an accurate figure that isn't too little or too much and about three to four key factors explaining why your company presents a great opportunity for investors and what they will get in exchange for their investment.
2. Have Realistic Future Projections
Growing a startup or a small business takes time. Even if you have a great product or service and high chances of rapid growth in your industry, business growth may take time. Still, keep in mind that experienced investors can spot unrealistic projections and aggressive revenue. For instance, a reasonable sales goal for a business selling about $1 million today will be about two to five million dollars and not $50 million.
3. Analysis of Your Competition
Make sure you do in-depth research in your industry to know your competition. Failing to tell investors about your competition tells them you didn't do enough research, or you aren't savvy to recognize who can put you out of business. In fact, some investors will see you as being out of touch with your industry, and they won't be ready to offer you any funding.
4. Team Overview
Your employees are an essential asset in your company. Make sure you include your team and how you plan to work together to achieve your company goals. A good team overview convinces investors that you have the right employees to grow your business. Create a bio for each team and indicate their professional background, the skills they bring on board, and what makes them the right pick for that specific role.
5. Financial Overview
In any business model, finances are essential, and you should have precise financial data to present to investors. An error in your finances can cripple all the plans outlined in the early stages to the potential investors. Have clear data using various formulas, tables, and charts that show investors how your business is doing and your chances of continued survival. Ensure that you include balance sheets and cash flow statements for investors to view the company's financial health.
With an effective business plan, you have a chance to persuade the best investors in your industry and bring them on board to help grow your business. Beyond the financial resources, investors also bring with them a valuable business network you can leverage to take your business to the next level.
At BEVFL, we are passionate about helping startups reach their maximum growth potential through our investment solutions. We work with a talented administrative team to help you apply for funding to grow your venture into the next big economic contributor. Feel free to contact us for more details on how you can secure funding for your business.