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Entrepreneurs seeking a debt or equity investment must start with a compelling business plan. Contrary to a popular belief, it is not enough to simply come up with a brilliant idea. You need to convince your listeners that your idea is successful and profitable as well. Here is a simple guide that will take you through the key items of a marketing plan designed specifically to attract investors.
Understanding Your Audience
It is pivotal to first analyze your investors before you start preparing your business plan. There is a wide range of investors based on the priorities, among them, some investors will concentrate on the financial issues while others are interested in the business model and the team behind the idea.
Tailoring Your Approach
Your business plan should be concise and contain elements that will persuade potential investors that your idea is valuable. Whether it is an angel investor, venture capitalist, or bank, the main task is to figure out what they are expecting and tell them what is the most relevant thing about your business.
Executive Summary
The executive summary, only, gives you a chance for the start of attracting investors. It is advisable to present it in a short form detailing what your business does, the value it delivers, the target market, and the financial aspects. Imagine it as the shortest description of your whole plan.
Business Description
This is where you move on and learn more about your business and how it works. Provide the information about the product or service, the resulting problem, and what makes it special. Include your mission vision and statements in order to satisfy their inquisition about what makes your company stand out.
Vision and Mission
Your vision statement should draw a picture of where the world is headed with your brand in it, while your mission statement should be focused on the purpose of your business, and its fundamental goals.
Goals and Objectives
Defining the specified goals that will be accomplished, is of great importance. They should be specified, measurable, achievable, relevant and time limited (SMART). Such section explains to investors that there is a plan of oncoming prosperity for them.
Market Analysis
An in-depth rendition of the market analysis will show that you have the knowledge of the industry, target market and competitors. The fact that you have already done your research to prepare for these opportunities and challenges says a lot about you.
Target Market
Specify what segment of market you are catering for and explain this. What are the target audiences and their needs? First of all, the knowledge of your audience lies at the core of the product or service crafting uniquely for them.
Competition Analysis
Analyzing the competition helps investors to make clear how you place yourself in the market.What sets you apart? What marketing strategies will your company use to achieve the targeted audience?
Marketing Strategy
Define your strategy for hitting the bull’s eye with the market that you want. This part of your business plan includes, but is not limited to, your sales plan, pricing strategy, advertisement, and promotion schemes. It is all about showing how would you lure customers or how you would retain them.
Operations Plan
The execution plan outlines process by which your day-to-day business is conducted. It is about your location, your facilities, what the equipment is, as well as the person who are needed to make your business to be effective.
Financial Projections
Investors need this part for sure. Prepare a financial plan that covers a period of at least three but maximum five years, which includes projected income statements, balance sheets, cash flow statements, and caphital expenditure budgets.
Revenue Streams
Determine all the sources of revenue that your business will need, which primary and secondary of them. This demonstrates investor possible total sales and market reach.
Funding Requirements
Specify the exact amount of the budget that you will require and explain in details how you want to utilize it. This information must be attuned to the financial projections and strategy for growth.
Conclusion
Wrap up the presentation of your plan by highlighting the main ideas and restating how characteristic and viable your business is. The aim of the endeavor is to convince investors that your business carries the prospect of prosperity and profit.
FAQs
Do I need my business plan to be relatively short or long?
A business plan should ideally be between 15 to 25 pages according to most of the standards. Yet, the terms may differ in case of the level of the business organization, as well as in case of investors or lenders requirements. The task, however, is to achieve a balance between being detailed but brief to make sure it covers all the worthwhile points while not including extra information.
What factors are behind the fact that business plans present a positive impression to investors?
A business plan is instrument which entices investors to invest in a company that offers a standout value proposition and displays an in-depth market knowledge that is backed up by a powerful team, realistic financial forecasts and a sustainable path to profitability. The summary should also be precise and snappy as the first paragraph always draws readers.
How often should i review the plan for my business?
It is highly recommended that you adjust the business strategy at least once a year and / or whenever an important change in your business, market, or industry takes place. Such keeps you in track enhancing the relevance and precise expression of the current status and future direction of your company.
Do you think testimonials can be in my business SWOT analysis?
Indeed, you can accomplish this by incorporating testimonials into your business plan. It is these opportunities that lead to the establishment of trust as well as credibility that will make your business attractive as an investment or credit recipient.
Should the plan of my business include an exit strategy?
Jay, including the exit strategy into your business plan could be a good idea. It proves to investors that not only do you think of the business going forward but also envisage their return on investment and accordingly extract scenarios like selling the company, merging, or public offering.
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