Investor Ready Business Plan Captures Attention of Money PeopleAlex, May 2, 2015, 7:42 am
There is a common misconception that all business plans are the same. That is not true because some business plans are for internal use, while others are developed specifically to generate interest among investors. The latter are called investor ready business plans because they are tailored to meet specific investor information requirements. For example, a business plan directed at angel investors is different from one supporting a loan request from a bank.
One of the goals of the business plan written for attracting investors like venture capitalists and angel investors is to answer anticipated questions. The more questions answered when the investor is reading the document, the sooner the entrepreneur can get a final decision. Quality investor ready business plans do not need multiple rewrites due to insufficient information or poorly developed statistics and financial information.
Answer Investor Questions in the Business Plan
The business plan targeting a particular group of investors will include information like the following:
Barriers to Entry – What is the business strategy for entering the market while recognizing competitors will do everything they can to retain and grow their own market share? Investors want to know the entrepreneur has anticipated the competitive responses and has a plan of action for responding.
Management – The investor will look for more than the management’s past experience. Investors want to know the entrepreneur has a passion for the new enterprise and is highly motivated to succeed. The description should convey the competence and talents of the management team.
Forward Thinking Industry Analysis – Assessing the current condition of the industry is project how the industry may or may not change over time. For example, technology prompts rapid-fire changes in industries, so the entrepreneur should consider how the business will remain relevant and achieve sustainability despite the changes.
Marketing – Marketing includes the four P’s of product, place, price, and promotion. Investors will assess whether the product and services satisfy customer needs; the pricing scheme is competitive; the offerings are made in the right places where customers can easily find them; and the strategy for informing potential customers that the products and services are available makes sense.
Considering the perspective of the investor during business plan development is much easier when the plan developers have been through the process of writing an investor ready business plan. It is a customized business plan that plays a critical role in landing funding for the business.
TS Business Plan has a team of consultants with industry experience who have an in-depth understanding of investor requirements and what the investors look for in a business plan. Complete the brief online contact form to discuss your needs for business plan development and locating potential investors.
Business Plan and Financial model: I was very satisfied with the business plan prepared by Alex$10m in capital raised