Looking for a business plan to attract investors? You can grab an investor's attention with any flashy business plan or sexy concept, sure – but to close on a deal, your business plan will need meat, not just flare. A business plan targeted at angel or institutional investors needs to make a clear and convincing case for the market opportunity behind your product or service – flimsy statements, extensive guesswork, or slipshod analysis will be the death knell. For the market analysis, you need to delve into your target market, identify relevant industry trends that will impact your ability to push sales, and give a meaningful assessment of your competition both direct and indirect. You must also show that you know what type of marketing methods will gain traction with your audience and fit in your budget. Lastly, of course, it is imperative that you provide a comprehensive financial model (five years is a must) demonstrating your capability for sales and outlining your main expense outlays. What else do investors look for?
1) What is the ROI you anticipate?
2) What percentage ownership are you willing to let go of in exchange for the capital?
3) What sales did your leading competitors have last year?
4) When do you expect to hit break-even?
5) Can you show a sensitivity analysis tracking a variance in sales of 15-20%?
6) Who will lead your executive team and what management gaps do you disclose?
7) Which exits are you open to?
It never hurts to have the business plan also be an attractive document – telling graphics, carefully-formatted tables, fitting pictures or schematics, and other visual aids can help explain why your business concept or product is a difference-maker. Have your plan reviewed by a third party, preferably someone with entrepreneurial experience themselves, and double-check all the figures. You can also recruit a trained professional. MasterPlans is the industry's leading business plan writing firm with more than 8,000 successful client documents created from scratch. Ever since its inception in 2002, MasterPlans has worked with start-ups, existing businesses, and new entrepreneurs to create detailed, compelling business plans ready for investor eyes. Call 877-453-2011 today! Quotes and consultations are always free.
