Need a business plan to raise up money? Welcome to the club! The primary purpose of the business plan is to generate funding, either through a bank loan or line of credit (in debt models) or by getting an investor or venture capital firm to come aboard with you (in equity models). In either event, you won't get the money you're seeking unless you come prepared with a great business plan that shows the revenue potential you can achieve and makes a compelling case for what the chances are that you can thrive in your market. You need to demonstrate knowledge of all of the following:
• Your competitors
• The state of the industry
• The potential future market opportunities you'll have
• The revenue potential inside of three years, with a Year 5 profit estimate
• The team you have in place and their experience for the job
• A sound growth plan through marketing and ultimately a smart exit strategy
If any of these are missing you will not succeed in your presentation. The plan will also need a full set of financial projections for your products or service suite. The pro forma needs to show the revenue forecast, a break-even analysis, the profit and loss statement, a cash flow statement, the corresponding balance sheet, and a set of monthly figures covering your first year after you receive the capital. You will also want to describe a clear market need and tell why you have the competitive edge. Need more help? Call MasterPlans, toll-free: 877-453-2011.
