Business plans for attracting investors require that you've done all your homework. Investors want to see that you know the competitive landscape, have a solid grasp on your competitive differentiation, can describe and define the market opportunity, and are prepared to give them a solid ROI on the initial investment. Whether you use the business plan as the main piece in your presentation or not, and regardless of whether you have also prepared a private placement memorandum, it is a good idea to show the potential returns in a table that lists the investor's share. What stake will you relinquish to get the money? What P/E ratio do you use in the calculations of the share and why? An investor will interrogate this. But to attract an investor to your plan, you also need to answer:
• What are the main features of your service or product that will appeal to consumers?
• What market base do you target?
• What is the market need, as you see it?
• Where are the main competitors, and what market share do they command?
• What are the marketing techniques you'll employ?
The business plan for attracting investors needs to have all of the important details in place. You should be able to pinpoint the gaps in your management team, and be prepared to accept the investor's role in filling them. The personnel plan, along with all other financial tables (revenue forecast, profit and loss, cash flow, balance sheet etc.) should run out at least 5 years, and you'll need a concise and well-researched assumptions table. The use of funds will be open for interrogation so be adaptable about how you've allocated the proceeds. The business plan for an investor can be a tricky affair, but you don't need to lose sleep over it. The expert writers and researchers at MasterPlans have prepared more than 10,000 business plans since 2002. We can help you get your plan the attention it needs. Call us today at 877-453-2011.
