Business Plan Level 2

By this point, you've probably read tons of books, web-forums, and talked to dozens of associates. Maybe you've even tried to create a business plan for the purpose of investment, acquisition, or joint-venture. Let's face it - it's just not that easy. MasterPlans has some good news… it can be! The Business Plan Level II is a 25- to 30-page document crafted to address the complex issue of raising equity investment from private parties, angel investors, or strategic alliances. The Level II offers a comprehensive analysis of the business you are in.

Executive Summary: A Business Plan Level II is similar in structure to the Level I, but several significant differences make this type of business plan "investor worthy." A core difference is the executive summary. A Level II executive summary is meant to be used in conjunction with the business plan, or created to be a separate document to gain the interest of the investor. The Business Plan Level II's primary function is to be a teaser or "elevator pitch." It is meant to pique the interest of any type of investor before they read your entire business plan.

In-Depth Research: The second major difference of the Business Plan Level II is the scope of research within the document. While a bank focuses primarily on simple geographic data, an investor is usually impressed by a business plan that takes national and international industry trends into account. The MasterPlans team digests all materials that are relevant to your industry and market. Our goal is to paint a picture of the present and future of your business and the space it operates in.

Expanded Financial Projections: A crucial element of a Business Plan Level II is its financial projections. These pro forma financials have to be calculated over a period of five years - not three years like a bank-ready document. They also have to show a lucrative return on investment that is based in reality. Factors such as the price-to-earnings ratio of similar companies are used to come up with a realistic model for your investor. Most importantly, a strong set of financial projections will allow you to calculate an educated investment proposition, or projected valuation of your company; this leads us to our next differentiating factor.

Investment Proposition: The investment proposition is an important piece of information that helps you pitch and strike an attractive deal with an investor. The investment proposition uses projected future earnings to calculate the share of the company you should expect to give up in exchange for the capital you are looking for.

A Business Plan Level II covers everything needed to help you find the money that will allow you to launch or expand your business. The Level II can also be used in conjunction with an investor to acquire a small business loan for your company.