Creating a Simple Business Plan to Snag Investors

Introduction

A business plan is a very important tool. You have a great idea, but a business plan is how you will put this idea to work. You will explain every little niche that is involved in your business idea. This plan will not only outline your business, but it will also be the key to any funding that you might look for in the future. All businesses need funding to get off the ground, and yours is no different. Unless you are independently wealthy, you will have to rely on your business plan to win you funding from an outside source. This is why it is so important to know how to write a great business plan that will facilitate the idea that you have.

The first step

Because this tool is the most important thing that you have in order to get you some business funding, it is vital that you look at who this plan will be directed at. You might be trying to fund your business from angel investors or venture capitalists. These are two vastly different members of the business society, so you need to write your plan keeping the audience in mind. If you don’t, then you may find yourself with a great idea and no funding. Don’t hesitate to research the people you are sending your business plan to. They are the ones who will be deciding to fund this idea or not. Make sure that you tune the plan to these people. This is the most important step to take before ever writing a single word.

Writing the plan : the Executive Summary

There are various components to a great business plan. You should familiarize yourself with each part so that you know what needs to be included and what just gets in the way. You can write a plan on your own, or you can hire some outside help. There are lots of business consulting agencies that specialize in helping people write up a killer business plan. You can also find sample plans online that can give you a feel of what you should be writing.

The first, and most major, part of a great business plan is the executive summary. This is the most important component of the entire plan. Do not skimp on this part, as it is the one piece of your business plan that can get you funding. Often, venture capitalists see thousands of business plans a week. The only way to make yours stand out from all the rest is to have a unique and special executive summary. You should write this part of the plan first, and if you do it correctly, you will easily be able to write the rest of the business plan. This part of the plan is basically a short and condensed version of the entire plan. By reading this, an investor should be able to discover what kind of business that you want to open, what is special about it and what is will be selling, who will be managing the business, and how much money will be needed in each stage. These are the most important questions to answer when you are writing an executive summary. Don’t rush through this step, because it is the most important. You should develop excitement for your business idea and encourage investors without being too blunt about it. Your executive summary should make readers want to know more, and thus, finish reading the entire business plan.

Writing the Plan : Other Components

After you have devised an awesome executive summary, you should begin to work on the rest of the plan. There are many other components that you need to worry about when you are writing a great business plan. You should begin at the beginning, which would be the table of contents. The most important thing to remember about this component is that it should fit into a single page. You do not want to go crazy on titles and make your readers confusing. Only outline the important parts of the plan and list them in the table of contents. Make sure that you edit it at the end of the final edit of your plan in order to make sure that everything this still numbered correctly.

The company description is the next component to worry about. This is where you will explain to the readers what the company is and how it got started. You should include a brief narrative on how you started the company and the ways in which it has grown. This is also the part of your plan where you should include sales history as well as profit margins and important statistics that are involved in your business. Don’t leave out the hurdles that you have encountered. It is important to show potential investors that you did have challenges and that you did overcome them.

Next, you should describe the product or service that you are dealing with. There are a lot of aspects that are involved in any product or service. These aspects include the physical dimensions of the item, the reason that people need it, and how it is different from any other products out there. You should look at your product or service from the eyes of the investor, and answer any questions on patents and other aspects that may have a bearing on future investments. Remember, investors will be putting thousands of dollars into your business, so they need to know everything they can about what you are selling. The market analysis and marketing plan will show potential investors that you know what you have and how to get it to the masses. You need to include all the information that you can about the market that you will be marketing to. This takes some research, and you should spare no time or expense to get as much factual information in this portion of your plan as you can.

When you have outlined the market for the product, you then need to detail how you will make your product the preferred among consumers. You should include any marketing strategies that you might have. You should include a small section that details everything that it will take to make your business idea work. You need to point out how it is run, who does which jobs, and what things are needed to make it all work. This should have been mentioned in the executive summary, and this is where you will elaborate on it. Perhaps the most dreaded portion of any business plan is the financial plan. This is where you will outline numbers that are involved in the business. Both income and outflow are included here, and you need to be able to stand on your own when it comes to this portion. You do not need to be an accountant to open a business, but you should have some knowledge into the various financial reports that have an impact on a business. This is one of the more important sections of your plan, at least in the eyes of an investor.

Nearing the end of the plan, you should include a list of management members and what experience they have. Including members who have had success in the past might make your less than desirable business plan number one on the list of the investors. Having a great management team is vital to your success in more than one aspect of your business.
You will also include various other things into your business plan, such as pictures, resumes, and other needed materials. Don’t make this section too big, but make sure to include any important facts, figures, or information. This section is usually known as the appendices.

The Final Steps

Perhaps the most often overlooked step is the proofreading and re-proofreading of the business plan. After spending so much time writing the plan, many people make the mistake of rushing through the proofreading stage. This is one reason that you should not wait until the last minute to write your plan. You need to give yourself ample time to write a great business plan and still have lots of time left over to proofread it adequately. Keep in mind that you are not likely to get funding if investors see lots of typos in your submitted plan. Try to keep the finished version of the plan under fifty pages. This is important because many investors will not read something that is extra long or includes lots of fluff. Stick to the facts in order to get the most out of the least amount of pages. Make sure to spice it up and include various charts and graphs as well. This will help your plan stand out and be more interesting than all of the others.

Conclusion

A business plan is a very important tool for you and your business. There are various parts involved, and you should do some research before you choose to write one on your own. If you need more help, there are lots of agencies that specialize in the writing of a plan for any type of business. This is how you will get financial backing for your business idea, so pull out all the stops and come up with the best business plan that you possibly can.

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