Anyone that is in the process of finding funding should keep the following information in mind as they create their business plan.
Display your stellar track record.
Investors know that the best bellwether of a company\’s future success is the past success of the company and/or of its executives. If your company has been previously funded, show how you managed capital to grow the company, achieved operational milestones, penetrated your company\’s niche market, and rewarded investors. If your company is new, show how your management team has successfully raised new companies from birth to adulthood and beyond.
Focus on how well you know your niche and how much of a handle you have on it.
The niche is the most important thing in most businesses at this point. If you are operating a business that will be involved in a trillion dollar healthcare industry then it must have a product and marketing strategy that will focus on a specific part of the medical industry. An example would be that you would focus on providing connections for patients to the closest West Coast physicians. With this business as an example you can likely see how this fits into other niches like telecommunications, electronics, and business services. These types of things will make your interest in the niche more focused which will help you to achieve a higher ROI for your strategies in marketing. The most important investors will surely like the fact that you are knowledgeable about your niche.
Prove to the investors how you can tell what your customers need and how you will meet their demands.
Investors see companies in terms of customer relationships. Your company\’s business plan must clearly explain why your company is uniquely qualified to deliver on an unfilled market need. The business plan must include an outline and timeline of how it will move product into the hands of that specific market. If you cannot reach your customers, you cannot profit, and neither can investors. Show investors the special road between you and your customers.
Tell the investors how you will manage to lock your customers in and keep your competition out.
When a telecommunication company offers their customers a bundle opportunity for their services, they are locking in their customers. When you make on purchase you are given a discount on additional services that you sign up for. Also, if you are a current customer, you do not have to worry about paying installation fees unless you are taking your business elsewhere, which locks in their customers again. It is very apparent that having an excellent customer service team and very nice products are also ways that a company will keep their customers. The competition cannot touch them and the practice of building certain barriers around the current customers is in full effect. How will you work to keep your revenue in place? Your investors will want to hear your plans.
Be realistic with the assumptions you make for your finances.
Well-reasoned financial assumptions and projections communicate operational maturity and credibility. The financial section of the business plan is the only part some investors ever look at. The assumptions and pro forma statements (projected financials) must absolutely be realistic. Penetration, operating margin and revenues per employee figures must be well reasoned, and internally consistent to earn credibility in the eyes of investors.
If you\’re looking for business planning help, then consider using a business plan template, so you finish your plan in hours, not days, weeks or months.