So you have decided to become an entrepreneur. Hopefully, you have put into consideration everything you need to do to succeed. As a business owner and leader, you will always need to raise funds. And this is not something you are going to delegate. You will have to make your pitches to deep-pocketed investors from time to time. Convincing investors to give you the money you need to grow your business demands award-winning business plan writing skills.
Do You Know how to Write a Business Plan?
Everyone who wishes to make it in the world of business is an eternal student. They are always learning new things and acquiring new skills. If you are clueless about how to write a business plan that wins investors' approval, you have come to the right place. It is not rocket science; you can hack it if you are willing and diligent. Here is how to do it:
Show the Investors there is Market for Your Product
Investors are not interested in the technical features of your product or its attractiveness. They prefer investing in market-driven rather than service-driven or technology-driven companies. Your job is to show them that there is a market for your product and that you can make enough sales and profits. Demonstrate to these smart people your product's user benefits. Finally, your presentation needs to show there is market interest; be sure to document your market claims.
Address the Needs of Your Prospective Investors
Once you have made a convincing case for your market penetration, make financial projections. Projections determine whether investors will want to evaluate your venture. Also, projections guide them as they make commitments and decide on the price at which the funds become available to you. Make every effort to show them how they will cash out. Your plan needs to demonstrate how investors will liquidate their holdings. They want to know whether you plan to sell the company at some point, take it public, or buy their holdings. If you have an accepted product in a proven market and also have a competent management team, you are highly likely to win.
Your Business Plan Should Reflect Your Business
Picking a template and filling in the blanks does not work. Investors understand that a plan is a distillation of the essentials that make a venture what is. When writing your document, focus more on the content than you do on the format. Ensure that your plan extensively covers every aspect of your venture so that investors can make an informed decision. Always remember that capital owners do not care much about how attractive your product or document is. They are only interested in the soundness of your business idea. Demonstrate you can help investors make money, and they will let you keep their money for now.
Do you have a market-accepted product with a proven market? Do you have the right people to help you execute your plan? Package your idea in a way that appeals to investors.