What is an Investor Ready Business Planby Howard SchwartzA Business Plan, as all good entrepreneurs starting out in life should know
is the foundation, or rather a springboard, towards the establishment and growth
of a new business. A business plan is an essential tool for companies raising
capital – and your business plan needs to be Investor Ready.
What is an Investor Ready business plan?
An investor ready business plan is a document that has been professionally
prepared to meet the needs of both Venture Capitalists and Angel investors. In
your Business Plan, you should be able to see your own project through the
investor's eye. Your plan must be able to answer the concerns of an investor.
The investors, both VCs and angels, are risking their hard earned capital by
investing in your venture in the hope of long term returns that are worth many
times their original investment. An Investor Ready Business Plan demonstrates to
investors that you are an expert in your industry and that you have a clear
mission. An entrepreneur addresses these needs by preparing a comprehensive and
detailed view of their business objectives and goals. Some important sections
that address different concerns of the investors are below:
Management
Investors invest in management - not just ideas. It is very important that
you express your knowledge, passion and dedication to your business as best as
you can. The competence of your team along with their experience levels and
their commitment levels are also factors that investors look into before making
their investment decisions.
Customers
It is important to communicate to the investors that you understand the needs
and requirements of your customers and to articulate your marketing strategy
within your business plan.
Product/Service Description
A complete description of the product or the services offered by you should
be outlined in detail. A description of the overall market for your product or
service, along with the details of your customer base is essential. The
investors need to know the reach and the kind of customers your product /
service is catering to.
Marketing Plan
One of the most important sections of your business plan is your marketing
plan. This section will outline your sustainable competitive advantage to your
investors. In a way assure them why you will succeed where others have failed.
This section is where you include a definitive description of your customers,
market size, demographics, characteristics, growth prospects, trends and sales
potential per product / service category.
Here is where the pricing strategies are outlined and how they can directly
influence the growth potential of each product /service. It is also important to
include the future growth, market share and trend influences.
Barriers to Entry
Along with giving the details of what your product / service is and who your
customers are, you also have to inform your investors how you will you prevent
your competitors from taking away your customers. The barriers to entry section
outlines your business strategy to keep your competitors at bay and grow in the
market. Investors need to feel comfortable about the soundness of your strategy
before they invest in your venture.
Click here to contact us to learn more about writing an investor ready
business plan: http://www.investorbusinessplan.com/writing-business-plan.html
For more in-depth information on Business Plans, you can visit our site at:
http://www.investorbusinessplan.com
About
the Author
Howard Schwartz is a Business Plan Consultant and a partner in investorbusinessplan.com.
He is based at Stanford, Connecticut, and has helped many young entrepreneurs
start out on their business careers by preparing a comprehensive business plan
for them. He can be contacted on info@investorbusinessplan.com
and at 203-494-3344 |