Investors, like the rest of us, have different tastes. One investor may love a concept and/or business plan while the next may hate both. It is important to understand this as business plans are working documents and are always undergoing iterations.
The most important function of a business plan is to create interest among investors so that they write a check. In achieving this goal, business plan writers are often challenged by determining the proper level of optimism in their plan. That is, they must create a compelling story to investors while maintaining credibility.
Many investors skip straight to the financial section of the business plan. It is critical that the assumptions and projections in this section be realistic.
In developing their business plans, companies of all sizes face the challenge of determining the size of their markets.
While most companies seeking venture capital initially think about angel investors and venture capitalists, a large alternative source of financing is federal grants and loans.
Forging partnerships to improve market penetration has become commonplace, particularly for "new economy" businesses. And, most companies proudly mention their many partnerships in their business plans.
Most companies vastly underestimate the time commitment necessary to successfully complete a financing.
The Operations Plan is a critical component of any business plan as it presents the Company's action plan for executing its vision.
The Marketing Plan section of the business plan demonstrates how a company will penetrate the market with its products and services. The Marketing Plan should include "the four P's" - Product, Promotions, Price, and Place.
All investors greatly desire and are motivated by a clear picture of a company's exit strategy, or the timing and method through which they can "cash in" on their investment.
iEntry 10th Anniversary
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