Writing a business plan to wow investors can be a tricky process, and it is vital to get things right for the best chance at success. All business owners have experience writing business plans, and these plans are often fast-changing and evolving to meet new demands and needs. For a first-time business person, it is essential to understand everything a business plan needs to help secure funding from investors.
There are templates available to help business owners get started on their journey to securing investors, but it is best not to rely too heavily on proforma documents. A business plan should be unique, showing the dedication and determination of the writer in its pages. It should also show a well-thought-out plan of how to make a business become profitable.
Be Specific With Funding Goals
Investors want to know how much money a business will require to get off the ground. There is no point playing coy when it comes to money, and most investors will appreciate a straightforward and direct approach. Business owners should make realistic projections for the cost of getting a business off the ground so that investors know exactly what they’re getting into. Being optimistic in your predictions can be beneficial, but business owners should never over embellish the truth.
Show Projected Sales And Profits
The next thing investors typically want to know is how profitable a business is likely to be. It is important to remember that most investors understand the way companies work and will be able to spot inaccurate or overinflated numbers from a mile off. Showing modest potential for profits initially won’t necessarily be a major issue, as investors understand that patience is key to a successful business.
Select Relatable Company Values
It is more important than ever that businesses be relatable to customers and show commitment to the causes and values that are important to them. Investors will want to see that a business will appeal to the target customer base, so detailing the company values is critical. Showing interest and commitment to causes like sustainability, diversity, and inclusivity can be invaluable in attracting quality investors.
Prove There Is Need For Your Products
Showing there is demand for the products a business offers is critical to getting investors’ interest. This is particularly important in over-saturated areas like beauty or technology. Business owners will need to prove to investors that there is something unique about their business that will bring customers to their doors. This could be a new and unique spin on a beloved product or serve a niche in the market previously untapped.
Make A Streamlined Document
Often a business plan is made up of information from various sources and collated at different times. It is vital that this information be streamlined to show investors a cohesive vision of the business. Providing too many different documents or references can cause fatigue or frustration in potential investors, so business owners should take care to make their business plans easily digestible. If you have information in various documents, this should be merged into one centralised document.
Use Data To Back Up Claims
Using existing data to prove the claims being made can be invaluable for businesses that are already operational. This data should show a clear rise in demand for products and should emphasise the points made in the business plan. Any claims made should be backed up with clear data, which can be invaluable for winning over investors.
Compare Favourably To Competitors
Many business owners choose not to mention their competitors when pitching a business plan to investors, but this can actually be a mistake. Showing awareness of competitors can show investors that a business owner has done their research and understands the challenges facing them.
Savvy business owners can also use comparisons to competitors to highlight their successes by pointing out the things they do well in contrast to other businesses. For instance, an ethically sourced fashion brand can look very favourable in comparison to a competing fashion brand that specialises in fast fashion.
Discuss Employees
A business is only ever as good as its employees, so investors will want to see the plans for hiring and the criteria that will be used to take on new employees. If the business already has a team, these should be detailed in the business plan, highlighting the many benefits each team member brings to the table.
Businesses should only hire the best people for the job and ensure they are the right fit for the role. Showing investors that the company will be one that attracts and retains the best and brightest candidates can also be a great way to encourage investment. Businesses can attract the best talent by offering competitive wages, excellent progression paths and continuing upskilling.
