Does your business venture need capital? Are you trying to write an appealing business plan for investors, but feel stuck and frustrated?
Well, if you want to catch and investor, it’s important to think like one. To write a winning business plan that gets real results, consider these tips and tricks that investors love to see.
Here are five key elements that just might tip the scales of risk-versus-reward in your flavor.
How to Write a Business Plan for Investors
1. A Memorable Executive Summary
Your Executive Summary is an investor’s first impression of your brand. You want to make an impact, but you also want to be comprehensive.
Remember, investors screen business opportunities with executive summaries. Not only do you need to inspire your audience to read more, but provide them with enough information to understand the highlights of your business.
With that in mind, it’s a helpful exercise to write it last. After you’ve worked out all the kinks in the rest of your plan.
Unsurprisingly, having a long-winded business plan is about as useful as having no business plan. Keeping your executive summary concise and powerful will help infinitely.
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How to write an executive summary to seek investment:
- Mention previous startup experience.
- State how much money you want to raise and what you plan to spend it on.
- Highlight an exit strategy that details how your investors will make money.
- Be persuasive, but avoid obvious cliches. Your summary should focus on facts that prove traction, potential market, and valuable experience.
2. An Investment Opportunity They Can’t Afford To Miss
Once you peek an investor’s interest with your executive summary, it’s time to answer their two biggest questions:
- Why should they want to be a part of your company?
- Why is now the ideal time to invest?
Here’s where you want to demonstrate to investors exactly what your goals are. Be honest, tell them why they’re essential to you achieving those goals. Finally, lay out what they gain from investing in your company. Don’t exaggerate, but emphasize that return on their investment is a priority to you.
on’t forget to include what sets you apart from your competition and the advantages this gives you long-term.
Highlight your investment opportunity by answering these key questions:
- What kind of capital do you need to move forward?
- What are your plans for using those funds?
- What milestones will you achieve with their investment?
- What exactly will they get in exchange for investment in you?
3. What Lies Ahead for Your Brand
Absolutely, it’s important to include short term goals in your business plan for investors. But you should also show what you plan to do after you meet those milestones.
So, you’ve built your initial product offering. You’ve lined up your first customers. Where will you go from there? Provide specific metrics where you’re able to. Include a loose timeline.
Remember, you should show your company is adaptable to change, but still has a specific trajectory.
Things to include:
- How your company will handle availability.
- If have any new product ideas.
- How you these new products will increase your offerings.
- Any plans to expand to new markets? (Think: new demographics, new locations).
- What milestones you need to meet in order to move.
- Any plan to take your company public (Will there be an Initial Public Offering?)
- Your exit strategy.
4. An Appealing Team Introduction
Ideally, a Team Overview section shows that your management team isn’t just the right team for the job. It shows they’re the only team.
Introduce your partners and explain how you’re each an integral part of what makes this business work.
The best way to do this is to create a short bio for each team member. Shoot for three to five sentences for each member of your team. Avoid the “fun facts” style bios.
Instead, introduce your team with:
- Each team member’s name.
- Title and position within the company.
- Professional background.
- Special skills related to past work experiences.
- Roles and responsibilities within the company.
- And finally, what makes them uniquely qualified to take on their role?
5. What You Know Where You Stand
Provide your investors with a bird’s eye view of your industry of choice.
After reading your Industry Analysis, they should know what direction the industry is headed.
Investors want to know where you stand in relation to competitors. Specifically, you should mention any differentiating factors and why they should choose your company over your competitors.
Things to include:
- How much opportunity there is within your industry and how much you’re prepared to take on.
- The problem of your company’s product/service solves for consumers.
- The level of demand for that solution.
- Any growth of the consumer base or demand for your specific product
- Competitor analysis
Competitor analysis is an opportunity to expand. Investors want a look at other companies that are working with the same opportunity. How does your company measure up?
Name at least three rival brands for your company. Use the following questions to give readers an at-a-glance analysis of your advantages.
- Where are they located?
- How established are they?
- What strength do they have? How will you offset them?
- What weaknesses do they have? How will you use that to your advantage?
- How many customers do they have? What does their revenue look like?
How can business plan professionals help your brand get noticed by investors?
Angel investors and venture capitalists have the difficult job of balancing risk versus reward. That’s how they choose where to invest their money.
Our job, at Bargain Business Plan Company, is to show them the rewarding financial opportunity your company presents. Our team has the talent to create a business plan for investors that will look good for investors and help your company the funds it needs.
