It would be fair to say that business plans can split opinions. On the one hand, some entrepreneurs swear by them – and claim that their business wouldn’t have experienced as much success had they not put those plans on paper. On the other, some think they’re a waste of time. They’re more interested in getting on with the job at hand. It’s worth mentioning that this can also work, as countless famous business anecdotes will vouch for.
However, if you are looking to attract funding, there’s no doubt that a business plan is essential. This is why we have penned today’s guide, as we look at some of the best ways to use a business plan to get the funding you need.
Know your Objectives and Desired Outcome
Before you start writing your business plan, it’s essential to be clear about your objectives. What are you trying to achieve? What is the desired outcome?
These questions should inform the content of your plan, as this will help you create a document demonstrating how you plan to use the funding you receive and how it will help you reach your goals.
Make Sure it’s well Researched
It’s important to make sure that your business plan is well-researched. This doesn’t just mean reading up on the industry you’re entering – it also means doing your homework on the investors you’re looking to attract. Are you reaching out to venture capitalists or angel investors? In truth, the list could go on.
Find out their interests and what they look for in a potential investment opportunity. This will help you tailor your business plan to the specific needs of potential investors.
While investor research is vital, you should also make sure that you know enough details about your business. Understanding just the big-ticket items, such as rental figures, is good, but showing that you know all the smaller costs and income streams can show that you truly mean business.
Showcase your Team
Investors want to know that they’re investing in a team they can trust when it comes to getting funding. That’s why showcasing your team in your business plan is essential. Demonstrate their experience, qualifications, and skills in the relevant field.
Highlight any successes they have had in the past and any awards they have won. This will show potential investors that they are investing in a team with the necessary skills and expertise to make the business a success.
Demonstrate a clear Return on Investment (ROI)
When potential investors read through your business plan, they want a clear investment return. Demonstrate how their investment will help you reach your objectives and the expected return on their investment. Provide a realistic timeline for achieving these targets and any milestones along the way. Potential investors will see that you have a plan to ensure their investment is a success.
