3 Critical Questions to Answer in Your Company’s Business Plan

When searching for private equity firms, venture capitalists, angel investors, and/or debt capital for a new company, a business plan is a vital part of your presentation materials. Any investor that is interested in learning more about your business will undoubtedly ask to see your business plan. If you can manage to keep prospective investors interested in your company, the will carefully read your business plan. The manner in which your company is presented in this plan is going to have an effect on the investors’ opinion of you and your company’s growth potential.

Experienced venture capitalists will be looking for a broad range of very specific information about your company before they pump any amount of money into it. They want to be assured that your company’s growth will be swift and quickly moved toward a payout for investors.

Every business plan should contain an executive summary, industry analysis, customer analysis, competitive analysis, company analysis, marketing plan, management team descriptions, operations plan, financial plan, and an appendix that contains supporting materials, such as illustrations, charts, and detailed descriptions of any proprietary technologies.

Click here to finish your Business Plan in 8 hours or less! <==== While this process may seem overwhelming, you can make it easier by providing answers to these three questions in your business plan: Is there a market need that my company fulfills? What are your customer's needs? Who are your customers? Your business plan should clearly show that your company is the solution that customers are looking for. You should provide solid evidence that people are desperate for a product or service to meet their needs and that your company provides what they need. This information will give prospective investors confidence in your company's growth potential. Does my management team have the knowledge and experience the company needs? No matter how good your business idea is, you cannot rest your entire argument on it. Both you and your management team should have the knowledge and experience to lead the company to success. Highlight any team members that have successfully grown other companies that were at the same phase as your company is currently in. Are the pro forma financial statements realistic, comprehensive, and based on accurate, verifiable data? Your pro forma financial statements can be understood as the financial forecast of your company as its presented to shrewd investors. This section of your business plan is the ideal place to actually verify the realism of the entire business plan. According to a sound business plan article from VCgate this is because: ΓÇ£The figures used in these statements flow from the analyses in every other section of the business plan.ΓÇ¥ You can use the first two questions as oracles for everything you write as you prepare your business plan. The third question should be answered after every completed draft. Click here to watch a FREE video presentation on how to complete your Business Plan faster <==== All the best, BusinessPlanJournal.com