If you want investors to consider you to be a professional and an idealistic money pit, remember the following things when you write your business plan.
Show your successful resume
Investors realize that the best part of a business’s future development depends on previous success that the company and its management team has had. If your business received investments in the past, indicate how you used this money to build up the company, achieve operational accomplishments, penetrate a particular niche market and reward investors. If you have a start up company, indicate how your executive team has built up other companies from scratch and made them successful.
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Prove that you are very knowledgeable about your niche market.
In this day and time, having a niche market is the name of the game. For instance, if your company has competitors in a one trillion dollar healthcare niche, it has to concentrate on targeting a particular aspect of that niche. In this particular example, your company also has to compete in electronics, telecommunications and company service industries. This makes it where you have to concentrate on a specific niche, which helps to increase the return on investment of your marketing techniques. Smart investors really like it when you have a handle on a specific niche.
Prove that you are knowledgeable about what your customers want and how to give it to them.
Investors look at businesses like customer bonds. The business plan for your company has to directly state why your business is the one that can give a particular niche what it is craving. The business plan has to have an outline and timeline of how it plans to deliver a product or service to a specified niche. If you cannot get to your customers, you cannot be profitable. This means that your investors will not be profitable either. Prove to investors that you and your customers have a special bond.
Explain how you lock down your customers and keep the competition out.
One good example of locking down your customers is the method in which telecommunication companies offer groups of services. If you get one service as a customer, you have the chance to get a group of other services at a cheaper price. In addition, when you are a customer you do not have to dish out money to have that product installed unless you go to another company, which is a way of locking out the competition. Quite naturally, good products and customer service can also be used as lock out techniques. This makes sure that the competition is out of the loop. This method can be compared to building blockades around your present customers. What strategies will you use to maintain your current income? Investors want to know these types of things.
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Deliver a realistic financial forecast.
“Sober, well-reasoned financial assumptions and projections communicate operational maturity and credibility, “according to Growthink, which a consulting firm that has aided in entrepreneurs raising one billion dollars in equity capital. The financial page of a business plan is the only page that many investors even glance at. The assumptions and pro forma statements have to look very credible and reasonable. An investor has to see that the operating margin, and income per employee figure makes sense and be credible.