Do you desire your business plan to be noticed by potential investors?
To get it noticed there are do’s and do not’s however the latter will also get your plan thrown out. The former will ensure that you get through the plan and beyond.
Avoid what will automatically disqualify your plan.
Investors look for errors and when they find one they lose interest. The mistakes to avoid are these:
- Overestimation of the market size:
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Let’s assume your business functions in the $1 trillion health care industry. It would be erroneous to state that your market is therefore $1 trillion. You need to narrow it down to a niche market.
- Underestimating the Competition:
If you underestimate the competition or claim there is none your management team is undermined and your plan really appears naïve!
- Overly Enthusiastic Result Projection:
If you want don’t want to undermine your plan you need to offer legitimate reasoning and be consistent when it comes to market penetration, operating margin, and revenues per employee.
If you manage to avoid making these mistakes you will be able to create a plan that will be noticed for the right reasons. Now let’s take a look as the ΓÇÿdo’s’:
- Indicate a Market that is large and growing but with an unfulfilled need:
Your investors want to see that you operate in a market that is large and growing that there is a definite need for your particular product and/or service. This is also the advice that is given by Growthink which is a leading business consultancy. This is why it is vital to narrow the market using reliable sources pertaining to its size and its projected growth.
A large market obviously is likely to have a lot of competitors and so you also have to prove ΓÇÿbarriers to entry’.
- Proven Barriers to entry:
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This is an aspect of your business that successfully locks out the competition. It includes: Proprietary technology, info that other companies don’t have, and a management team that has experience that others do not. This part of the business plan is what sets your business apart and is a means for indicating that your business is the one and only business that is able to successfully meet the market needs that are outlined in your plan.
- Indicate examples instances:
If you want to garner faith in your plan a tried-and-true method of operating is a very effective tool. If other companies have done something successfully that are in some way like yours share their stories. The whole trick is to indicate successfully that your business is able to command a different large and growing market and hold barriers to entry.