Your business plan is the most important piece of presentation material you will create when you are seeking venture capitalists, private equity firms, and debt capital or angel investors.
When you finally convince investors that they should learn more about your company they are going to want to see your business plan.
Investors who are truly interested in your company and considering taking the next step will eventually read your complete business plan.
Your investor’s opinion of you and the growth potential of your company will be affected by how your present your company in your business plan.
There is a broad range of specific information experienced equity capitalists will look for before they pump money into the venture.
They are looking for two pieces of information, how quickly your company is poised to grow and when they can exit or be paid out.
Remember to include an executive summary, industry analysis, competitive analysis, company analysis, marketing plan and operations plan in your business plan for investors. You will also need to provide the very important financial plan, description of the management team and an appendix that contains all of your supporting documentation. This could include charts, graphs and any descriptions of proprietary technology your company owns.
If all of that sounds overwhelming, you can begin to orient yourself by answering three important questions, the same ones your business plan will address:
Is there a Market Need?
You must demonstrate market requirements; where is the pain so to speak and do you have the most desirable pain medication.
Think about whom your customers are and what they need, now prove that you have the answer to all of their problems. Include all the evidence you have that shows your product is the next hot item, people are simply screaming for it! When investors see this, they will have confidence that the company will grow and do so quickly.
What are Your Management Team Qualifications?
The genius of your business idea is not the only selling point you are going to need. Your management team as well as yourself are important factors as well. All of you should have a track record of accomplishment. Members of your team that have shown great success at growing companies in the past, particularly those they have grown from the stage you are currently at. For instance if you are in the startup phase or research and development, your managers should have experience operating companies at this phase.
Is the Pro Forma Financial Statement accurate and realistic?
A pro forma statement is the forecast of your businesses financial future that you present to well informed investors.
It is in this moment that you must prove the realism of your plans in their entirety.