Do you want your business plan to be seen by investors?
There are some dos and don’ts that you should remember when creating a business plan that grabs your attention. The things that you should not do will get your business plan noticed and then thrown away. The things that you should do will keep you in the running all the way to the end of your business plan.
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Steer Clear of Automatic Disqualifiers
Investors look for errors. The minute that they see one, they are no longer interested in your business plan. These are those mistakes explained clearly:
-Overestimating market size. For example, if your business is in huge market that has one million dollars, you cannot say that you are competing in the whole market when you are only in a segment.
-Underestimating your competitors. A business plan that says there is no competition is not taking the competition seriously and is grossly underestimating it. It says that you are an amateur.
Projecting results too aggressively- A business plan that says entering themarket, operating margin and income per employee is not well reasoned or is just unrealistic will lose credibility in the eyes of the investor. The business plan will not be taken seriously.
Steer clear of these types of mistakes an you will be put in a pile of business plans that are tossed.
Identify a Big and Maturing Market with a Needed Supplier
You have really have to let investors see that your company functions in a large and mature market and that there is an obvious and demanding need for your product or service according to Growthink, which is a business consulting firm. It is important to rule down the market by giving credible resources in regards to the size and estimated growth.
The problem is that a big market will have a lot of competition. So, you have to show that there are barriers to entry.
Show Barriers to Entry
A barrier to entry is an part of your business that shuts out competitors. Barriers to entry are things like proprietary technology, private information that other businesses do not have and an executive team that has experience that other companies do not have. The barrier to entry part of your business plan puts you ahead of the competition. You show that your company is the only business that can supply this need.
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Show Case Study Examples
A proven technique of operating is one good way to build up confidence in your business plan. If something has been done effectively before by another company like yours, then let this be seen in your business plan. The key is to show that your company can get a larger and different market and have better barriers to entry.