If you are not absolutely sure that your business plan is persuasive, stop and watch this free presentation to discover how to make it even more convincing!
The basis of a business plan must be hard data, not a just an idea. Creative entrepreneurs who have many ideas may find this shocking. Even so, smart entrepreneurs adapt to any situation and soon find the facts they need to stand by their ideas and convince investors to finance them.
A perfect business plan is built on three major elements:
1. Market Analysis
An investor will always ask about the potential of growth in a certain market. Hence, the market research must conclude that the market for your product or service is on the rise. There must be proof of the customers needing your product not only wanting it.
Studies made by independent industry research institutions are more powerful. You can also use governmental, organizational or education reports, books, specialized blogs from industry leaders, books, articles and whatever other research you can get your hands on. DonΓÇÖt forget to include interviews and market research.
2. Top Management Team
The funding firms are convinced more by the people leading the venture and less by the venture. If an incredible management team runs the venture, they will notice.
Mention any successes of the management team. Describe in detail the extended experience of the management team to build and grow businesses. Make them look good and use any kind of evidence of their hard work, similar positions they had in the past, their complete education, awards, recognitions or reputation.
3. Realistic Exit Strategy
An IPO, an initial public stock offering or a buyout /merger with another company is the expected outcome by any investor.
This is a risky ground. If you choose to explain an exit strategy, the investors might become suspicious and lose confidence. The secret is not to appear naive by giving as an example similar companies who have done it. Study well the history of such ventures and include them in the business plan.
Make a profile of companies that are prone to buying ventures like yours. You must provide a good reason why these companies will prefer to buy your company or merge with it instead of building one of their own.
Watch this free presentation learn even more about how to write a convincing business plan in less than a day.