Top 5 Business Plan Tips

If you want your potential investors to know that you are a professional and you want a great business plan as well you need to keep the following 5 key points in mind.

1. Demonstrate Your Track Record

All investors are aware that the past is a good indication of how a business will perform in the future. If you received funding in the past make sure that you indicate the ways in which you managed that capital so as to grow your business, how you achieved operational milestones, successfully penetrated your niche market, and rewarded your investors. If your business is a new one make sure that you indicate the ways in which your management team has experience in raising businesses from inception to completion successfully in the past.

2. Know Your Niche or Industry

Nowadays niche is everything within the world of business. Let’s assume your business is part of the $1 trillion healthcare industry. You will need to focus on products and marketing efforts pertaining to a specific area of the industry such as networking appliances for family doctors in a specific area. In keeping with this example your business would also need to compete in the electronics, telecommunications, and business services industries. This is a niche and by focusing on it you are able to maximise ROI on marketing strategies. Most investors appreciate knowledge pertaining to niche markets.

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3. Know Your Customers and What They Want

All investors view companies in terms of customer relationships and therefore your business plan must indicate precisely the reasons it is uniquely qualified to deliver on an as yet unfilled market requirement. The plan also needs to include both an outline and timeline indicating the means by which it will move products into the hands of that market. After all, unless you are able to reach your customers you will not enjoy profits and so your investors won’t either. Let them see the special connection between you and your customers.

4. Lock your Customers In – And Lock Out Competition

A good example of locking in customers is the way in which telecommunications companies offer ΓÇÿbundle’ services. When a customer buys one product they are given the chance to receive a suite of services at discount prices. Also, a customer also is spared the cost of installation fees unless they change companies and this is another lock-in tactic. Other excellent examples of lock-in strategies include great customer service and products. This is how competition is kept down and the practice itself is referred to as building barriers around existing customers. Your potential investors will want to know how you intend keeping your revenue base.

5. Only Provide Realistic Financial Assumptions

Sober, well-reasoned financial assumptions and projections communicate operational maturity and credibility. Remember that many investors choose only to take note of the financial section of the business plan. This is why your assumptions and projected financials need to be totally realistic. If you want to garner credibility with investors, make sure that all of your financials are consistent.

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