When compiling a business plan take a breather now and then to review your progress. When you finish a draft ask yourself the following questions:
- Is your Executive Summary a winner?
- Does your company fit the management team to a tee?
- Does your business plan satisfy the requirements of an investor?
- Get them from the word go
When you present your business plan you essentially only have a minute to grab the attention of the investor. You either hook them with the first page or they are likely to discard it.
The first page of your Executive Summary makes up that minute even though this is the final thing that you will write in your plan. This is the one opportunity you have of hooking the investors into reading and believing the rest of your plan. It needs to have the most fascinating and compelling aspects of the whole business plan you present to them.
Any decent Executive Summary must cover the product or service of your business, identify the market, and divulge the track record of your management team.
For your Executive Summary to be a winner you have to simplify the points you make throughout the remainder of the plan but this is fine. If it hooks the investor it qualifies as a good Executive Summary and they can find the remaining details elsewhere in the plan.
2. Clearly indicate that your management team is ideal for the job at hand.
While years of experience matter it doesn’t matter as much as relevant experience does. Your team needs to be uniquely qualified to be able to carry out the day to day operations of the business as well as the long-term operations. This is shown in the Company Analysis, Operations Plan, and the sections of the plan that pertain to the Management Team.
If your team has experience and skill insofar as starting and successfully running young companies they will be deemed more qualified. Each individual member has to have relevant experience in the job that they fulfill in the business. If your team has a track record working with recognizable brands this will count in your favor. If you don’t have such a management team you need to indicate both when and how you will hire the most suitable people.
3. Consider it from the viewpoint of the investor.
Investors can evaluate a venture using a mental checklist that is really second nature to them. They need to be able to:
- Understand the product or service without delay;
- See that a significant and fast growing need for the product/service your business is offering exists;
- How your business builds barriers to entry that makes it unique;
- Be sure that your team is suitably qualified;
- Determine that you are realistic in your financial projections;
- See that your exit strategy or multiple exit strategies are beneficial to them.