What Information Should Your Business Plan for Investors Include?

The first thing to include on a business plan is what your company sells, how long it has been in operation, how many employees and so on. This gives the investors the basic feel for your business.

Next, state why the consumers will buy your products or services. Explain this in depth to the point of even mentioning the latest innovations you have made. Investors need to know your products or services are in demand by the consumers.

Write up a 3 to 5 year plan for your company. Show how it will grow and expand with time. This shows the potential for success. This can make or break your chances of getting your funds.

Prove to the investors through your business plan that you are knowledgeable of the market in which you are competing. Additionally, explain why you think you have a leg up on your competition or how you plant to set yourself apart from the other businesses in your niche.

Investors are interested in seeing the bottom line. How much profit are you showing now and will have in the future? Make sure any financial projections are realistic. You must have information to back up your projections.

Include why you are asking for additional funds. The investors do not want to hear that you are tired of worrying about making ends meet and that is why you want funds. Your plea for funds should be about how the company can further grow with added funds.

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Remember, the climate of investing is constantly changing. One year it can be relatively easy to find funding where the next year it could be tougher. A business plan will help show the investors how serious you are about making your business a success. It also shows them the possibility of return on their investment. This is why a good business plan is needed when approaching investors.

Peter

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