What Investors Want to See In Your Business Plan

One of the main goals of the business plan, is to compel investors to invest money into the business. For example, if one were to go to a bank for a loan, they will be questioned as to what the money is needed for, and why the money is needed. In the same way, an investor wants to know why your business entity is a good risk for them to invest in. In order to answer this question, you need a solid business plan that spells out the specifics of your business, and why your business would be worthy of investment.

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The Finances:

You’ll be expected to point out the financial particulars in your business plan. If you are just starting your business, then you will have to tell a bit about yourself, as it pertains to your business. This is especially true if you are applying for a loan. The information that you include will make a difference on whether or not you win the loan approval. Include the facts and be detailed about the facts. You should answer the following questions on your business plan:

  • How much money do you need?
  • How profitable is your business now, or will it be in the next six months?
  • How will you spend the money?
  • How long will it take to pay back the loan?
  • Are is your profit margin affected by other debts, or loans?
  • What are your expenses, and your revenue anticipations in the future years?

Having said all of this, you’ll want to highlight your financials as they stand right now. If you have secured loans, you’ll be seen as less of a risk.
Having said this, the lenders will still want all of your financial details.

Download your business plan template HERE now!

More details:

There are more things for you to present to potential lenders and investors. They include:

  • Who is the operations manager for the business, and what is their expertise?
  • Does the business have a marketing plan?
  • Why would a customer want the products or the services that a business has to offer? What makes this business competitive?
  • What is actually being invested into this business? Is it time, assets, or money?

The business plan hones in on the goals of a business, in order to make the business attractive to investors. You will also need to include market analysis that shows who your customers are, their shopping habits, and why they need what you have to offer. Otherwise, you won’t be able to achieve your long-term goals.

You need to include this information, along with any other information that proofs your claims. In this way, investors will see that you are motivated to succeed, and very serious about making this happen.

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