Which are the sections a Business Plan for Independent Investors should entail?

If you are an independent investor who is not looking to raise money from venture capitalists or angel investors, you may think that you donΓÇÖt need a business plan for your company. But this is false as a business plan is not just a tool entrepreneurs use in order to raise funds, but it is also a tool which can help you establish goals for your company, monitor the progress your company has made, monitor the fields in which there is still a lot of work to be done, see which of your management qualities still need improvement and discover the ways in which to improve the relationship you have with your clients.

Click here to download your business plan template <==== All these elements are important factors that stand as key elements when it comes to the growth of a business. If you want your company to become successful, than you should focus on writing a professional business plan even if you do not intend to use it in order to raise funds from venture capitalists or angel investors. The thing you should know is that you will find yourself in the privileged position of writing a simpler plan than the ones used in order to raise funds. The business plan for independent investors should focus upon these essential sections: the description of the business, the marketing plan, the financial management plan and the management plan. The information provided in these sections should also reflect in the executive summary and they should also include relevant documents and financial projections. Your business plan should focus on the following pages:

  • the cover sheet
  • the statement of your goal
  • the table of contents
  • a short description of your company
  • the operating procedures
  • the employees
  • the insurance you will use for your company
  • the relevant financial data

The most important information for an independent investor is provided by the financial data. This can give you a real sense of the way in which your company is evolving and on the progress it still has to make. Here you should insert data about the loan applications, the capital equipment and supply list, the break even analysis, the income projections (this accounts for the statements of profit or loss and they include a three-year summary providing details by month for the first year, by quarter for the second an third year. They also include a short description of the assumptions on which your projections have been based), the current cash flow (here you can also include details which are similar to your income projections), the balance sheet.

Click here to download your business plan template <==== Your independent investor business plan should also provide supporting documents such as copies of the letters of intent you have sent to suppliers, copy of your employeeΓÇÖs resumes, copies of the licenses, patents and other legal documents you needed in order to start-up your business, copies of the legal documents that gave you the right of using a particular working space, a personal financial statement which you can fill in after asking for the appropriate form from your bank, and, most importantly, tax returns of all principles referring to the last three years.

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