Writing a business plan to attract investors is quite different from a business plan that you would want to formulate for getting a bank loan.
Remember the investor does not just put in money in your business but they also become stakeholders in your business’ future prospect. They many times often become growth drivers and are well capable of completely changing the route that your business takes going forward.
How to Write a Business Plan that Attracts a Lot of Investors
Well here is a quick lowdown on some of the key elements that you must include:
Give Additional Attention to the Executive Summary
We all know that the Executive Summary is the window for the entire business plan. But when you are writing a business plan to attract investors you will need to be even careful with it. It must be meticulous, must grab attention and invariably should attract the investor’s requirements.
You must remember that investors generally follow the executive summary to get an overall picture and get an overview of all that the business is about. If you feel that the executive summary that you have formulated is not catchy enough, it is a good idea to re-chart it. You must look to go back to the drawing board to bring up a more definitive picture that is also essentially attention grabbing
Pay Attention to Details
Writing a business plan to attract investors is as much a reflection of your business as it is about you. Therefore, it does not augur well if you submit a plan without key details. If required, you must check your plan multiple times to ensure all relevant data and details have been included. Whatever the need and target objective might be, you should pay attention that the plan reflects it appropriately through facts and figures.
Sometimes you might want to rely on a computer application to formulate the business plan but don’t be 100% sure. Always cross-check every detail to be sure that every section has been included and no key component has been skipped. It is always a good idea to cross check. As you can well understand, a well written business plan with a meticulous line-up of details will always further your chances of getting an investor on board to help you with your plans.
Be Honest In Your Approach
As an astute entrepreneur and genuinely passionate business person, you must have an honest approach to your business mission. So while writing a business plan to attract investors, you must be very careful about the details you add. Always ensure that you add only those details that you can back-up with further data point when referred to by the investor you have approached.
When you are elaborating your business plan, it is extremely important that there is coherence in what you speak and what has been outlined in the written business plan you have presented. Be prepared with any kind of potential question that the investor could throw up. Also, lack of coherence in what you say and what you write can adversely impact the final picture that you present. It could even lead the investor to cancel the proposition that you make. They could be concerned about the possibility of a double-speak or perhaps a dishonest approach if there is lack of cohesive element in the overall business plan.
Ensure That the Business Plan Has Clear Objective
It is common knowledge that randomness only begets random results. So pay attention and avoid putting an idea in your business plan just for the heck of it. It is crucial that while you are putting together the business plan, you put up ideas that bring out the objective very clearly.
Therefore while writing a business plan to attract investors; you must have clear justification for every element that you put in the plan. It is a sure way of winning attention and getting more investors attracted to your business. It is but obvious that when you put through a well thought out idea, it gets considered with the due seriousness that it deserves.
Therefore when you are planning a business idea, it is important to take a few minutes and consider business feasibility before you go ahead and approach investors. In case, the idea that you have zeroed in not worthwhile, it will only be more waste of time to involve investors to go through it. What’s perhaps a better option is to go back to the drawing board and create something that can generate the better response and could mean better business opportunities for you too.
One of the easiest pointers in this regard is creating a business plan that is closest to your heart and fulfils the deepest desires that you have. Try and envisage the objectives you hope to achieve and the overall profitability of the business you are trying to build. This will always ensure that you are able to generate a business plan that will not just attract investors but convince them to believe in your conviction and dreams.
Do It Properly
You must remember that the fact that an investor becomes a stakeholder in your success makes the task even more complicated for you. If you in any way fail to use the money in a way it was envisaged and squander any bit of it, you can rest assured that you will never get a second chance. Moreover, the investor is also capable of pulling the plug if they so desire. Therefore, the business plan that you provide the investor should be tightly composed with every minor detail taken care of. It should in every way bring forth your strong commitment and stoic passion in making the best of the business idea that you put forth.
Writing a business plan to attract investors is no child’s play at all. Apart from being meticulous and carefully constructed, it is absolutely important that the plan highlights your business objective in every possible way, be it through the facts or the projections.