Your business modelA business model is a fancy word for “How are you going to make money?” Do not ignore the money part. Raising capital has a lot to do with the money part.
- An exit strategy
When can the investor expect to get his money back. Is the management going to buy back its shares (ownership in the company) or is there going to be an IPO or are you going to sell the business and cash out.
Liquidity is an important word you need to keep in mind.
Are your numbers realistic? I have seen some business plans and I have prepared some in my early days where I knew in my heart that there was no chance of achieving those numbers. So, justify how you got the numbers.
- Your management team and skill set
Do not undersell yourself on this one. It’s well and good to be modest but if you need to convince your potential investors then you’ve got to tout your horn a little bit. Don’t go overboard though.
- Your investment offering
This is another fancy word for “what’s in it for the investors?” One investor said he has seen several business plans that were good for the entrepreneur but not for the investor. So, make sure the investor get’s a decent return and the terms are fair.
- Be professional
Make sure your business plan is well-formatted and there are no typo errors. It has to look like a professional document. Nowadays, with so much of free software available, it is easy to create a professional document.
- Be honest
Do not fabricate numbers or make dishonest statements. If there is a weakness in your plan, accept it.
For example, if you do not have the experience, don’t fabricate that aspect, if the investor brings up that question, accept the inexperience and tell him you will make it up with your passion.
Let me tell you no amount of experience will make up for the heart.
Vinil Ramdev is an entrepreneur, business coach and author of the ebook “How to write a business plan for astonishing results. In just 3 days!” He is also editor of startupgrowthexpert.com (www.startupgrowthexpert.com)
Learn about How to Make Business Plan ( With Sample Business Plans) (Strategy - Solutions)Content of the Ebook:1) Concepts related to Business Plan
2) Template of Business Plan
3) Sample Business Plan-1
Read More >
Business Plans Explained: The Things You Need to Know About Business Plans--that most people don't!Here is something that is very important to understand about business plans that entrepreneurs and business owners often never think to ask and rarely... Read More >
It's Not a Plan Until the Numbers Add Up: StartupModels.com - A Guide to Building Financial Models For Business Using finmodel4.xlsIt's not a plan until the numbers add up. More than the title of this book, it is a truth of business creation. This book along with the free companio... Read More >
Related posts:
