How to Write a Realistic Business Plan That Will Attract Investors
Sell your business in the executive summary., Make realistic statements about the timing of your profits., Research your industry thoroughly to ensure your business compares realistically., Address how you will handle the response from competitors...
Step-by-Step Guide
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Step 1: Sell your business in the executive summary.
Busy investors may have dozens of plans coming across their desks every day, so you have to capture their interest quickly.
The executive summary is a snapshot of the whole plan.
It should be written last and use facts rather than emotional language to show why your business is a good investment. -
Step 2: Make realistic statements about the timing of your profits.
Investors like to see steady growth, but not an unrealistic and sudden jump into high profits.
Focus your efforts on showing a profit and return on investment by the end of the second year, with steadily rising profits through the fifth year. , This includes aspects like how long it will take to get the product on the market, realistic costs of materials, and labor expenses.
Investors will be able to research the industry if they haven't already and will sniff out any information that doesn't mesh. ,, Plan to add complimentary products for existing customers to buy.
Make a plan to introduce new products in the future. , This is especially crucial in an industry where products are regulated by the government. , Highlight patents, copyright protection or a unique process or feature that only your company can provide. , Don't assume that your company is the only one with the vision or process to create the products you have in mind. , You should have a realistic view of the demographics and purchasing habits of your target market. , You should be able to show that you and your coworkers have the real life experience to be able to manage and grow your business. , If you need the funds to get your business going, spending money on learning how to write a realistic business plan that will attract investors is crucial.
Hire an accountant or financial expert to work on the figures if necessary, or a market research firm to get accurate descriptions of your customers. -
Step 3: Research your industry thoroughly to ensure your business compares realistically.
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Step 4: Address how you will handle the response from competitors once they know of your plans.
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Step 5: Display a plan for growth and expansion of your product line.
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Step 6: Show how your business will overcome regulations and barriers to the market.
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Step 7: Explain what makes your product or service different from the competition.
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Step 8: Focus on the competition and be aware of what they are working on.
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Step 9: Conduct legitimate market research
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Step 10: and show the results in the plan.
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Step 11: Stress the special competencies and expertise of your staff and principle management.
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Step 12: Seek professional help when necessary.
Detailed Guide
Busy investors may have dozens of plans coming across their desks every day, so you have to capture their interest quickly.
The executive summary is a snapshot of the whole plan.
It should be written last and use facts rather than emotional language to show why your business is a good investment.
Investors like to see steady growth, but not an unrealistic and sudden jump into high profits.
Focus your efforts on showing a profit and return on investment by the end of the second year, with steadily rising profits through the fifth year. , This includes aspects like how long it will take to get the product on the market, realistic costs of materials, and labor expenses.
Investors will be able to research the industry if they haven't already and will sniff out any information that doesn't mesh. ,, Plan to add complimentary products for existing customers to buy.
Make a plan to introduce new products in the future. , This is especially crucial in an industry where products are regulated by the government. , Highlight patents, copyright protection or a unique process or feature that only your company can provide. , Don't assume that your company is the only one with the vision or process to create the products you have in mind. , You should have a realistic view of the demographics and purchasing habits of your target market. , You should be able to show that you and your coworkers have the real life experience to be able to manage and grow your business. , If you need the funds to get your business going, spending money on learning how to write a realistic business plan that will attract investors is crucial.
Hire an accountant or financial expert to work on the figures if necessary, or a market research firm to get accurate descriptions of your customers.
About the Author
Paul Adams
Writer and educator with a focus on practical creative arts knowledge.
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