How to Write a Business Plan for Investors

It is said that business starts with a great idea. It is true but no one can talk down the importance of capital as you won’t be able to make your dream a reality without proper investment. No matter you are thinking to expand your business or starting a new business, you may find yourself in a situation when shortage of funds is jeopardising your stakes.

In such situations, you will have to seek help from investors. The proper way to convince the potential investors is to write a business plan. Though, it is difficult to summarise your plan in few words but you can do it by employing some simple techniques.

Instructions

  • 1

    Be focused and clear from all doubts. You should ask yourself whether you are good to go or not. Evaluate your plan and identify the weak links. Stand in front of the mirror and give yourself a demo of presentation.

  • 2

    Use inspirational, passionate and positive words while drafting your business plan. Remember, you are not providing them facts and figures rather you are trying to get them as excited as you are about this project. A well drafted note makes it possible for you to control their actions through your words.

  • 3

    Your investors want to be sure before approving funds for your venture so explain to them how you are different from your competitors. Tell them the Unique Selling Point (USP) which can be anything like your team, your product or competitive prices of your product.

  • 4

    No one wants to waste his money by investing it in an ordinary business so your business plan should tell them the potential for growth. Give them a road map describing your company’s status in the next five years. A detailed research of the market is needed to prepare a five-year plan. Tell your investors how much market share your venture will be able to capture.

  • 5

    Include a survey in your business plan and tell your investors how badly customers are waiting for the product. If you have supplied any samples in the market then do present a report on its response. Make your case strong with sale, balance sheets, videos etc.

  • 6

    Now, when you have covered all the aspects, it is time to tell them how much you need to start this venture. Do tell them the expected profit in the first couple of years. You should also draw their attentions towards risks and potential losses.

  • 7

    Summarise your presentation in one or two paragraphs to go through all the main points.

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