The reading level for this article is Novice
A Business Plan, as all good entrepreneurs starting out in life should know is the foundation, or rather a springboard, towards the establishment and growth of ones business. A business plan is an essential component towards the realization of your goals. A vital aspect of a business plan is that it should be Investor Ready.
What is an Investor Ready business plan?
An investor ready business plan is a document that has been prepared by going into all the concerns of the investors. In your Business Plan, you should be able to see your own project with the investor’s eye. Your plan must be able to answer the concerns of an investor.
The investors, both venture capitalists and angels, are risking their hard earned cash by investing in your venture in the hope of long term returns that are worth many times their original investment. An investor ready business plan, in a way addresses all the concerns of the investors. One addresses these needs by giving a comprehensive and detailed view of what ones business aims and objectives are. Some important sections that address different concerns of the investors are given below:
Investors invest in management – not just ideas. It is very important that you express your knowledge, passion and dedication to your business as best as you can. The competence of your team along with their experience levels, their passion and dedication to the set business goals, and their commitment levels are also factors that investors look into before making their investment decisions.
It is important to communicate to the investors that you understand the needs and requirements of your customers and to articulate your market strategy within your business plan.
A complete description of the product or the services offered by you should be outlined in detail. A short description of the overall industry of your product/service, along with the details of your customer base is essential. The investors need to know the reach and the kind of customers your product / service is catering to.
Marketing Strategy Plan
One of the most important sections of business plan is your marketing strategy plan. This section will outline your sustainable competitive advantage to your investors. In a way assure them why you will succeed where others have failed. This section is where you include a definitive description of your customers, market size, demographics, characteristics, growth prospects, trends and sales potential per product/service category.
Here is where the pricing strategies are outlined and how they can directly influence the growth potential of each product /service. It is also important to include the future growth, market share and trend influences.
Barriers to Entry
Along with giving the details of what your product / service is and who your customers are, you also have to inform your investors how you will you prevent your competitors from taking away your customers. The barriers to entry section essentially outline your business strategy to keep your competitors at bay and grow in the market. Investors need to be insured about the soundness of your strategy before they invest in your venture.
Click here to contact us to learn more about writing an investor ready business plan, http://www.investorbusinessplan.com/writing-business- plan.html.
For more in-depth information on Business Plans, you can visit our site on www.investorbusinessplan.com.