Planning is a vital part of starting any new business. Attracting investors for a business start-up involves a formal written plan called a business plan. There are several key elements that need to be addressed within this plan. This informational packet is an outline that will motivate potential investors to give you the additional resources needed to get your company up and running.
The order of these components isn’t nearly as important as the content. The information covered should be thorough and logical. It may not be necessary to use every suggested topic listed here. If the topic isn’t relevant, consider omitting it or combining complementary information together into one section. Most importantly, the plan needs to convince an investor that your business will offer them a return on their money.
This section outlines the form of company ownership. Is your company a sole proprietorship, partnership, or corporation? Start-up plans as well as company location need to be summarized.
Products and Services
Product and service descriptions, future products and service descriptions, and competitor comparisons should be covered under this topic.
Industry Analysis Summary
The industry market needs, trends, and competitor strengths and weaknesses can be addressed in this section of the plan.
Market Analysis Summary
The target market of your company’s products and services needs to be identified along with market needs, trends, and future growth opportunities. Where and how does your company plan to fit with and exceed what the industry already offers?
This is the area to outline the pricing, promotions, and marketing strategies of your products or services.
Sales forecasts and sales cooperatives can be discussed under this subheading. Sales goals may also be included.
If your company is going to utilize the technology of the Internet for advertising, e-commerce, or customer communication consider covering marketing strategy and development requirements.
Include the organizational structure of your business. Who are the key management personnel? Team members with proven track records of professional accomplishments may bolster investor confidence in your new venture.
This is the area of the plan that will include projections of profits and losses, cash flow, and long-term plans. This is a good section in which to outline any funding that is needed. Include specific dollar amounts and concrete justification for the funds. This is probably the section that investors will pay the most attention to. If crunching numbers isn’t your strongest area, consider enlisting the assistance of a team member with finance savvy or hiring an independent professional.
By the time you have completed all or most of these sections for your own business plan, this one or two page overview will be simple to write. This summary is an overview of highlights such as company objectives, company mission statement, and specific keys for the success of your business.
A final benefit of putting together this comprehensive business outline is that unplanned areas of your business may become noticeable. This tool for attracting investors for your start-up may offer clarification that may have been overlooked. You will be well prepared to find investors for your small business when this plan is completed.A final benefit