Are you looking to raise venture capital? You need a good idea — and an excellent business plan. Business planning and raising venture capital go hand-in-hand. A business plan is required for attracting venture capital.
Use figures where necessary Simplicity and clarity. It is usual for the person who has the authority to approve your business plan for funding assistance to have a very busy schedule; also it is equally possible that business plans from other entrepreneurs are competing with your plan for funding.
As such, your business plan needs to be simple and clear. This can be done by: Where the business plan is bulky, the person reading it may get tired even before forming opinion about the business proposal. This might rub a business plan the due consideration it deserves. To avoid this, all unnecessary details are removed from the business plan.
In fact, only essential information necessary for the reader to form opinion and take decisions should be left. This makes it easier for people to read and understand the plan. Efforts should be made to ensure that what is written in one section of the plan fits together with what is written in other sections.
In fact, all the sections should add up to make up the whole businesss plan. For a business plan to be a valid document it ought to be as real as possible. That is to say that it should be as close business plan for a bankers reality as possible.
Operations, market analysis, estimates of sales and expenses should reflect what is happening in real life. Where a business plan models what obtains in real world situation, it becomes an instrument on which decisions could be based. Use figures where necessary. Most bankers or investors that would read the plan are highly numerate, mainly thinking in terms of numbers.
Experience has shown that most banker and investors are impressed when ideas are backed with figures. In order words, it is advantageous to quantify wherever it is possible. The Business Plan and Intellectual Property Protection Developing a business from the scratch requires a lot of intellectual capital that ought to be protected.
During the process of documenting a business plan, some of the intellectual capital that form the basis of a good business might need to be disclosed especially where the plan is used to attract investors and lenders.
In this instance, wide circulation becomes potentially dangerous. Where the business plan is discussing a business idea that have not been patented or copyrighted, it becomes very wise to include a strong non-disclosure statement on the cover page that states that information in the plan is not to be disclosed.
In some instances, the cover page of the plan, in addition to signing the non-disclosure documents, may carry the ISBN number showing that it is copyrighted. To have an integrated view of your business — it discusses all aspects of the business.
To keep you focused on your goals and strategies — the plan serves to remind you of the goals and objectives of the business. It guides the opinion of a business — the plan gives highly valuable information on all aspects of the business and as such helps to guide opinion of the business.
It also helps to guide the managing of a business — the plan creates performance benchmark against which the running of the business can be compared. It helps to evaluate before hand it there are chances of success for the business — the business plan projects into the future and shows with facts what is likely to happen in the future.
It helps to convince other parties that you can manage the business. As already stated, the business plan is a document that marshals out the what, when, how, why and where of a business. As such, it is required by all businesses not minding the mode of business operation. Note that there are two modes of business operation namely: What information is contained in a business plan?
Information in a business plan must necessarily be about: What do they want? What are their other attributes? What is their market share?
Are located far or near? Are there many sources of supplies and do the supplies configure an advantage or disadvantage to the business? What is the financial structure? How does the equity compare with the borrowed funds? Who are the lenders?How to Write a Business Plan for a Small Business.
In this Article: Article Summary Preparing To Write Your Business Plan Writing Your Business Plan Finalizing Your Business Plan Community Q&A A business plan refers to a written document that comprehensively outlines what your business is, where it is going, and how it will get there.
The resulting document can serve as the blueprint for your business and be supplied to financial institutions or investors if debt or equity financing is needed to get your business off the ground.. Pros of using a business plan template.
The business plan should describe the management team with short biographies of main managers. Your financial projections. Bankers expect to see the three main statements -- income, balance, and cash flow -- projected monthly for the first year, and annually for a couple of years after that.
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Use sample business plan examples and business start-up resources, too. Endorsed by the VBA for over 30 years, the ABA Insurance Services' unique program insures financial institutions countrywide with D&O, Bond, Cyber and related insurance, with a sustained market share of nearly 30%.
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