Whether you have a new business on the rise or you have an existing business that you would like to expand, you will want to look at investors to help you fund the venture. The only way to get an investor to pour money into your venture is by presenting him a well-prepared business plan and project proposal. You will need to present what your business venture is about, what and how you will stand out from the competition, and the bottom line figures that will project the level of financial success an investor will achieve should he invest in the venture.
- Conduct a thorough market research. Every business plan’s success will depend on the realistic market background and analysis. For example, if you are planning to venture in developing and marketing toothpicks. Since this is a product that has been in the market for decades, you will need to conduct various market researches to help you find out if your idea can compete with the other manufacturers in the market. To conduct an in-depth market research you will need to do price checks on your competitors, gather statistics on your target market, and search for suppliers and manufacturers of the materials you will need to manufacture and sell the product. If your product is a new thing, then you may want to do some market surveys and consumer sampling sessions to find out if people will like and need your product.
- Outline your plan. Once you have the data that you need and have determined that your venture or business idea can succeed in the market, you will want to start organizing it on paper. First off, you will want to create an outline with the typical bullet points needed in a conventional business plan. Any business plan will have sections presenting an executive summary, a thorough market background and analysis, financial projections and needs, company goals and vision, and a timeline should the venture get approved for financing.
- Start writing the business plan. Once you have the outline ready, start writing the business plan. Be as detailed and clear as possible. For the financial segment of the business plan, use a spreadsheet application like Microsoft Excel to plot numbers easier. Make sure to be conservative and accurate with your numbers. It is important that your numbers will stand against scrutiny. It is crucial that you do not have grammatical and spelling errors in the business plan. A minor error can turn off the investors. Proofread your business plan multiple times to check for errors.
- Consult experienced people. As soon as you have finished writing and proofreading your business plan, look for a couple of friends that is well versed in finance and marketing. Let them look over your business plan and ask them for their opinions. If your business plan is rock solid with these people, then this will definitely increase your chances of getting an investor to sign on. Make sure to have them critique the numbers, as this will be one of the critical sections of your plan.
Normally, you will be giving the business plan to the potential investor for them to peruse. However, you will want to prepare an oral presentation complete with a PowerPoint presentation. Some investors do not like reading long business plans. If they invite you to pitch the idea, make sure you are ready.