A business plan describes an organization, the services or products it is to offer, the goals attached with its functioning and the ways and means of achieving these goals. Business plans are generally written from the perspective of potential investor or stakeholders as investing startups with little or no operating history is a riskier proposition. In the absence of any past data regarding their performance, which can be a pointer to their present health and future profit making ability, banks or other lenders are rather reluctant to lend them money. Wealthy investors or venture capitalists usually come to the rescue of such budding entrepreneurs whose lack of experience hampers their ability to raise capital from the equity market. However, it is imperative to note beforehand, that investments in such businesses carry a lot of risk and an investor will only decide to invest if your business plan is realistic, openly addressees the challenges that your business is most likely to face and is able to convince him about the demand and need for your product or service in the market place.
Business plans generally seeks to satisfy queries regarding the company's product or service, the unmet needs and wants of its target market that the business offering will satisfy, the business model, its competitors and both its present and projected capital and resource requirement. The brilliance of your idea will count for little if it fails to find an investor who believes in the viability of your business model and its profit making capabilities. A proposal should have the ability to grab and hold a financier's attention within a very short time span. You need to consider certain crucial aspects while preparing a document to greatly increase the likelihood of receiving capital for your business.
Executive Summary
This is usually a one-to two-page summary of your business and the most important part of your business document. This section decides the fate of your plan to a great extent as potential investors’ decision to continue reading the entire document more often than not, depends upon the credibility and simplicity of this part. The demand for your business, the industry it will belong to, its strength and weakness, major competitors, target market, growth potential, current and projected financing and factors that are expected to provide it with a competitive advantage in the market place, should be explained in a clear and lucid language.
Marketing Plans
Proper marketing analysis and strategy is essential for any organization as no business can survive without the active patronage of customers. Extensive research needs to be carried out to properly identify your target
market and their problems which your business intends to solve. The method and medium employed to most effectively and efficiently convey the benefits of your offerings to your target audience should be prominently mentioned in your business plan. Investors will be interested to know what sales promotion techniques you will be employing to entice customers and generate repeat business and referrals.Business plans should be detailed, pleasingly formatted, as well as compelling and attractive to a person unfamiliar with your business. A document, that openly talks about the risk associated with the business and assures financiers that they will recoup their money irrespective of business success or failure, will greatly increase the odds of securing finance.
