Get A Quote For A Custom Tailored Business Plan Investors Can’t Reject
The Outcome: At the end of this article you will know how to write a business plan Step By step that investors will be impressed about. You will also help you set up your business plan as tool you can use for your overall business success.
Do you know anyone who has written a business plan but rarely opens it to find business strategies? At Tech Investor Network we strongly recommend and encourage our clients to learn about the importance of well-documented business plan which serves as tool for business growth and development.
What is a business plan?
A business plan is a tool that describes your company in detail and how it operates. A business plan can also be considered as the overall blueprint your business structure..
What a business plan is used for?
A business plan is a communication tool used to attract investment funding or capital from angel investors, venture capitalists or financial institutions. A business plan can be used as a strategic tool to create valuable business partnerships and importantly to show the profitability of a startup.
The scope of business plans varies but below is the standard outline for most business plans and as you scroll down, you will see a comprehensive business plan outline we recommend you use as your guide when creating a business plan for investors especially.
- Contact Information (Your company name, phone number, address, email etc)
- About Your Company (Profile) – What does your company do ?
- Market – Who are your customers and where can they be found?
- What is your product or service? Any benefits?
- Financial Analysis – (Future prediction or revenue / profit
- Implementation strategy – (Short term and long term strategies)
- Management team – (Any partners? skills?)
Business plans are like the grand architect blueprint for your business, however most amateur entrepreneurs prepare a business plan with bad or rushed content, present it to investors and expect to be funded. Even worse, some entrepreneurs start a business without a business plan. Can you imagine building a home without having a plan?
The reality check here is, “Would you hand over your money to the architect who designs a beautiful home for you with no solid foundations?” The answer will be an out right NO!, because, for most people (Investors) will not like to run at loss for mistakes which can have avoided.
All hope is not lost, and for this reason we encourage you to learn how to write good business plan in a way investors will be impressed about when they begin to reading it.
Our recommended outline below will quickly help you answer all the question investors will be asking. Now, after going through the business outline below you will read on the 4 main pillars every business plan have and every entrepreneur must know this, They are the: WHAT, WHO, WHY and HOW
The Best Business Plan Outline For Investors
Investment applications require the submission of a business plan. This outline is provided as a guide only, and we understand that some early stage enterprises may not be able to complete all sections until they are operating or in a position to obtain certain kinds of information.
However, the more complete the business plan is, the easier it will be for investors to understand and evaluate your business proposition.
Although the Tech Investor Network does not prescribe a set format for a business plan, this one lists what most investors are looking for.
1. EXECUTIVE SUMMARY
An executive summary is an overview of the entire company
2. SUMMARY OF THE OPPORTUNITY AND COMPANY
What is it? How does it work? What is the business model? How will it grow? Which strategic industry is it in?
How did the opportunity occur to you. How did you get started? Who is on board? What have you done so far
3. OVERVIEW OF PROPOSED PRODUCT, SERVICE OR TECHNOLOGY
Describe the product, service or technology in detail.
What it does. How it works. How it is used. What it looks like.
Describe The Innovation
What is new about your product, service or technology? How is it different from what is available now?
Value proposition and customer needs
Why does your customer need it? What is in it for them?
Is any part of your proposition patented, copyrighted, trademarked, or registered? What is the status?
4. MARKET OPPORTUNITY
Describe the overall market, the primary industries associated with it, and how your opportunity fits in.
Describe the portion of that market you will target. Describe the customers and users.Why they are the ones that represent your value proposition
How is your target market meeting its needs now? Who or what is thecompetition? How is your product, service, technology or business model different from theirs? Do you see opportunities they don’t?
5. COMPANY MANAGEMENT
Description of the key personnel in terms of their talent, skills and experience.
Human Resources Plan
Description of positions that need to be created, how they will be filled, and when.
Resumes of founders and existing or proposed shareholders.
6. DEVELOPMENT PLAN
- Description of product, service or technology development milestones and proposed timeline.
- Description of sales and marketing strategy, including revenue model.
7. FINANCIAL PLAN
Projected cash flow statement
Investment needs, short term and long term financing requirements
8. FOR FUNDING
If your proposition doesn’t clearly fit with one of our strategic industries, or if you have questions regarding information disclosure or omission based on the above outline, please contact us so we can assess it and give you feedback about its eligibility.
The Four Pillars Every Business Plan Must Have To Reach The 85% Potential Of Getting Funded By Angel Investors
For every good business plan there are four categories of questions that must be answered to reach that 85% potential of getting investor funded. To reach there you have to answer the following:
- Who ?
1. What is the problem? or What is the one thing you have a solution for? (Describe your problem statement):
What particular problem does your idea / solution / service or product product solve? This is the most vital part of your business structure because it plays a key role in:
The number of existing cases or number of people with the problem described
The rule of thumb here is that, tech investor are looking for businesses that are scalable to invest in. Technology startup or companies that have less geographical restrictions are 97% more likely to find investors who are looking to invest for huge return on investments (ROI) since they have the idea that they can become a global tech company.
Why does the problem exist?
Understanding why a problem exists can lead you to your greatest competitive advantage. understanding the cause of a problem can help you find better a competitive advantage. For example, If you know a problem exist because your competitors prices are high, by lowering your price a few cents could solve the problem temporarily but knowing how your competitor fully operates can help you understand and master the true art of industry leadership. For instance, by knowing what it cost your competitor to create a particular commodity or product, you make strict decision on pricing structures that can help you lead the market. This is one of the reason we encourage a deep market research.
2. What do you need?
- Financial Plan or Budget Plan
- Human Resource Plan
Financial Plan or Budget Plan
As humans, we have a natural habit of having high value for things we own. determining the financial or budget plan for your company is as a crucial as the main reason why you have decided to start a business in the first place. Even though you may not have all the figures correct, it is recommended you show your burn rate for all the departments for the next 3 years including cash in and out, expected returns / profit.
Here are the 4 points you should cover in your financial plan
- Expenses (Burn)
- Return On Investment (ROI) / Profit
- External Fundraising
Human Resource Plan
The Team You Need For Your Company
For every business your team is your first asset. The unspoken truth is that, a team of highly talented individuals or renowned candidates as startup or company partners can help the right guys help you get funded by venture capitalists.
In this section thoroughly explain the capabilities, strengths and efforts of the team. You can do this by updating your resume and and dedicating a section of the page for each team member.
In describing the the team some of the key points to look out for are:
- Resources required for the project
- Detailed Project Plan
- Financial Requirement
- Effort Estimation
The “WHY ?”
Why Customers Should Use Your Service / Solution Or Product
You need to have a justifiable analysis to of the market to prove your product is or will be needed. You can use the minimum market data analysis such as industry cap, market cap, competition revenue etc. By doing this you should drastically differentiate yourself from your competitor. You can usually do this easily by building a different brand identity and social voice. However you should point out, what your unique selling points? How you can differentiate from competitors and what value you can create for customers.
In this WHY section, you should cover
- How you create value for customers and for your company
- What makes you different form your competitors and
- What is the cost or time advantage of using your product or service. For example by using www.techinvestornetwork.com, you can save yourself tons of time and investor rejections by meeting with investors in our network who are most likely to invest in your tech company.
How To Reach Potential Customers (Marketing Strategy)
Your marketing strategy should be refined and well targeted enough to reach the right customers for your business. It is a known that fact that without marketing the best product will not sell. Marketing is compulsory for every business because it is what generate the sales to keep your business running. To design a marketing strategy that investors want, you must keep updating your marketing research based on the market demand and customer behaviour. Points you should cover in your marketing area includes:
- Digital Marketing
- Traditional Marketing
- Media And Publishing
- How You Will Target Your Ideal Customers
- How Your Sales Team Will Close A Sales
Building A Brand Strategy
Building brands are not expensive. Information you share on the internet and media can quickly help you build a brand. The use of paid advertising is a great way new brands can establish credibility and build a loyal fan base. In marketing area of your business plan, explain how you can leverage public resources and free resources to build a brand
Resource You Can Use To Build A Brand
- Media And Publishing
- Digital Marketing
- Influence Marketing
- Strategic Business Partnerships
The Operation plan for most business carries a big share in some enterprises. Many things go under operations which is not technology and human resource. In this section you should clearly explain the major key operations of your company.
by covering the points below you will make it easier for investors to understand your business and get you funded.
- Infrastructure Plan
- Disaster And Recovery Plan
- Method Of Department Communication
Benefits & Rewards For Stakeholders
The one thing we always encourage at Tech Investor Network is communication. Because you are literally dead without it. Sometimes the right communication with stakeholder management can help your company flourish to where there is no limit. Every individual associated with your company is responsible and directly or indirectly affected by the benefits of the business. Here are a few topics that must be addressed in this area of the business plan
- Mode Of Communication
- Frequency Of Communication
- Roles And Responsibilities
Who Are the Target Customers
Targeting customers are the right place at the right time has been made easier with tools like google ads, LinkedIn ads and Facebook ads. Planning your media targeting and lead generation requires the help of an expert in marketing but the minimum data needed to understand your customer will include
- Customer Demographics
- Target Customer Analysis
- Income Group
- Repetitive Order Plan
The Executive Summary
Your executive summary is all the detail in your business plan summarized for investors and 3rd parties to quickly read and understand what your entire business is about without having to red the business plan itself..
HERE ARE THE 4 THINGS PEOPLE WILL ALWAYS PAY FOR
2. Leading Edge Product or Service
3. Apps or Service That Makes Money; such as: bitcoin mining
4. Passion; Tools that allow individual to express their passion such as creative writing, advanced Virtual Reality Games, Painting, Photography tools and digital editing software etc.
DIFFERENCE BETWEEN ANGEL INVESTORS AND VENTURE CAPITALISTS
As general rule, angel investors are individuals who will put in seed funds in potential startup and usually invest less than $1 million dollars. However, venture capitalist firms are designed to offer you funds when your business is ready to expand.
DO I HAVE TO PAY BACK IF MY STARTUP FAILS?
You don’t have to back the funds investors put in your business if your startup fails. The goal of the investor is usually to sell his/her share 5 – 15 years down the line for a significant profit and this is the main reason investors can be picky on who they invest in. For this reason, we encourage entrepreneurs to present their business plan in custom tailored fashion to portray your business strengths, weaknesses in a strategic way which will quickly communicate and direct the investor to the opportunities your startup has to offer.