Business Plans for Funding or Investment

1. Identify a real market need Investors especially want to know that a real market need exists What does your customer look like? What are their needs? Why do they have those needs? Do they know they have a need? What pain are you easing? Pleasure giving? What are you going to do to meet those needs?

2. Know your business How does the market work? How big is the overall market? How much of that is “addressable”? What is the competition? If the reader does a Google search, what will they find out? You need to establish your credibility as an expert in your field

3. Understand Your Audience Who is the audience for your business plan? What are they looking for? Does the plan deliver it? Does it tell them all that they need to know? Is the plan understandable given their level of background knowledge?

4. Research Research is critical! You will appear more professional Your target reader will be doing their own research...don’t be caught out! BUT ..only include content that the reader can believe Verifiable statements of fact Official statistics, audited accounts, market analysis, etc. Learned opinion from third parties Articles, news, reports, etc. The views of the authors Need to establish credibility Must be seen as an expert

5. Know it’s purpose What is your business plan for? What is the next step? Will it get you to that next step? For example, if you are looking for an investor:- The first step is to send them your business plan But investments never occur on the strength of the business plan The people behind the plan are equally important. A good business plan gets them interested in meeting the people behind it A good business plan delivers the next step – a meeting

6. The executive summary is key It’s the first thing that gets read It may be the only thing that is read It sells the rest of the plan Grab attention quickly Concise and compelling Straight to the point Headlines 2 pages maximum

7. Be positive It’s a selling document…..so be positive Does it do a good job of selling? Does it highlight strengths? If weaknesses are mentioned are they mitigated? (Should they be mentioned?) Is the tone positive? Have achievements to date been highlighted? Has the future potential been made apparent?

8. Be special You need to have something special Something that lifts you above the competition Are you bigger, better, faster, stronger, cheaper? Don’t expect people to get the magic…… …..make sure they get it!

9. Evidence of competency Your business plan should describe your business strategy…. Where you are now The vision for where you wish to be And the action plan to get you there They will be looking for evidence that you are competent enough to do it. Focus on the following areas Business Model & Pricing Sales and Marketing Business Delivery Financial forecasts and control

10. Structure your narrative Check its easy to read A flowing story-telling style is good Include headings to organise the content Put all technical & in-depth detail in the appendices Balance the Business/product content Talk product benefits not features A Financial summary table must be in the plan Use picture to make the main body as short as possible - 15 to 20 pages Formatting and style are important

10 The 10 Business Plan Principles Identify a real market need Know your business Understand your target audience Research Know it’s purpose The executive summary is key Be positive Be special Evidence of Competency Structure your narrative

Final thoughts Identifying the type of finance and/or expertise you need is first step It is always easier to raise money when you don’t need it Raising money generally takes longer than you anticipate Planning & understanding the mind-set of finance providers is key