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Incorporating
Investor Feedback into Your Business
Plan
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by:
Dave Lavinsky
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Investors, like the rest of us, have
different tastes. One investor may love a concept and/or business plan
while the next may hate both. It is important to understand this as
business plans are working documents and are always undergoing
iterations.
Management teams must not rush to incorporate each potential investor’s
comments. Instead, have several investors, partners and other business
colleagues review the plan and provide feedback. Then incorporate
common concerns and probe other comments to determine if they are valid.
Always try to understand the rationale behind an investor’s comments.
For instance, an investor may poke holes in a business plan if it
doesn’t have enough funds to fully fund the opportunity. In this case,
the investor’s criticism is solely for them to save face.
However, if you are hearing the same feedback from multiple investors,
it is probably valid. In such cases, be humble. Tell investors that you
appreciate their feedback and modify your strategy and plan
appropriately. You may then be able to re-approach these investors with
great success.
Many investors have significant operating and investing experience and
can quickly and expertly find potential flaws in a business plan. Seek
out investors who have such experience, and be open to their
suggestions. Just don’t take one point of feedback and blindly follow
their advice. It is also important to note that even the most
successful and largest public companies have Boards that provide
similar feedback and advice, so don’t take criticism and feedback as a
sign that something is wrong with your venture. Rather, use it as a
launching pad for an even stronger business.
About the author:
GT Business
Plans has developed over 200 business plans for clients that
have collectively raised over $750 million in financing, launched
numerous new product and service lines and gained competitive advantage
and market share. GT Business Plans is the sister site of GT Venture Capital
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