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"What
is an Investor Ready Business Plan"
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by:
Howard Schwartz
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A Business Plan, as all good entrepreneurs
starting out in life should know is the foundation, or rather a
springboard, towards the establishment and growth of a new business. A
business plan is an essential tool for companies raising capital – and
your business plan needs to be Investor Ready.
What is an Investor Ready business plan?
An investor ready business plan is a document that has been
professionally prepared to meet the needs of both Venture Capitalists
and Angel investors. In your Business Plan, you should be able to see
your own project through the investor's eye. Your plan must be able to
answer the concerns of an investor.
The investors, both VCs and angels, are risking their hard earned
capital by investing in your venture in the hope of long term returns
that are worth many times their original investment. An Investor Ready
Business Plan demonstrates to investors that you are an expert in your
industry and that you have a clear mission. An entrepreneur addresses
these needs by prepareing a comprehensive and detailed view of their
business objectives and goals. Some important sections that address
different concerns of the investors are below:
Management
Investors invest in management - not just ideas. It is very important
that you express your knowledge, passion and dedication to your
business as best as you can. The competence of your team along with
their experience levels and their commitment levels are also factors
that investors look into before making their investment decisions.
Customers
It is important to communicate to the investors that you understand the
needs and requirements of your customers and to articulate your
marketing strategy within your business plan.
Product/Service Description
A complete description of the product or the services offered by you
should be outlined in detail. A description of the overall market for
your product or service, along with the details of your customer base
is essential. The investors need to know the reach and the kind of
customers your product / service is catering to.
Marketing Plan
One of the most important sections of your business plan is your
marketing plan. This section will outline your sustainable competitive
advantage to your investors. In a way assure them why you will succeed
where others have failed. This section is where you include a
definitive description of your customers, market size, demographics,
characteristics, growth prospects, trends and sales potential per
product / service category.
Here is where the pricing strategies are outlined and how they can
directly influence the growth potential of each product /service. It is
also important to include the future growth, market share and trend
influences.
Barriers to Entry
Along with giving the details of what your product / service is and who
your customers are, you also have to inform your investors how you will
you prevent your competitors from taking away your customers. The
barriers to entry section outlines your business strategy to keep your
competitors at bay and grow in the market. Investors need to feel
comfortable about the soundness of your strategy before they invest in
your venture.
Click here to contact us to learn more about writing an investor ready
business plan:
http://www.investorbusinessplan.com/writing-business-plan.html
For more in-depth information on Business Plans, you can visit our site
at:
http://www.investorbusinessplan.com
About the author:
Howard Schwartz is a Business Plan Consultant and a partner in
investorbusinessplan.com He is based at Stamford, Connecticut, and has
helped many young entrepreneurs start out on their business careers by
preparing a comprehensive business plan for them. He can be contacted
on info@investorbusinessplan.com and at 203-494-3344.
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