How To Write A Business Plan To Impress New Investors

Starting a business is a daunting task. Looking for investors for a new business is even more nerve-wracking.

Fortunately, a business plan can give you and your team the comfort and direction they need to succeed. A business plan outlines the business's goals, plans to attain them, and the projected time frame. This professional outline, and the details it contains, will offer everyone involved some clarity on how to lead the business.

If you're looking to gain investors, the amount of polish you put on your business plan is particularly important. You want to make sure to put together the best plan you can to impress them.

What is a Business Plan?

A business plan is your business's roadmap. It outlines goals and how a team hopes to achieve them, marketing strategies, investment opportunities, expected growth, target market, management strategies, and more.

The business plan is essentially what births a business. Without it, a business could have everything and anything and try to cater to everyone. This is a sure path to failure and eventual bankruptcy. ''A jack of all trades is a master of none,'' and a master of none is a joke to all trades.

What is a business plan's purpose?

A business plan has three main purposes:

To identify, describe and analyze a business opportunity and/or a business already running. It examines its financial, economic, technical, and practical feasibility.
It serves as somewhat of a business card for introducing the business to others like banks, investors, NGOs, and more.
To serve as a management tool and a planning tool.

These are the three key reasons why one should prepare a business plan: to describe the business, to present the business, and to plan for and manage the business.

To attract and keep new investors, you must write the business plan for an investor audience.

Write a Business Plan to Impress Investors

Writing to attract new investors is an achievable task with these nine guidelines:

1. Keep it Clear and Concise

The ideas, facts, and figures you present need to remain crystal clear and focused. Explain any technical terms or technology you need in straightforward terms. Avoid wordiness and unnecessary detail to ensure potential investors read through the whole document.

2. Ensure the Plan is Achievable and Practical

The business plan should show investors that your business is not a fantasy but an achievable goal. Investors are not friends who will offer support, however crazy the dream. They will be putting in some serious money, hoping to see large returns in the end. Investors do not build their hope on dreams but clearly outlined, achievable goals supported by facts.

3. Show Your Research

Facts, facts, facts--facts are king. You want to include data that supports the claims you make, the intended market, the dependability of the product or the need for the service, and so on. So show and cite your research! Showing your research tells investors you know what you're getting yourself into.

4. Consistency is Key

Consistency in message, goals, and even formatting is one of those little things that makes a big difference. Get a proofreader to highlight any areas that send a mixed message, relay inconsistent data or strategies that would cancel each other out, and any mixed fonts. Show investors that you pay attention to detail and have a clear vision.

5. Place Emphasis on Potential Growth

Remember that investors invest because they can see their investment tripling, quadrupling, and growing in leaps and bounds. A business plan written to impress new investors must highlight the growth potential of the business in detail. Show them a rapidly expanding market, a niche not yet covered, an unsaturated market, etc.

6. Write in an Engaging and Confident Tone

No one wants to invest in a company whose leader has no confidence. Make sure confidence in your business idea comes through in the business plan. Use enthusiastic and engaging language to keep their attention.

7. Discuss Potential Challenges

Identify business challenges you expect to face and how the team will overcome them. o This adds another level of realness to the plan and shows investors that the business is ready and able to face challenges head-on. It will boost their confidence and trust in their investment and the management team.

8. Demonstrate the Competitive Advantage

Demonstrate how the business intends to outshine the competition and maintain that advantage. A business only remains in business if it holds a strong enough client base. Outline how your product or service will remain superior and more attractive than any other in the same market. Showcasing the staying power of your product to your potential investors will make them more likely to invest.

9. Double-Check

Confirm that the math is accurate. Check that you've cited the right sources. Verify the data is correct. Certify that every "i" is dotted and statement punctuated. Double-check it all again. If potential investors spot any inaccuracies and inconsistencies, they will challenge the entire plan. They will also mistrust the business team.

Wrapping Up

Remember to keep it short, clear, and relevant to the audience: the potential investor. Maintain confidence and charisma throughout and keep the facts straight. Investors will line up at your door in no time. Build on a foolproof business plan by making it perfect for new investors.