If Your Small Business Plan Investor Ready?
A Home Business Article Contributed by Elizabeth Fox-Wise
Your Small Business Plan Should Always be Written for Your Targeted Market
If you are seeking investors for your small business, you may need to fine tune your business plan. A business plan should always be written for your target market. If you are seeing investors, you small business plan should be prepared to meet the needs of both Venture Capitalists and Angel Investors. You business plan must answer questions than any investor will have.
Investors want to be fairly confident, before investing their money, that they have the potential to turn a good profit in a reasonably short amount of time. Your small business plan should convince potential investors that you are an expert in your small business industry and that you have a clear mission for your small business and plans to achieve it.
Some Things Investors Want to See in Your Small Business Plan
Management expertise is crucial to investors. They are not investing in an idea, they are investing in your ability to implement that idea and make money with it. It is important that you convey to them your knowledge, passion and dedication for your small business in your plan.
They also want to see that you understand your customers and market. It is important that your business plan communicate who your customers will be and what need of theirs your small business will meet. Your plan should also address the potential market for your small business, and how you will reach that market. You should also outline market growth and future trend predictions.
Related to marketing, your business plan should address any barriers you are expecting to find to enter the market. How much competition already exists in the market? Are their customers satisfied? What will be your edge to gaining a piece of the market? Are you going to target a niche market? What will your small business do to keep the competition from taking your customers?
Your Business Plan Should Assume the Reader Has no Knowledge of Your Small Business
The people you are approaching to invest in your business, may have no knowledge of the product or service that your small business is selling. You should always assume that the reader does not and be sure to explain your business completely.
The product or service that your small business will sell should be explained in detail. Your product or service description should allow the reader, who has no prior knowledge or it, to not only visualize the product, but to be able to clearly see the market and why there is a need.
You are asking an investor to give you money with no guarantee that he will ever see any of it back again. He is willing to take this chance because he is hoping that your small business will succeed and he will make a nice profit on his investment. You small business plan needs to convince a potential investor that your small business is a wise investment for his money.
