The business plan, the key to business creation, if successful. This document presents your project and should make future investors, customers, partners, etc. feel like engaging in line with their goals. To present a very promising business plan, here are the essential elements that must not be overlooked.
What is the business plan?
Here you, you and your project are ready to engage in the entrepreneurial adventure. A new mission is ahead of you: to convince people to invest in your project. To achieve this, you need a business plan, a document that answers many questions about your business, your services, your future customers, your strategies, etc. A set of elements must be included in your business plan so that the latter is most compelling. It remains a confidential document, specific to the company and containing valuable information, be careful not to make it available to everyone.
You must write an operating summary
This is placed at the beginning of your business plan and should not exceed three pages. Above all, this part is to save time for your conversation partner by summarizing the strengths of your project and making you want to read more. It must therefore provide an overview of your project / company, so that the reader can get a first idea. Start by presenting your business and briefly its history. Highlight the points that set you apart from the competition and showcase your business model, strategy, and forecasts. Do not forget to mention the amount of funds needed for the success of your project. These points will be elaborated in the next sections, but should be included in the first presentation.
Present your product or service well
From the start, be sure to present your products or services, their features and their performance. What specific market needs do they meet? At what stage of development are they (model, already patented, ready to sell)? What technologies or materials does it make up? What need does it meet? A set of elements that must be presented in a clear and concise manner. Tell yourself that the investor knows nothing about your product and your sector. Get them to discover him in a simple way so they keep all the data. To this simplicity of explanation, add a touch of originality: do not forget that your primary mission is to seduce your potential investor, make him want to try the experience with you and not your competitors.
Perform rigorous and relevant market research
It is still important to present the market where you want to position yourself. What better way to do this than to offer a market research? If it’s sometimes expensive, it’s above all an excellent way to analyze the strengths and weaknesses of your business to impose on the market. Do not neglect this element, which gives you credibility with investors from the moment it is performed objectively. The latter must be carried out in a strict and reliable manner. Also, remember not to omit the presentation of the competition that already exists in the sector to later describe how your offer differs from the existing one.
Target your future customers
Your product meets a real market need, that’s a fact! But who are the consumers who feel the need to buy it? Once again, do not aim too wide, segment your potential goal to refine. Details about your customers’ characteristics to prove the interest in your offer in relation to their needs and describe your core goal.
Present the key figures
Show your investor that you have a long-term overview by predicting your company’s future key figures: estimated expenses and income, income statement and forecast balance as well as break-even points, the threshold at which your profitability is reached. These estimates must be made over several years (5 in general). All of these financial forecasts go hand in hand with your financing plan. To put it this way, simply answer the following questions: What is the desired sum? How much of the capital will be offered in return? What type of shares will be offered to investors? What funding will be allocated to the various positions (technology, advertising, marketing). Do not hesitate to mention the elements that promote the profitability of the project and that show that you know where you are going. A calendar can complete your data. Specify the different dates and goals to be achieved. In this way, the investor perceives the pace at which the project must progress rather than succeed.
Highlight your team and your ability to manage
First and foremost, present your business (company name, creation dates, location, legal form, history), but not only. Your team should also be included in your business plan. Highlight the positions and skills that each of your employees has and emphasize their strengths by summarizing their resume (education, experience, network) that you add as attachments. The success of a project basically depends on those who lead it. Working with a reliable and experienced team remains a great asset for your future investors, who will trust you more. Also show that all the necessary skills are met: commercial, technical, financial….
Define your strategy
Make your action plan! What marketing strategy do you want to use? What are your production methods? How do you organize your research and development? What is your business action plan? A set of answers to include in your business plan that describes your path to success, make sure they are relevant.
A business plan represents the reflection of your business to your future investors. Fine tune it as best you can to conquer them.