Send a business plan to the right person
One of the reasons business plans or project presentations are not read is because the business plan is sent to someone who would never invest in your project. A bad practice actually consists in applying the following principle: the more I send my business plan to as many investors as possible, the better chance I have of getting funded “. However, it is a loss and a waste of time. You have to choose the investors you want to send it to. Some actually invest only in a certain sector of activity, others have already invested in your competitors, for some your project is too big or too small. In short, depending on your project and your request, send the presentation only to the funds for which you meet the investment criteria and which have the best chance of financing you. In one sentence: select investors before they are selected by them .
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Take care of your “summary”
In principle, not all business plans can be read by an investor. A day lasts 24 hours and a working day a maximum of 18 hours. Reading a business plan takes time. The investor must therefore choose among the files received those that he can devote time to. You must therefore save him time by writing a quality summary. The latter must be sales-oriented, professional, short (max. 2 pages).
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Business plan key points
Compliance with the fund’s investment criteria
A clearly identified major need
A suitable solution
A large, attractive market
A clearly defined positioning
A complementary team that executes quickly
The first successes
The customer returns
The financial outlook and investment demand
Keep it short: 20 pages max
Just as a 5-hour movie (as extraordinary as it is) has little chance of becoming a blockbuster (we’d prefer a trilogy in this case), a 100-page business plan is the best way to end up… in the trash. Make it easy for the reader, keep it short, 20 pages max. Moreover, it is better to forget the business plan during the first meetings. A summary and a presentation of 10 slides to start and get you excited is enough. Only then does the business plan allow the investor to dissect your project and ask you more detailed questions.
Be introduced to your interlocutor
Do you want to be read? In this case, being introduced by an experienced or trusted person increases the chances of being read. Therefore, it can be effective to go through a fundraiser, especially if the latter is recognized in the market. The fundraiser, who is largely remunerated by commission (% of funds raised), must select the projects they wish to work on. Therefore, the funds look with a more attentive eye at the files that a fundraiser has brought, because they know that the latter has already made a selection. Similarly, being introduced by someone you trust (like being recommended for a job) increases the chances of success. It can be of the brand of a competition, a mentor who accompanies you, a person on your board or the board of directors.
The form of the business plan must be neat, because it gives the first impression. Your business plan should make you want to be read. Do not hesitate to illustrate it with diagrams, photos (of your product, of the team, etc.). The document must be as impersonal as possible. Work on your layout so it makes you want to read, add some color and air it out! A neat business plan shows that you are rigorous and have an interest in communicating (an essential quality in an entrepreneur), which gives a very good impression for the future. By following these tips, you will significantly increase your chances of being read.
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