Are you in the process of creating your own business or are you trying to attract investors? For both the process, you have to write a business plan that is viable and concrete.
We at Peep The World , will make you specialized in this topic and help you build the reference document to create your business. Through the multiple interviews with entrepreneurs, we have gathered many tips and tricks that we are going to reveal you right here.
How to write an effective business plan
Below are the 6 killer tips to attract Investors that convert.
1) Heed the presentation
The materials that you are going to present or send must be crisp and clear, a well presentable content is very important to attract investors. The business plan gives the first impression of the seriousness of your project and the team. Some investors prefer to receive an executive summary or a little detailed business plan to determine if the project meets their investment criteria and then receive a more in-depth presentation.
The trick: Have your business plan read by several people to collect their criticism. Try to have a color code and a graphic chart consistent with your logo .
2) Emphasize on the effectiveness of your team
Many presentations do not speak enough about the team that supports the project. Show the complementarity of your skills ! Indeed, the motivation and dynamism of the team are among the first criteria for making an investment decision.
You should also incorporate the qualifications of each in your business plan and in some cases the profiles that will be recruiting in the coming years. When the founder is the only person behind the project, it is more important to highlight his background and experiences .
The trick: Integrate one to two slides with the key elements of the CVs of your team, show the complementarity of the skills and the versatility of the profiles.
3) Don’t underestimate competition
Showing the strengths of the project after demonstrating the existence of a market is paramount but insufficient. Care must be taken to analyze direct and indirect competition. First, identify the actors who offer a product or service equivalent to yours and then determine your targets. You will be able to define the strengths and weaknesses of your competitors and highlight your competitive advantages .
The trick: Some business plans tend to show that the exposed project is the best in all aspects. Do not forget to show the strengths of its competitors.
4) Don’t be too optimistic in your financial forecast
The difficulty is that the forecast must be ambitious to attract investors while remaining realistic. Some funds encourage entrepreneurs to be pessimistic about their financial forecasts. In general, a profit and loss statement and cash flow statement are required. It is not necessary to take over the whole Excel table in the presentation, two to three slides are sufficient.
The trick: Do not underestimate your burdens, base yourself on solid and motivational hypotheses and do not hesitate to call on an expert for this technical and delicate part.
5) Select the information best suited to the project
Many presentations contain too much and often rough information. Investment funds criticize the business plan for articulating preconceived notions and not sufficiently base their analyzes on reliable and current studies. Vary the sources and integrate both qualitative and quantitative data into your business plan.
The trick: For each piece of information you put in your business plan, ask yourself if it is clear, essential and perfectly adapted to your demonstration.
6) Be open-minded
The target of the business plan is sometimes not clearly defined and often very broad. “The product is aimed at active women, but it is also likely to be of interest to the elderly and young children,” says some of the presentations. It is important to clearly identify the target audience to be able to study their needs. The target must be compose of two or three different profiles, in which case it will be necessary to analyze them each on their own side.
The trick: Target and do not scatter!