If you’re an entrepreneur who likes to forge ahead without putting too much thought into the future, writing a business plan is crucial to starting your company.

After all, it’s hard to get funding without one, and if you fail to provide investors with all the information they need upfront, they might not want to invest in your company at all.

What is a Business Plan?

A business plan is a written document that lists business goals, stages of business development, and how you tend to achieve these goals and objectives. This document provides a snapshot of your business to potential investors. In modern terms, we can also call it a pitch deck.

Since a business plan is the foundation of your business, it will determine how investors perceive your business and provide you with the necessary funding to kickstart your idea.

If you want your business plan to be compelling that investors can’t say no, check out these seven steps to writing a business plan that investors will love.

Step 1: Research your industry

When it comes to writing a business plan, research is key. You need to have a clear understanding of your industry, your target market, and your competition.

Entrepreneurs tend to focus on the “right format” for writing a business plan. However, there is no such thing as a right or wrong business plan format. What matters is how you cover key aspects of your startup in the plan.

This will not only help you create a more comprehensive business plan but will also give you the opportunity to address any potential concerns that investors may have.

Step 2: Define your goals

When you’re thinking about your business goals, it’s important to be REALISTIC. Write down what you want to achieve in the short-term and long-term, and make sure that your goals are specific, measurable, achievable, relevant, and time-bound (SMART).

Doing this will give you a clear idea of what success looks like for your business, and will make it easier to create actionable steps that will help you get there.

Step 3: List your risks

Every startup has to consider the risks, and it’s important to list these out in your business plan so that investors are aware of them.

By being upfront about the risks, you’ll show that you’re prepared and have thought through the potential challenges your business may face.

Step 4: Create a marketing plan

No matter how great your product or service is, you need to have a plan for getting it in front of your target market.

A good marketing plan will help you define your target market, set budget and marketing goals, and determine the best channels for reaching your customers.

Plus, a well-executed marketing plan can be a great way to get investors interested in your business.

Step 5: Include an operations manual

An operations manual is an important part of your business plan because it shows investors that you have a clear understanding of how your business will run on a day-to-day basis.

Plus, it will help keep your business organized once it’s up and running. Here are two things to include in your operations manual:

1. A description of your company’s structure and hierarchy!

2. A list of your company’s key personnel, their roles, and responsibilities!

Step 6: Include financial statements

Financial statements are important because they show potential investors whether or not your business is viable.

They also help you track your progress and identify any areas where you may need to make changes.

Step 7: Market your plan

Now that you have a killer business plan, it’s time to market it to potential investors. Here are a few tips for getting your plan in front of the right people:

1) If you’re going for a bank loan or venture capital funding, find out who is on their investment committee and address your proposal to them with the rest of the member’s CC’ed on the email.

2) Create an informative video about your company and post it to your company website and social media pages.

3) Reach out to the channels with huge followings in your area(they often post interviews with experts). By having an opportunity to appear on others’ pages, you will have a much bigger exposure than if you were to start out on yourself.

The Main Concerns of Investors

• Cashing Out

Many startup owners show concerns about why investors have such a short attention span. Many people who consider their initiatives as a lifetime commitment assume that anyone else who joins them would feel the same way.

When evaluating a business strategy, investors assess whether or not to invest, but also how and when to exit. The exit plan is super critical as it paves a way for investors to come out of unfavorable circumstances in case the startup fails to make an impact in the market.

• Sound Financial Projections

Profit estimates over the next 5 years might assist investors to negotiate the amount they will receive in exchange for their capital. Investors use financial forecasts as a measure for evaluating future performance.

Entrepreneurs go to extremes with their numbers. They don’t put enough effort into their finances in some situations, relying on figures that are so skewed or optimistic, anyone who has read more than a dozen business plans can see right through them. Some entrepreneurs feel that the financials are the company plan.

They may envelop the project in a mist of numbers. Many investors threw off by “spreadsheet merchants,” who have pages of computer printouts covering every possible company variation and analyzing product sensitivity.

Even when genuine marketing finds data financial projections, investors are apprehensive because emerging companies almost never realize their optimistic profit forecasts.

• The Development Stage

Every investor wants to lower their risks. They analyze the status of the product and the management team while assessing the risk of a new and developing enterprise. The smaller the risk, the higher the chances of funding. 

A solitary entrepreneur with an unproven idea is at one extreme. Such a venture has a limited chance of acquiring investment capital unless the creator has a stellar track record.

At the more desirable extreme, is a venture with an approved product in an established market and a trained and staffed management team. 

If you’ve never launched a business before, you’ll need to show a lot of tangible progress in order to assuage investors’ concerns about your lack of expertise.

• Do a Pilot Test

Unless you are wealthy enough to fund the company and test the pet product or service yourself, the only way to meet your wants is to satisfy those in the market.

Off course, you’ll have to overcome a number of obstacles before you can persuade investors that your company can thrive. What, for example, are the proprietary aspects of the product or service? How will you achieve consistency in quality? What would be the payback period? How long would it take before you become profitable?

Have you focused on a single market segment, or are you aiming to accomplish too much? The outcome will be more successful if you reply in terms of the market and investors rather than your personal preferences.

Numberly has Got Your Back!

Whether it’s your first startup, or you’ve raised funding in the past, writing a killer pitch deck or business plan is always a nerve-wracking experience. Blank pages will haunt you for days unless you have a concrete idea of where to take a head start.

Coming up with great business strategies is as much an art as it is a science, despite what we hope. The concept of a master document with blanks for executives to fill in, similar to how lawyers use example wills or real estate deals, is as fascinating as it is impossible.

Businesses have different marketing, manufacturing, and financial obstacles. Their strategies must account for these differences, stressing appropriate areas while downplaying minor problems. Keep in mind that investors view a business plan as a distillation of the company’s aims and personality.

Let Numberly be your guide here. Our careful and thought-out process ensures your business plan takes into account all stakeholders.

We will help you save time and energy while increasing your chances of attracting investors and clients.