A well-crafted business plan helps secure financing for fledgling companies. Such a plan should be succinct, logical, and emphasize solid facts and research over literary style. You may want to consider having distinct versions of your plan for traditional bankers, individual investors, and venture capitalists.
Here are some tips compiled from expert advice on creating a business plan that is right for your company.
Be Aware of the Competition
When you are describing your competition, give specific names and delineate what makes your company distinct from these others. Resist the temptation to disparage them. Stick to facts and avoid rumors that you cannot substantiate.
Provide Proof of Product Claims
When you describe your products or services, explain clearly why your idea works while others don’t. Offer proof of your claims in the form of documented research and functional prototypes. Every definitive statement you make should be backed up by facts. If you can’t support an assertion, leave it out of your presentation. Avoid superlatives and flamboyant adjectives, and let solid information give credence to your claims.
Introduce Your Management and Location
Be sure that the expertise of every member of your management team can be backed up by solid credentials. If there are gaps in the necessary skill sets of your leadership, add an advisory board. Include resumes of your management team and advisory board members in your business plan. Describe in detail the location and facilities at which your company works.
Make Projections Realistic
Financial estimates and projections are essential parts of a business plan. However, do not use hyperbole when forecasting profits and market shares. Be conservative when you estimate finances, and never overestimate. Be sure to include descriptions of investor payout options. To prevent your financial projections from appearing amateurish, hire an accountant who has the expertise to put them into standard business format.
For more advice on creating business plans, look to Blackwater Capital Funding.