Your business plan – the foundation of your business and the path to a business loan. So what makes a good business plan and what do investors look for in your business plan?
- A realistic, viable business idea that reflects extensive market research and includes a full analysis of the market and its relevant competition.
- Motivation, credibility, financial responsibility and investment from the owners and directors.
- A manageable amount of risk that is compensated for by a profitable return.
- A road map of goals, targets and milestones that will lead to profitability and the ability of the investors to profitably leave the company within a few years.
- A financial budget that reflects the capital requirements necessary to fuel the operation through the start-up stage, make a reasonable return to the investor and allow for investment in future enhancements and product changes. The financials should include a break-even position, feasibility analysis and realistic profit forecast.
- A comprehensive market analysis, reflecting the demographics of the market, the demand for the product or service, who your competitors are and how much of a threat they are to you.
- A marketing strategy that will ensure that you penetrate the market quickly and position the company in a place where it can grow, capture market share and build your brand.
- A competitive advantage that will meet the needs of a clear target market with stable growth potential.
- A clear understanding of the company’s structure and culture as well as a clearly defined business model and strategy.
- An overall attractive plan that reflects profitable capabilities, stability, entrepreneurship, financial acumen and that will provide a high return on their investment in a foreseeable amount of time.
© Copyright 2015 Biz Guru Ltd
Lee Lister, writes as The Biz Guru, for a number of web sites including www.StartMyNewBusiness where she provides information and products for the new business. With over 20 year’s management and business consultancy experience with businesses large and small as well as being a serial entrepreneur, she now helps others set up, develop and market their businesses.
If you would like a professionally designed business plan with success written all over it – then contact us at www.bizguru.us
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