10 sure shot tips to implement
By Harshit Malik
When it comes to financing your startups, investment comes in all shapes and sizes. In recent years the concept of Angel Investment has grown considerably and thus those seeking for investment hold great chance of getting investment.
Here are some tips to write a business plan to propose to Angel Investors:
1. The starting point for any business plan should be the perspective of the audience. While making a plan mainly focus on the purpose and funding security. Tailor the plan for different audiences, as they will each have very specific requirements. For instance, a potential investor will seek clear explanations detailing the proposed return on their investment and time frames for getting their money back.
2. If you are seeking investment for your business, it is important to clearly describe the investment opportunity. Why would an investor be interested investing in your business rather than leaving money in a bank account, shares, or investing in any other business? What is the Unique Selling Proposition (USP) for the business?
3. Market size should be kept in mind. The entrepreneur should undertake market research and ensure that the plan includes reference to the market size, its predicted growth path and how they will gain access to this market.
4. It is important to understand the competition, its nature and the base in any business industry.
5. Make a concise plan but include enough details to ensure the investor has sufficient information to make informed decisions. The business proposal should reflect a sense of professionalism, with no spelling mistakes, realistic assumptions, credible projections and accurate content.
6. Undertake research on what a business plan should contain. Include sections about the Company, Product/Service, Market, Competition, Management Team, Marketing, Operations and Financials. Apart from only textual content, the plan should also include pie charts and spreadsheets.
7. Costs should be documented and sales predictions should be made both conservative and realistic. Prepare a simple cash flow and break-even chart. This will help the reader to understand how many sales you must make to cover your costs and also how much financing you must raise to start up successfully.
8. Your business plan should have a ‘wow factor’.
9. Once you have completed your proposal, don’t forget to review it. Select someone detached from the process who can offer analyses and criticism on all aspects of the plan.
10. A business proposal should always contain specifics regarding dates, deadlines and specific responsibilities. It should be constantly reviewed and updated.