So
you have figured out that you need a plan to succeed in your business
venture. You now know that having a business plan is your road map to
success, without one your company may fail. Now it’s time to put it
all together and build the plan. Your business plan should
explain how you would solve a solution to a problem. There are many ways to
approach on what to place in your plan. It is left up to you and your
team to decide on what route to take. You should dedicate many hours on
writing a well thought out business plan to cover everything that you need.
If
you are looking for funding for your business plan then these are some key
areas you need to focus on. No, I am not saying that the other
sections are of no importance. But you would have to ask yourself if I
were investing in a company what would I look for. You would probably
tell yourself I want to know about the risk associated with this company, how
much will my return on investment be and how does the company plan to market
this business product or service.
After
carefully researching what investors are looking for in a new business venture
one of the sections in the business plan that I would incorporate would be the
financial section. The financial section is the backbone of a
potential successful company. You need a solid financial road map, to
make sure you are not in over your head. You company needs to be able to
make payroll and accounts payable in a timely manner. Starting with a solid and
though out financial plan, you will likely be able to exceed in the good time
and weather the bad. Few surprises happen when you do proper planning.
Another
key section to focus on for potential investors would be the risk analysis
section. This is a particularly important section for start-ups and small
business. James Park said, “The objective in
writing a business plan is often to secure capital to start the business, to
secure additional working capital for operations or to raise money for
expansion. Since they often have more limited operating histories,
entrepreneurs and small business managers have not yet demonstrated their
ability to cope with business risks. Potential equity investors and lenders
expect their business plans to provide assurance that management recognizes
these challenges and is prepared to deal with them.”
Marketing
strategies sections serves as another key area to focus your attention on for
potential investors. It serves as the fundamental foundation of designed
to fill market needs and reach objectives. Normally, marketing strategies
are laid out as a multi-year plan, with a tactical plan detailing specific
actions to be complete by the current year. When developing your
marketing strategy the key things you would need to know who will buy it, why
and how will you get it to them. Some external factors that may affect
your marketing strategy might be the political climate, legal environment,
economic, technological and cultural.
Two
of the key investor Reid Hoffman and David Skok are
looking for specific information when deciding on if a business plan is worthy
of an investment. Some of the questions they might ask is how will reach your
audience? What is your unique value position? Will your business make money?
Identify your risks? How will you mitigate your risk? What milestones are
you raising money for?
There
are several websites and tools available to help you in formulating the correct
business plan for your company. I just wanted to provide an overview of
some of the factors that investors are looking for in today’s business
plans. For further research visit the U.S. Small Business Administration website
for information on planning your new business.
The beauty of music is the creation of where it
comes from, so be unique and different!
Sing, write, compose and produce from your
heart!
