How to Write a Business Plan to Attract Investors

Posted by Anonymous , 9/4/2007 Tags:WriteBusinessPlanAttractInvestors
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How to Write a Business Plan to Attract Investors

Introduction

Your new business needs a group of investors who are willing to provide funds to help you create new products or hire new employees. Venture capitalists and philanthropists are always looking for innovators who have an idea that is on the cutting edge. Your idea may be great, but if you do not write a business plan that attracts investors, you will face a number of challenges in the early stages.

Instructions

Difficulty: Moderately Challenging

Attract Investors with a Comprehensive Business Plan

Steps

1

Step One

Learn the parameters of venture capital and business plan contests before you write a plan. You should not utilize a general business plan for every meeting with investors because every investor looks for a different combination of variables in a business idea. Check out the Venture Capital Investment Competition at the University of North Carolina for tips on how to get investors on board (see Resources below).
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Step Two

Impress investors with a clear statement of purpose for your business. Your statement of purpose should be a single paragraph of concise language that defines the end goal of your business. For example, you can attract investors by stating that your company's ultimate goal is to top the local market within 5 years.
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Step Three

Provide biographical information on all members of your ownership team. Your business plan should feature a section about each executive and high level staff member, including past successes in starting new ventures. The unique nature of your ownership team can attract an investor who is more concerned about office dynamics than specific products.
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Step Four

Complete a projected inventory of every piece of equipment needed to start your business. You need to write down equipment names, a one sentence description of its function and the average price found from leading providers.
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Step Five

Calculate the funds you currently have available to you when approaching investors with a business plan. Your savings accounts, property and other assets demonstrate financial wherewithal that is critical in convincing investors of your ability to startup a business.
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Step Six

Envision your company's profits for the first year. You can estimate projected profits by taking a modest amount of sales for your particular industry and comparing it to your operational budget. Profit projections give your investors a measure of your company's scale and it gives your employees a goal during the initial year of business.

Overall Tips & Warnings

  • Specify the unique features of your business that make it different from similar companies in the community. Create a comparison chart between your proposed services and those of the competition to draw in investors.

Overall Things You'll Need

  • Statement of purpose
  • List of proposed inventory
  • List of available funds
  • Estimate of projected profits
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