If you’re looking to get funding, a grant, or a loan for your business then you’re going to need a solid business plan that will inform and impress those who you are presenting it to. You will need all of your facts to be in order and make sure that you communicate the opportunity that your business represents.
Writing a business plan is not easy, but with these 8 tips, you will be well on your way to getting the business financing you need.
1. Show that you understand the market
You will need to demonstrate that you have done your research on any competitors in the marketplace and ensure that you have a strategy in place to do better than them. Specifically, have a plan in place to carve some of the market share for yourself. Just remember, you don’t want to put down your competition or make them look bad. That would be unprofessional.
2. Read the room
If you are approaching different people, then you should tailor your business plan to suit each potential investor or lender. Your business plan may highlight different aspects of your research or take on a different tone depending on the formality of those you are speaking with.
3. Back up all of your statements with facts
Any assertions that you make will need data to support them. This includes anything and everything that you put into your business plan. So, when you are compiling the information in your business plan, be sure to look at it critically and imagine that you are trying to poke holes in it. If you see any gaps, look for sources of information or evidence to back up your claims.
4. Financial estimates need to be conservative
A big mistake that a lot of people make when they are writing a business plan is that they are too optimistic with their financial projections. This is important as you don’t want to give the person you’re looking to impress have any doubts about the information in your report. If they see a projection that is even a little high, the rest of the data in the plan is suspect.
5. Plan for the resources you have
You need to show that you have a plan in place based on the resources and personal that you have at your disposal. A good rule of thumb is to think of how long you think a task will take or a target to reach and add 15%.
6. Don’t show emotional thinking
You want to appear dispassionate and focused only on facts. Being able to demonstrate logical thinking that is backed up by research and evidence is what will get your business the funds it needs.
7. Get a management team that you can rely on
This is very important for a number of reasons. You want to be able to have a team that you can trust 1000%. How do you show this in a business plan? You make sure that their resumes are up to standard. They will need the past experience to match with what you intend them to do for your business plan to appear plausible.
8. Why will your idea work
Have any other businesses done what you are planning to do? If so did it work and why? Be careful with this one as you want to make it clear that your product or services will outperform the competition. If a company has tried this and failed, why is your idea different? Why will you succeed where they failed.
