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| Photo Credited to Igor Omilaev |
Surely, in the world of business, borrowing from investors to launch or expand a business is inevitable. Every business needs sufficient funds to survive, not so? Yes because if the business owner does not have the money to start a business, then he or she must look for investors who can fund his/her business idea with their big pocket.
But how do you get the money from investors? How do you convince the investors to finance your business? How do you write a business plan that will attract investors or win their financial support?
So in this blog post, we would like to get you covered with these outlines:
- What is a Business Plan
- Why You Need to Create a Business Plan
- What is in A Business Plan
- How to Win Investors’ Financial Support for Beginners
What is a Business Plan
A business plan is defined as a detailed proposal for achieving your business aims. It also advertises your ambition, your plan for future business and confirms your business viability.
And also it will help you set targets by which you measure the success of your business. It is not enough to have your business ideas in your head because it has a great detail in operation to prove investors that you are a real entrepreneur.
You must also create a business plan that will convince investors, venture capitalists or bankers to invest with you and trust you with their money because they believe you what they read your skillful proposal on business plan.
They know who you are and what your spiritual mission and business mission mean to them. And they will be ready to part your business idea with their venture investment.
And writing it down in operation, you will also be able to make amendments and corrections as you review it than your ideas in your head. Ultimately, the plan has to be well structured, logical and presentable become proper planning prevents poor performance and attract angle investors.
Why You Need to Create a Business Plan
Because if you require to borrow money from investors, it is important to do your homework first because they want to know it first. They want to read it before they will part it with their financial power. You must assign your homework first before you launch out to seek for assistance-work the amount you need, the purpose and how you will pay back.
You need to write a business plan because it helps you to reach your goal. And also it will help you in mastering the art of entrepreneurship. It will help you to get money from investors. It will help you to convince investors and force them to give up their hold from what you require them to finance your startup ideas because every business can benefit from the participation of a carefully written business plan. It is important to have your homework at home together first..
The purpose of the plan is to help you think through the venture and ensure that one is considered all opts and anticipated all potential difficulties. It will also help convince lenders and investors that their money will be in safe hands than those without a plan. The plan will also serve as a operating guide as the plan moves from idea into a viable business.
What is in A Business Plan That You Want to Create it
The essential components of a business plan are as follows:
A. Introduction of the proposed business or existing business
B. Production Of Pattern:
- Production Process
- Manpower/Team Requirement
- Raw Materials
- Machinery and equipment Requirements
- Location
C. Marketing Research Potential
- Demand and Supply level
- Competition
- Pricing(Wholesale and Retail)
- Credit Management
- Location
D. Capital Analysis for the Project
- Initial Capital Analysis
- Ongoing Capital Analysis
E. Solution for Fund
F. Profit Forecast for 5 years
G. Cash Flow Project for 5 years
H. Repayment Process in 2 or 3 years
I. Conclusion
How to Win Investors' Financial Support for Beginners
Tip 1: Ensure that you get the right people because investors don't invest in your business ideas. They only invest in people skills, money skills, sales skills, technology skills, management skills and marketing demand potential.
Tip 2: Show investors the right amount you need financial support for the variables or equipments/materials.
Tip 3: Show them your business ideas and how it works.
Tip 4: Show them the track records of your business transaction..
Tip 5: Show them your sound business management or let them know who right people are, not hiring people in your business.
Tip 6: Show them your sample you produce and package your business idea. It will attract them and win their support.
Tip 7: Show them how much you have invested in your business idea.
Tip 8: Let them know how potential the market is.
Tip 9: Show them how you plan to repay them.
Tip 10: Display them where your location is.
Tip 11: Show them your forecasting sales/ profitable forecast or show them your homework.
The best way to show bankers, venture capitalists and angel investors that you deserve their financial support is to show them a great business plan. It will attract them quickly. Go and do it. Good luck! Stay tuned with us for the next article.
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