December 20, 2018 @ 9:00a PST, Irvine, California, USA
Running a business without a plan in place is like sailing a boat without a compass. You may be doing everything you think will make your enterprise flourish, but it’s not really helping it gain leverage. Since we’ve helped many business owners grow incrementally, we can tell you with certainty that you need a business plan.
But what can you do to make this plan a road map for your business? We are going to recommend some tips that we’ve shared with other entrepreneurs who faced many challenges and tribulations upon their journey to the proprietor path.
Additionally, it should give your investors a quick, but effective overview of your business and how it will be operated.
The first thing you need to understand is that your business plan should forecast your success. For that reason, it should highlight key objectives for your enterprise that cover the next 2 or 3 years. Additionally, it should give your investors a quick, but effective overview of your business and how it will be operated.
Of course, no exceptional accredited investor is going to fork out cash just because you have a plan in place. They don’t know it will succeed or not, but you do! As you pitch your milestones to them, it is impossible to convince them of its integrity unless you are 100% committed to it. That drive is what investors look for because they know that it can get your business out of tricky situations.
Investors see business plans all the time. To make sure they take a second look at yours, it needs to mention comprehensive strategies.
Think about it. Would you trust someone who panics at the first sign of trouble or someone who remains calm because they have a plan B and C? Investors see business plans all the time. To make sure they take a second look at yours, it needs to mention comprehensive strategies.
RELATED STORY: Chase Knowledge Over Money – Capital Raising Series 1 of 5
Of course, that does not mean you should get all ‘gung-ho’ and draft a plan that spans 100 pages of pure content and fillers (aka bunch of fluff just to sophisticate your business). Remember, no accredited investor or asset manager worth his/her busy schedule has the time to go through everything you have to present. The plan has to be easy to read and straight to the point.
Here are some elements that you should consider:
Company Introduction and Overview – This should include basic details about the business such as its official name, address, website URL, contact details, and legal status. Word to the wise, if your business is S-Corp, C-Corp, or LLC incorporated and trademarked, it will be more attractive to investors.
Operations and Procedures – This includes strategies and methodologies you plan on following. To ensure investors understand where you are coming from, this section should include the location, equipment to be used, and premise of the business. The operations and procedures section should also include the distribution strategies you wish to employ and how they will be used to address customer needs.
Remember, investors buy into the people behind a company as much as they are influenced by its success forecast.
An Executive Summary – Remember, investors buy into the people behind a company as much as they are influenced by its success forecast. This is why no business plan is complete without an Executive Summary that ties it neatly together. The summary should appear at the end of the plan and should explain the experience level, background, and roles of the executives involved in it.
The bottom line is that you need a road map that will not only convince investors to understand your vision, but also to fund your endeavors.
Ꙉ Thank you for reading. Keep in mind, Greenfield means New Markets!
ABOUT THE AUTHOR: Carlo Desierto is a serial entrepreneur with years of experience in business startups. He has founded, built intrinsic value, and sold several companies in which he sits as an adviser for the Board of Directors. Carlo has interviewed over 200+ entrepreneurs and published mini-biographies for new digital media channels relating to entrepreneurship, health, self-help, futurology, and the green industry. Most of all, Carlo loves to create teams. Facebook | @Instagram | LinkedIn