Business plans and investor enticement

Every small business owner needs to clearly understand that planning is a vital part of starting any new business. Planning is also the key to being able to attract investors. Attracting investors for a business start-up involves a formal written plan called a business plan. The best way to do this is by writing a clear and concise business plan.There are several key elements that need to be addressed within this plan. It is important to keep in mind that the order of these components is not nearly as important as the content. You should focus on keeping the information within the business plan both thorough and logical. In addition you should keep in mind that not every category that is listed here is pertinent top every business.You business plan should focus on the specifics of your small business.If the category is not relevant, you should consider omitting it or combining complementary information together into one section. The bottom line is that your business plan needs to convince an investor that your business will offer them a return on their money. Here is outline of what you business plan should include when looking for investors for your small business-

• Company Summary-This part of the business plan outlines the form of company ownership. You will need to tell your potential investors if your company is a sole proprietorship, partnership, or corporation.You should also include start-up plans as well as a company location should be summarized.
• Products and services-This is the part of the business plan where you will detail exactly what you will be manufacturing and selling.Product and service descriptions, future product and service descriptions should all be disclosed here.You can also include competitor comparisons in this section.
• Internet Presence-This is where you all add any information about internet or website access.Experts advise that if your company is going to utilize the technology of the Internet for advertising, e-commerce, or customer communication you should consider covering marketing strategy and development requirements.
• Market Analysis Summary-It is especially critical that you outline exactly who is your target market.Your investor needs to know that you know exactly who you will want to sell to. In this section of the business plan you can also identify market needs, trends and future growth opportunities.You want to let you potential investors know where and how your small business will fit with and exceed what the industry already offers.
• Industry Analysis Summary-Here is where you can address industry market needs, trends, and competitor strengths and weaknesses.This allows your potential investors to understand that you are familiar with the needs of the industry.
• Marketing Strategy-In this section you want to outline the pricing, promotions, and marketing strategies of your products or services. Investors know that marketing drives the success of the company so without a clear marketing plan you should head back to the drawing board.
• Sales Strategy-This is where you will discuss sales forecasts and sales goals.You will need to be able to clearly outline how your product will be sold and what methods you will need to employ.
• Management Summary-You will need to include the organizational structure of your business. Here is where you will list the key management personnel. You will want to show your investors that you have team members with proven track records of professional accomplishments.
• Financial Plan-Despite being later on the list this is perhaps one of the most important sections of your business plan. This is the area that will include projections of profits and losses, cash flow, and long-term plans. This is also a good section in which to outline any funding that is needed.You should include specific dollar amounts and concrete justification for the funds. Keep in mind that this is probably the section that investors will pay the most attention to. If crunching numbers is not your strongest area, you should consider enlisting the assistance of a team member with finance savvy or hiring an independent professional.
• Executive Summary-This section is meant to be a simple overview.This area should highlight company objectives, company mission statement, and specific keys for the success of your business.