How to write a business plan that will attract investors

If you are a business owner then you know the importance of having a business plan. A business plan can act as a roadmap or guide, for your business. You can use your business plan to help you plan out a multitude of functions that apply to your business. However, one of the most important functions that your business will play a part in, is attracting investors. All business owners need to strive to have a business plan that is investor ready. If you are able to do this when investors are interested in your business, you can then show them in writing, why your business would make a great investment. You can use your business plan as documentation that shows the potential of your business. Here is what you need to know about how to write a business plan that will attract investors-

• Look at your business plan through potential investors eyes-You want to take a clear and concise look at your business plan, through the eyes of a potential investor. You need to honestly ask yourself if you would be drawn to invest in your business, if you were reading this business plan, for the first time. Keep in mind that you will need to convince a potential lender that you can offer them long term returns that are much higher, then even their initial investment. You will have to make it worth it to them to risk their hard earned money. You will also need to inspire confidence in your ability by showing that you can position your business, as a leader inyour industry.
• Establish the expertise of your management-Potential investors will be looking closely at who will be running the company. Their scrutiny will not stop with just the business owner. Everyonein your business will play a part in determining whether or not you attract a potential investor. It is crucial that your business plan show that your management has the knowledge, skill and passion to make it a success. Savvy investors know that what they are really investing are the people who run the company, not the product or services.
• Show that you know your target market-Any potential investor is going to want to see that you know how you are selling to and how to reach them. You will need to be able to identify the needs and requirements of your target market. You will also need to be able to detail your marketing strategies. Your business plan will also need to show that you can grow your customer base, as you expand your marketing reach to your intended target market.
• Detail everything that your business provides-Many business plans often lacks this fundamental information. Business owners should realize that a potential investor's first introduction to what your business does, will come through an investor ready business plan. This makes is crucial that your business plan can explain in detail the products or services that your business provides. As part of this you will also need to explain how your product or service fits into the market and why your customers will seek you out to buy it. If you cannot demonstrate that there is a clear need, for your product or service there is little chance that you will get any money from a potential investor.
• Information about your competition-Every business has competition, and your investors will want to know, what you know about them. Your business plan should detail the competition and how you will prevent them from taking your business. Keep in mind that any potential investor will need to know that you have a clear understanding of the competitive market, before they trust you with their money.