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How to write a business plan that will attract investors to your small business

If you are a small business then it is important to know that your business plan, will serve as much more then just a roadmap, for your business. If at any time you are looking to attract the interest of potential investors, you will need to have stellar business plan that stands out, from your competition. Your business plan should be investor ready, for when that day comes that you seeking additional working capital. You want to be able to show potential investors, in writing, why they should invest in your small business. The way your write your business plan, will be the documentation that show the potential of your small business. Here is what you need to know about how to write a business plan that will attract investors to your small business-

  • Start by taking your potential investor's point of view-It is important to remember that any potential investor, most likely gets at least hundreds, if not thousands of business plans, every year. This means you will need to write your business plan, for your small business, in a way that attracts the attention of any potential investor. If you already have a business plan, for your small business, it can be helpful to go over it, with the mindset of whether or not, you would invest in your own small business, if you were looking, for an investment opportunity. Remember, one of the key things that any potential investor is looking for, the potential to make a healthy return, with the lowest amount of risk, for their money. You will need to be able to show that you can position your business, as the expert in the field.
  • Show that you have the right people in the right jobs-Potential investors will be closely looking at the management of your company. They will want to know that everyone who is in a management position has the expertise, experience and dedication to make your small business, a success. That means whether or not you attract an investor, will literally rest on the shoulders of everyone who works for you. Your business plan will need to know that all management has the skills, experience and passion to make your small business a successful and long running enterprise. The bottom line is that successful investors know that they are not really investing in the product or services, of your small business, but rather the people who run it.
  • Demonstrate that you know who your customers are-Many times inexperienced small business owners try to position their business, to be everything to everyone. This is highly ineffective. Investors know that there is a specific group of people who are more likely to buy your products and services, and they will want to see that you know that, as well. You will have to outline in your business plan, exactly who your target market is, how they shop and why your products or services, will appeal to them. You will also need to show how your marketing strategy will work to attract this target market, to your small business. Finally, you will need to be able to show that your target market can continue to expand, for long term growth potential.
  • Outline your competition-Small business owners should never assume that they don't have competition, or that their competition is inconsequential. Successful businesses of every size must figure out a way to deal with their competition and keep them from taking their business. Your business plan should detail who your biggest competition is, what they offer, and how you will prevent them from your market share. Most investors will need to know that you have a complete understanding of your market, and your competition, before they will even consider investing their money, with your small business.
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