Are you starting a business? Do you realize that you may need investors to help take your company to the next level?
If you find yourself in this position, it’s imperative to create a high quality business plan that provides the right information and answers a variety of key questions.
Creating a business plan for the sake of seeking an investment is easier said than done. However, if you take the right approach, you’ll find yourself in better position to secure the financing you’ve been seeking.
Here are some questions to answer when creating a business plan for investors:
— How much of an initial investment does your business require?
— Do you foresee needing more money in the future?
— When do you expect the business to turn a profit?
— How much control are you willing to give up by bringing investors into the company?
— What are your financial projections for the first year? How about after three and five years?
— What will happen if the business fails for any reason?
— What are the reasons why the investors should invest in your business and not another?
You can answer these questions, among many others, by creating a solid business plan.
As you move through the process, don’t hesitate to consult with legal and financial professionals. Sometimes, you need a little bit of help on your side in order to create the right type of business plan. Once you have this in hand, you’ll feel much more comfortable reaching out to investors, pitching your company and negotiating the best deal.
Source: Entrepreneur, “How to Create a Business Plan Investors Will Love,” accessed March 09, 2017