If you are talking with investors or banks than there are a few things that definitely have to be in every business plan.
If not, nobody will ever trust your financial plannings.
Below I will give you some things that are really 100% necessary to have a chance for an invest, of course these are only some examples - a complete plan including a financial modeling will have a lot more.
Talk about your Risks
One big failure of startups at the beginning ist, that they are always talking about the chances of the project but never about the risks!
Every invest has risks and if you do not talk about them, than the investor will think about what could happen by himself and he will have a bad feeling about your reliability because you are not aware about potential problems that could appear.
But if you give a realistic overview about the risks in this business than you will have the following advantages:
- The investor will have a good feeling, because he knows that you are not a dreamer and you are aware of all the risks that are in this business.
- Also you will have the chance to talk about the risks and why you think that you can manage this risks.
Of courses you should also talk about the great chances you have and after all you should point our that it is more likely that the chances are much better than the risks and that this business will be successful.
At the end if you mention a risk that could happen and in the next part you will give a solution for it, you will be able to make an advantage out of this point!
The Executive Summary is the first thing that a possible investor will get. It is a summary about your project and has to give the investor a short but complete picture of your business. After studying it he will decide if he should pay your business more attention or not.
What is important about your summary:
Make it AFTER you made the complete plan:
Even it is the fist thing the investor or bank will see it should be the last thing that you prepare. You will need all results of your financial planning to make this short (about 2 pages) overview about your business.
Do not promise things that will not be proofed in your business plan:
Another reason for making the summary after you complete your full business plan is, that you only should claim things in the summary that you can proof later.
If you make the summary first it can be, that later in the plan you will have totally different results that you thought before.
What has to be inside the Executive Summary:
In the summary you should talk about:
1. Your product (what you are going to produce, what is the benefit for your customers)
2. Your market (why your market is or will be big in the future)
3. Strategy (in short words: What is your strategy how to be successfull)
4. Finance (what is the total invest, what will be the ROI or the income in the next 3-5 years)
5. Management (who you are, what is your team, why you are perfect for this business)
Information about you
Talk about you and your team!
A very important point in a business are the people behind. Your investor have to have the feeling that you are the right one.
In the written part of your business plan: Why are you the right person?
In the point where you are talking about the management you should also talk about you and your part:
- What will be your position in the business?
- Why you are the right one for this position?
- Do you already have partners with experience?
Than tell about them.
In a personal meeting with the investor: Show that you are an expert!
If the investor is interested, for sure there will be a lot of discussions with you and him.
In this discussions it is very important that you are able to convince him about your expertise!
If you have a perfect business plan (maybe made from a professional business plan service company) but in a discussion you have no idea about the business and the figures inside, than you will not leave a good impression!
So my advice: Better make the complete plan by yourself, you will be aware of all figures inside and you will learn a lot of the business. This will help in your discussions to answer all questions. So better make a guided service like our offer for a business plan instead of asking a professional company to make it a s a full service.
What makes you special
It is not enough to have good plan and a good market. Investors want to have "something special" about you and your product.
Even if you do not have really a "very special thing" you have to think about what could be the reason for customers to buy your products.
The easiest thing would be to have special technology (for example DESERT technology, multi wire technology or hethero junction), but even if you have no TECHNICAL USP you can create another USP (service, design, whatever!).
Be creative and point out why your product will be the best choice for customers in your market.