If you are a technology entrepreneur or new business owner trying to attract investors and strategic partners, then you need a solid business plan to get their attention. A business plan serves many purposes, but one of the most important things an actionable, realistic and well-thought-out business plan can do is demonstrate your startup’s potential and your serious commitment to investors.
This can have a huge effect on the valuation you’ll receive when raising funds. In other words, the more impressive your business plan, the more likely you’ll find investors and the more money they’ll potentially invest. That said, writing a great business plan can be challenging and we recommend you do it with the assistance of an experienced business attorney.
Below are some of the questions a good business plan should answer if you wish to get partners and investors excited:
The Basics
What will your business do? What needs does your product or service fulfill? How will you make money? What is your approach to solving this need and how is it unique?
The Target Market
Who are your potential customers? Where are they located? How many of them are there? Is the market growing? Is the business scalable?
The Costs
What are the costs and benefits of your product or service?
The Competition
What do they sell and how are you different from them? What percentage of the market share do they currently hold? How will you convince customers to choose your service over theirs?
The Team
What qualifications, skills and accomplishments do the members of your team possess? What role will each of them play?
You should also include a detailed account of the sorts of revenue streams you expect as well as the company’s cost structure (price of rent, salaries, etc.). The names of your suppliers and distribution partners can also be helpful.
Finally, try to temper your enthusiasm and use facts and numbers over flowery language that is difficult to back up. And make sure you’re careful not to let your ambition and excitement inflate the numbers and estimates, since anything that doesn’t match market realities will be a turnoff for investors.
