Raising Capital-Start Ups Step 2 | Step2 |
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Step 2 Develop a business plan that tells your story in a clear and compelling manner Feasibility Business Plan: Slanting the information to make your business plan read "better" is an enormous mistake: The initial writing of the business plan is for you and the feasibility of your idea. It should be brutally honest and practical. Ignoring information that needs to be considered will only lead you to make poor decisions later on. Do not make the decision to go forward by conning yourself about the plan’s potential for success: The end product of the plan should be the deciding factor to go forward or not. Absolutely no one is going to invest more in this project than you. Your cost is in time, money and lost opportunities. The Investor Business Plan: Are they willing to write you a check for $10,000 or more dollars?: After reviewing the feasibility of your business plan you may decide to go forward. Now you can use that information and create a business plan for presentation to potential investors. In the case of Small Investors your entire presentation must be contained within the Business Plan. You may need to present your Business Plan to 5 small investors for every 1 you actually convince. To convince 100 investors you would need to present it to 500 prospects. Therefore you must write the Plan in a very convincing manner and anticipate what the prospective investor needs to read.
A clear and compelling vision of your idea, well thought out, and properly presented to the correct investor will have the potential to raise the funds you seek. All too often I hear people claim that their business plan is really great but they haven’t raised a dime in months or even years. The investor will decide for or against your idea within the first 3 pages of your business plan. Many of the ideas that are submitted to me fail because they are not expressed properly within the business plan.
Investors Reward:
The more compelling the business plan reads the less you need to give away: Once you have completed your Business Plan you need to structure what you are offering the potential investor(s). There are many different ways to structure the Investors Reward. You need to look at the merits and financial projections of your own deal and act accordingly. Each deal should be structured based on that deal’s circumstances. Attorney Review of Plan A securities attorney should review the business plan for any language that may not be appropriate. |