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Investors Want to be Benefited With Expertise of Writing a Business Plan — CEO Insights

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You’ve turned your business concept into a scalable, high-growth company. You’ve established some initial market traction and are now looking for your first round of finance.

So, how can you make sure your company plan is ready for investors? Begin with a lean strategy.

A Lean Strategy is the best investor-ready business plan.

Focus on establishing a strategic lean business plan while producing a company plan for investors.

A standard business plan is longer and less adaptable than this type of strategy. Your Lean Plan will help maintain the vital information about your firm concise and easy to examine, similar to the executive summary. This makes it ideal for pitching to investors while also removing the constraints of a typical company plan.

It’s much easier to edit, expand on required sections, and use outside of being a presentational document, in addition to being simple to evaluate. Consider it a tool for gaining useful insight regarding your firm, its potential for success, and areas where your business plan may need to be tweaked. Things that any investor should know and that you should know as well.

What should be included in your investor-friendly company strategy?

Make sure you’ve completed your entire Lean Plan before sending along your executive summary and financials. It will cover some of the same ground as your executive summary, but it should go into greater depth while being concise. Here’s what your Lean Plan needs to include:

  • You’re fixing an issue or meeting a need for your customers.
  • How you’re fixing the problem with your product or service
  • Your channels of distribution
  • A simple marketing strategy (the results of your market research)
  • Your competitive advantage and competitor analysis
  • Financial predictions that include a complete cash flow forecast
  • Key business achievements to date, as well as a calendar of predicted future milestones
  • Key members of your team, as well as business owners and advisors, are all rooting for your success.

The most important aspects to consider while writing an investor-ready business plan

Even if you pitch to angel investors or venture capitalists, it’s possible that they won’t read your entire plan, even if it’s a Lean Plan. Anyone interested in investing hundreds or even millions of dollars in your enterprise, on the other hand, will want to conduct their homework beforehand. They’ll be particularly interested in your strategy plan, business model, and financial forecast. The parts that follow will go over all of these points.

 Be specific while drafting summary

The brief summary you share with an investor the first time you contact them should be brief—one to two pages. It should not include any irrelevant information, but it should support and outline the financial estimate you offer. In a nutshell, this should summarize your business model, strategy, and the research that led you to that particular structure.

Make sure your brief summary is based on following information:

  • Who you are, your name, company name, and contact information
  • What you have to offer and the problem that your company solves
  • Your intended audience
  • What much of startup capital are you looking for?
  • Your company’s size and scope
  • Are there any other important aspects that investors should be aware of?

A comprehensive financial forecast

Investors will want to know if you’ve thought through the financial feasibility of your firm, regardless of who you pitch to. You can demonstrate this by referring to your financial forecasts in your overall financial strategy.

A predicted profit and loss statement, a projected cash flow statement, and a projected balance sheet should all be included in your entire financial forecast.

The simplest and most accurate method is to develop the financials from the ground up, beginning with determining your market share. To begin, determine your TAM, SAM, and SOM. That is, determine your total addressable market (TAM), then determine what percentage of that market, or segmented addressable market (SAM), you want to target, and finally determine your realistic market share (SOM).

With your financial estimates, make sure to answer the following questions.

  • What is your typical client lifetime value?
  • What will it cost you to acquire them (acquisition costs)?

If you want to raise money, you’ll need to show that you’ve had some initial success. Even if your financial results aren’t strong, you may still create detailed forecasts and explain how you’ll keep reviewing and refining them as your company expands.

What should you do to improve your pitch presentation?

When you initially approach an investor, be prepared to present sound financials as well as an engaging executive summary that piques their interest. They’ll inquire about whatever extra information they require. Prepare your pitch deck and presentation after your Lean Plan is complete and your executive summary and financials are ready to send. Before you start talking to possible investors, keep the following points in mind.


Complete your homework

You’ve probably done a lot of research on your target market, possible competitors, and the clients you’ll be serving. But, before you pitch your company, make sure you know who you’re presenting to. You’ll want to make sure you know who you’re talking to, who they’ve previously backed, and what they actually want to receive out of your presentation.

The idea here is that by the time an investor says “yes” to a pitch meeting, you’ve already completed all of your homework, created a detailed plan, and are ready to answer any questions that investors may have.

Come up with a tale

Many of the same aspects will appear in your pitch as they did in your Lean Plan, but don’t just read your executive summary to investors when they’re in the room. Make use of storytelling to tell a story about who your consumers are and how your solution is better than everything else on the market.

You can also concentrate on your firm’s mission, culture, or anything else that distinguishes your organization and contributes to its viability. Make this a part of your investor research if you can to ensure you understand which aspects of your business they care about the most.

Rehearse your pitch

Remember that, like your Lean Plan, your pitch should be succinct. Only by rehearsing what you intend to address and how you’ll use your pitch deck as a resource can you achieve brevity and know how to answer particular queries.

Practice your pitch in front of your family and friends to become used to the delivery. Solicit questions from them about topics they don’t understand so you can start anticipating and preparing for the toughest questions investors will ask.

Keep your company pitch short and to the point

When you’re ready to seek funding for your firm, resist the impulse to send a potential investor a 200-page business plan. Keep in mind that every day, investors are inundated with pitches much like yours. Make it as simple as possible for people to understand who you are and what your company offers. Just make sure you have a solid financial plan in place and a well-thought-out Lean Plan in case you get a callback, so you’re not caught off guard.

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