How do you write a promising entrepreneurship business plan that can attract funding from investors? Business plans are written in formal documentation that briefs business goals, explains why the business goals are attainable and describes the plans to reach the goals.
An aspiring entrepreneur will need to prepare a business plan when he is ready to set off business objectives. Help his team understand what they need to work for and when he needs to get help with funding.
Even an old and established organization will need to prepare an entrepreneurship business plan every time it will think of attracting investments. When it needs to hire new employees, defining new objectives for the managers, doing valuation of the business, developing new business alliances and expanding or selling the business, is also an important time to have an entrepreneurship business plan.
The point is – you’ll have to work hard to create business plans that can meet the defined objectives of your business and at the same time being able to attract necessary funding. Below are some essential tips you will find useful in crafting your business plan.
Assess the Business Potential before Creating the Business Plan
So, you want investors to fund your business. Have you assessed your business potentials? You yourself need to be convinced of the possibilities before you approach the investors and try to impress them.
First, write down some of these questions to come up with an impressive business outline:
1. What initial investments will your business require?
2. How are you going to use the money?
3. When will the business start making profits?
4. When should the venture capitalists, or investors expect return on their funding?
5. What are the projected profits for the business over time?
6. What if the business fails?
7. What are the backup plans?
The better you explain these aspects in the business plan, the higher will be the chances that you will receive funds as much as you want.
Recommended Format for Writing Entrepreneurship Business Plan
Take time to create a clear and brief business plan format. An entrepreneurship business plan should ideally start with an executive summary. Then expand with company description, a section for market analysis, service or product line, marketing and sales plans, organization and management specifics, financial projections and finish with a request for funding.
In short, the entrepreneurship business plan should be able to tell investors why they should risk their money in a quick manner. Try to keep the length of the business plan within 25 pages approximately. It is also important to give special attention to the “executive summary” section.
As bankers and independent investors receive too many business plans for funding, they sometimes go straight to the executive summary section to get an outlook. The executive summary is the first section of a business plan. It should be able to provide a condensed overview of what your business is all about and how you think you’re going to accomplish the goals.
Must Provide Backups for every Claim made in an Entrepreneurship Business Plan
The most important rule for the success of an entrepreneurship business plan is – keep the backups for the claims ready to show to the investors. They need to see how feasible your claims or business visions are.
No matter how big your financial projections look like, investors looking for profits on their investments will need to see whether achieving those objectives will really be practical.