How To Attract Investors By Showing Business Planning

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How To Attract Investors By Showing Business
Planning
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• A business plan is almost essential for
  entrepreneurs looking to raise money to help
  finance their businesses. In fact, business plans
  are so closely related to fundraising that many
  entrepreneurs consider them suitable only for
  presentation to investors and overlook the
  managerial benefits of planning. (BBGV121220)
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• But for those entrepreneurs looking for funding,
  a business plan accomplishes several things.
  First, it helps convince potential funding
  sources that the business owner has thought of
  the idea. It also provides any actual investor
  with a set of financial metrics for which the
  entrepreneur can be held accountable.
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• In a sense, a business plan is a ticket into the
  financial dance. It would be overly simplistic to
  say you need to have a plan to get funding. But
  it's not too simplistic to say that a good plan
  will help you raise your funds faster, easier,
  and more fully than you could without it.
• Before looking for investors, you need to know
  exactly what you are looking for and where that
  money will be spent. You have to justify the
  amounts you are asking and be specific Investors
  don't just write checks with no idea where the
  money will be spent.
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• You can certainly ask for a little more than you
  need in the hope that the negotiation will bring
  you the amount you really need for funding, Or
  something reasonably close. It is also important
  to maintain your credibility as you will likely
  need additional funding as your business grows.
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• Well thought out and justified ideas are taken
  seriously. Its also beneficial to take a few
  minutes to make sure your business has the
  potential to be successful before digging for
  that hard-to-get cash. For most of us, our wishes
  about where we would like to go are not as
  important as our company's ability to get us
  there. In other words, if you choose the wrong
  activity, you will not go anywhere.
•  Many companies never get past the planning stage
  because their would-be founders, as part of a
  logical and consistent planning process, test
  their assumptions and find them lacking.Test
  your idea with at least two variables. First,
  make sure that your business makes profitable
  sense. Second, lifestyle, because who wants a
  successful business they hate?
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• Assess the potential of your business
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• Answer the following questions to help you
  summarize your company's prospective. There are
  no wrong answers. The aim is simply to help you
  make a decision to what level your future venture
  is likely to match your goals and objectives.
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• What initial investment will the company
  require?, How much control are you willing to
  give to investors?, When will the company make a
  profit?, When can investors, and you, hope to get
  return on their money?, What are the expected
  profits of the company over time?, Will you be
  able to do the business full-time financially?,
  What kind of profit distribution you can you
  expect ?, What are the probability of the company
  going ruined?, What will happen if it does?, Do
  you have another backup plan?

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• Keep these tips in mind to help you win the loan
  you are looking for Spend more time working on
  the executive summary. Because investor get lot
  of business plans so many investors look directly
  into the executive summary to know what your
  business plan is. If you fail to capture their
  interest in your executive summary, go back to
  the drawing board and try again.
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• Make sure your business plan is complete. You'd
  be surprised at the number of business plans sent
  with important data missing.
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• Double and triple checking is required to make
  sure all-important components are included. Even
  when using business plan software, people skip
  sections or decide that one area isn't important.
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• Don't leave anything to chance. A properly
  written and complete business plan gives you a
  good opportunity of success and a better chance
  of getting the financing you're looking for. Be
  able to back up everything you have on paper if
  you are asked for more details. Although the
  business plan should have all the answers,
  investors, bankers and venture capitalists are
  shrewd and ask questions that cannot be answered
  in the plan. Be ready to respond to anything they
  throw at you. Expect the unexpected and get
  ready.
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