Before writing your business plan, try to put yourself in the shoes of the investor and think about what you would be looking for. While it is important to have details about the type of business, location, business structure, financial projections and markets addressed, you need to capture the investor’s attention first.
1. Executive Summary – The executive summary is the first page an investor will look at it. It should be the introduction page of your business plan that could act as a stand alone document. In just a single page you want to say the most important aspects of your business. The best way to do this is to leave this page for last. Once you have finished your business plan, go through and find the most important sentences about what you offer, how you will offer it, the markets you intend to capture, your objectives and strategies.
2. Management Team – The management team section should be the backbone of your business plan. You can have an incredible idea, but without the right team to actualize your business, it will not succeed. Investors want to see your background in the industry and business experience.
3. Unique Selling Point – It is rare to sell a product or service that does not already exist in the market. However, it is important to be different in one way or another. This could be in terms of how the product or service is delivered, how it is presented, the method it is distributed or the structure. You must also prove that there is a demonstrated need for your product or service with a large enough market potential to make the investment worthwhile.
4. Product and Pricing Strategy – It is important to be clear about how you intend to reach your markets. How will you price your product or service? You should describe the business structure and product strategy you intend to use in order to make your company an attractive option for consumers.
5. Financial Projections – While it is important to show attractive financial projections, investors understand that this section is fictitious. It is impossible to determine exactly how much things are going to cost and how the market is going to react to your product or service. Therefore, rather then trying to show an enormous profit margin and revenues within the first month, try to be modest. Try and be as realistic as possible. Always assume unexpected obstacles will come up that will cost more money and add contingency prices to your costs.
Written by Shosh Pincus
PPM is the leading U.S. entrepreneurial firms that specialize in writing private placement memorandums (PPM) and linking investors with entrepreneurs.
Since 1999, the founders of PPM have provided professional business writing services, such as a PPM or business plan, to more than 2,000 businesses worldwide. Our company is considered to be the most cost effective, efficient consultants for private placement memorandum development in the United States. We are Wall Street’s, and by extension, New York’s private placement leaders.
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