A Business Plan, as all good entrepreneurs starting out in life should know is foundation, or rather a springboard, towards establishment and growth of a new business. A business plan is an essential tool for companies raising capital – and your business plan needs to be Investor Ready.

What is an Investor Ready business plan?

An investor ready business plan is a document that has been professionally prepared to meet needs of both Venture Capitalists and Angel investors. In your Business Plan, you should be able to see your own project through investor's eye. Your plan must be able to answer concerns of an investor.

The investors, both VCs and angels, are risking their hard earned capital by investing in your venture in hope of long term returns that are worth many times their original investment. An Investor Ready Business Plan demonstrates to investors that you are an expert in your industry and that you have a clear mission. An entrepreneur addresses these needs by prepareing a comprehensive and detailed view of their business objectives and goals. Some important sections that address different concerns of investors are below:   

Management

Investors invest in management - not just ideas. It is very important that you express your knowledge, passion and dedication to your business as best as you can. The competence of your team along with their experience levels and their commitment levels are also factors that investors look into before making their investment decisions.     

Customers

It is important to communicate to investors that you understand needs and requirements of your customers and to articulate your marketing strategy within your business plan.

Product/Service Description

Every new business owner knows that a business plan is critical – it is drilled into them by potential investors and every banking officer they meet. So why is something that is so important to launch of a new venture so difficult to write? Good question! In this article I will try to address when you should go out and hire a business plan writer versus taking on task yourself. First time entrepreneurs often cringe when sitting down to write their business plan. Some spend 6 months agonizing over each period and comma, and even worse others spend 6 months procrastinating and do nothing. So lets break it down and see where / when a business planning company should be brought in

Who will read your business plan and why?

First you need to really understand purpose of your business plan and who your audience (reader) will be. This is an important point as a business plan being written for a $100,000 loan is VERY different than a document needed for a $10 million round of venture capital! Since this article is focused on first-time small business owners, I will focus on preparing business plans raising less then $1 million in capital. For this “startup” or “seed” business plan 30-35 pages are perfect. You are not expected to deliver a thick book (and no one will read it anyway!). Once you have this down, you can honestly assess which sections you are qualified / comfortable writing and which may need consulting help

Here is what you should write on your own

It is important for you to write a basic draft / outline of your business plan. Without this direction you are probably asking too much of your consultant. Once you have your thoughts organized on paper you can see what you are comfortable completing. Here are a few suggestions:

Executive Summary: Draft opening of your business plan – then hire a pro to come in and re-write it. Your executive summary will be read first and first impressions are critical!

Marketing: You need to write your own definition of your target customer / audience. For market research on industry growth and fancy charts go ahead and hire a consultant.

Competitive Analysis: You should put together first draft of this section, as it is almost as important to understand your competitors, as it is your customers. If you find a consultant that is an expert in your field, then you can work together and add to your initial list.