subject: Business Plan: Most Important Things That Investors Consider: [print this page] A professional and well-written business plan is the foundation towards the growth and success of a business. It is an essential document for companies seeking for funds. If a business plan is professionally prepared than it must meet the needs and requirements of both Venture Capitalist and Angel Investors. A good and high-quality business plan is one that answers all investors questions.
Following are some important business plan sections that address different concerns of the investors:
THAT THE COMPANY HAS FOCUS:
The most important section of any business plan is its executive summary that highlights all sections of a business plan. Many investors decide just after reading an executive summary whether to grant loan to your company or not. Make sure to clearly and smartly define business in this 2 or 3 pages section.
THAT THE MARKET HAS POTENTIAL:
The interest of many equity investors is the growth potential of the market in which you are going to start your business. Research how big your existing market is for the products and services you are going to offer.
THAT THE BUSINESS HAS SPECIFIC SOLUTIONS FOR THE MARKET:
Make sure that the products and services your company is offering is uniqueness from the products and services of your competitors in you want to gain defensible position in the market and industry. Defensibility of your market position is an important factor that investors and funding sources consider.
THAT CUSTOMERS SHOW A READINESS & WILLINGNESS TO BUY YOUR PRODUCT:
The success of your company is entirely depends on the demand of the products or services your company is offering. Both venture capitalist and angel investors wont take your business plan seriously if you dont have customers ready and willing to buy your product.
THAT THE COMPANYS DYNAMICS ARE STRONG:
The main dynamics of a company that makes its value strong are: a sellable product or service and a management team. Investor invests in a company to get higher return and if your management team consists of smart people than you can control expenses and make a profit.
