Successfully Pitching Your Startup: Pt 2 Business Plan
We’ve recently discussed the dividing line between an idea and a product, next on the list of our Successfully Pitching Your Startup series, we want to bring the importance of business plans to your attention, and why it needs to be an all in type of deal.
When pitching your startup to an investor it is foolish to leave out a business plan with the specific details about your business. You can’t half ass it. Investors want to know what they are investing their money in! Clearly describe the opportunity they will have when choosing to invest in your business. Build their confidence in you with a thorough and thought out plan.
Banks and investors will look to your plan for evidence that your company can succeed.
Business plans range in size, shape and form. They can be anywhere from a few sentences long to 100 pages pages with formal sections, a table of contents and the whole shebang. Many of which contain a business concept, marketplace, strategies, competition analysis, financial information, operations, management, design and development. Even smaller business plans serve a purpose.
The primary goal of a business plan is to define what the business is or what it intends to be over time. Investors are interested in the direction of your business. A plan will help them better understand your deliverables, your purpose, your goals, and what needs to be done for forward movement.
When creating your business plan think about what the purpose behind your company is, who are your potential customers, who are your competitors, how will you run your business. Also, how much it will cost to run your company; including startup expenses, operating expenses, cash flow, and future profitability.
There is a lot of information to consider for not only for the benefit of yourself, but those investing in your future.
Aside from securing funding, business plans are a great way to map the future of your company. It can help you manage your business more effectively by committing your thoughts to paper. We are true believers in writing shit down! You are more likely to achieve something when it is written out. Creating a business plan allows you to understand your business better, plain and simple. By understanding your business and the market, you will be well placed to ensure your long-term success.
Don’t take the plunge without a formal plan. Just as an idea isn’t a product, your mind full of thoughts, optimism and a good, firm hand shake aren’t enough for investors to invest in your venture. The time that you invest in your business plan will pay off many times over. Plan for success.