Any growing company needs a business plan if it is to be successful. When it contains all the essential elements, a business plan is literally a road map for the company to follow.
A good business presentation is also essential in communicating the value proposition of the company to advisers, employees, customers, partners and investors. The business plan is the document that the majority of investors will pay the most attention to, and an effective business plan can play a large role in acquiring capital for the company.
A good business plan will normally comprise of 10 key sections:
1. Executive Summary
2. Company Analysis
3. Industry Analysis
4. Customer Analysis
5. Competitive Analysis
6. Marketing Plan
7. Operating Plan
8. Management Team
9. Financial Plan
10. Appendix
Business Plans: Guide to Success
A business presentation has to establish credibility for the company, and to do so it must avoid making certain mistakes, such as underestimating the competition or overestimating market sizes, and must focus instead on realistic plans for the company's success. These should include:
Define the Relevant Market - a poor business presentation will often fail to define the size of the target market accurately. It will be immediately apparent to investors when the target market is wildly overestimated. A far more effective strategy is to clearly define the relative market - the sales of the company should capture a large % of its niche - which will provide the potential investors with more to go on than simply including generic figures.
Focus on Previous Accomplishments - the track record of the company will be the most accurate indicator of future success. It is important for your business plan to demonstrate the milestones that have been achieved using any previous funds, as well as presenting the achievements of the management team to show how future challenges will be overcome.
Focus on Customer Needs - the relationship between a company and its customers is absolutely critical for investors. The business plan should clearly demonstrate how the needs of customers are met by its products and services, and should include specifics of the target markets which best demonstrate these needs. Showing how the company will penetrate its customers by means of a clear road map is also an important part of the business plan.
Barriers To Entry - it is not enough in today's funding environment to simply claim first-mover advantage, and this is not sufficient grounds to appeal to an investor. Instead, an effective and compelling business plan must prove barriers to entry by demonstrating clear strategies that show how the company will construct barriers around its customers.
Realistic Financial Assumptions - the financial section of the business presentation is often the first section that potential investors will look at, and for this reason a company must refrain from repelling them with unrealistic assumptions and projections. Any plan that highlights unrealistic, inconsistent or badly reasoned penetration, revenues or operating margin will damage the business plan's credibility. Making realistic, accurate projections will be far more effective in demonstrating the credibility and operational maturity of the company.
A good business presentation is also essential in communicating the value proposition of the company to advisers, employees, customers, partners and investors. The business plan is the document that the majority of investors will pay the most attention to, and an effective business plan can play a large role in acquiring capital for the company.
A good business plan will normally comprise of 10 key sections:
1. Executive Summary
2. Company Analysis
3. Industry Analysis
4. Customer Analysis
5. Competitive Analysis
6. Marketing Plan
7. Operating Plan
8. Management Team
9. Financial Plan
10. Appendix
Business Plans: Guide to Success
A business presentation has to establish credibility for the company, and to do so it must avoid making certain mistakes, such as underestimating the competition or overestimating market sizes, and must focus instead on realistic plans for the company's success. These should include:
Define the Relevant Market - a poor business presentation will often fail to define the size of the target market accurately. It will be immediately apparent to investors when the target market is wildly overestimated. A far more effective strategy is to clearly define the relative market - the sales of the company should capture a large % of its niche - which will provide the potential investors with more to go on than simply including generic figures.
Focus on Previous Accomplishments - the track record of the company will be the most accurate indicator of future success. It is important for your business plan to demonstrate the milestones that have been achieved using any previous funds, as well as presenting the achievements of the management team to show how future challenges will be overcome.
Focus on Customer Needs - the relationship between a company and its customers is absolutely critical for investors. The business plan should clearly demonstrate how the needs of customers are met by its products and services, and should include specifics of the target markets which best demonstrate these needs. Showing how the company will penetrate its customers by means of a clear road map is also an important part of the business plan.
Barriers To Entry - it is not enough in today's funding environment to simply claim first-mover advantage, and this is not sufficient grounds to appeal to an investor. Instead, an effective and compelling business plan must prove barriers to entry by demonstrating clear strategies that show how the company will construct barriers around its customers.
Realistic Financial Assumptions - the financial section of the business presentation is often the first section that potential investors will look at, and for this reason a company must refrain from repelling them with unrealistic assumptions and projections. Any plan that highlights unrealistic, inconsistent or badly reasoned penetration, revenues or operating margin will damage the business plan's credibility. Making realistic, accurate projections will be far more effective in demonstrating the credibility and operational maturity of the company.
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