Plan your way to profitability!
According to analytical data, the average median investor will peruse up to 80 investment opportunities before choosing one. That’s a lot of time and effort on the part of the would-be investor and so you want your own business to rise above the others and get noticed.
And the best way to do that is by organizing an effective and attractive business plan.
Creating a business plan shows investors that you’re serious about business and dedicated to unlocking that business’s potential, not to mention maximizing the chances of profitable returns. For this article, we will outline four strategies to help you attract investors by creating a business plan that works.
1. Expectations
Investing in a business is not for the sake of charity, investors want and expect bountiful financial returns and rightly so. Scrutiny of a business they are thinking of investing in must therefore include a clear and viable road to profitability. Your business plan must show a detailed and realistic outlay of not only financial success but also sustainability.
You can present cold, hard data to an investor, but at the end of the day it’s just numbers. Studies show that most investors are attracted by a compelling narrative more than anything… the who-what-why-how element of your business plan is what will snag the investor, not a spreadsheet.
Managing an investor’s expectations is a fine balancing act between hard data and a compelling narrative, with many business plans leaning too far in one direction or the other. Presenting a viable financial plan but intertwined with a winning vision for growth is your first step to securing investment.
2. Risk
Even though you want to project confidence and positivity to potential investors, there is nonetheless an element of realism that must be included in a business plan. Investors appreciate transparency and honesty so being prepared and acknowledging potential risks in an investment portfolio is a wise and prudent thing to address.
If investors see you as someone who is capable of traversing shifting market trends and adapting when necessary, it boosts confidence in your business plan and tells investors that you’re someone who is proactive in managing and mitigating strategic risk.
A detailed and robust risk mitigation framework is an essential part of any business plan.
3. Showcasing
Dazzling your investor with sound data and a striking narrative is only half the battle. Showcasing your team is also an important factor as any investor will want to know the people behind the plan. Having a detailed profile of the team’s talents, expertise, success stories, and overall dynamic makes for a compelling companion to the business plan’s metrics.
Introducing your team to a potential investor also makes for great human connection, giving a more personalized perspective to that investor and shoring up confidence in your vision.
4. Customization
Investors are like anyone else, they have their own individual personalities, character traits, quirks, and processes. When meeting an investor and outlining your overall business plan, it’s good to do research on that investor in advance and, if possible, customize your plan to align with their own expectations
Adapting your plan so that it not only maximizes potential financial opportunity but also aligns in an attractive manner with the investor’s vision can significantly further your chances in securing that financial lifeline.
Customizing your approach also shows the investor that you understand and appreciate their concerns and in doing so, you project an air of both reliability and relatability.
Attracting investors can be a challenge, especially in the current economic climate, but if you succeed, your business will be on its way to success. Good luck!
