Perhaps You Should Consider Your Business Plan

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How important is a business plan? Often, when considering our career goals, we don’t realize how important having a blueprint is. Your business plan is your blue print. It is an important indicator of your objectives and desires as well as a great tool for translating your vision to others who may be willing to help fund your dreams. That’s right, INVESTORS.

What aspects of your business plan will most attract investors? We information are they looking for and why is it important? Having answers to these questions can be a great help.

According to lawyer and small business expert, Steve Strauss, you should “wait on revealing the cost”. Steve Strauss believes that the strongest part of your plan should be succinct writing, great supporting information, and clearly defined benefits your business will bring. Strauss surmises that once you dazzle potential investors with this information then you should reveal the financial aspects. Strauss takes the view that this compels investors to want to buy into the business.

Dave Lavinsky, business planning and venture capital expert and founder of Growthink, makes a point of stating the hard truth about business plans and that venture capitalist fund about 1% of the business plans that they are presented. Further, he states that angel investors only fund about 11% of the business plans they see. This can be a daunting scenario. However, he also states that successful business plans have 5 things in common:

1.    The Right Value Proposition

2.    The Right Marketing and Sales Strategy

3.    The Right Business Model

4.    Action Plans Developed From Reverse Engineering Success

5.    Are Communicated Brilliantly

Again, note that the financial aspects of your business are not at the forefront of this list. The bottom line is that investors really want to know what need your business will fill and how you plan to fill it better than anyone else. If your business plan covers this in a creative and compelling way, you can likely attract the people who are willing to see it through with you.

Steve Strauss is a USAToday.com columnist, author, and small business advisor whose website, TheSelfEmployed.com, offers articles about all manners of business ownership from franchising to home-based business.

Dave Lavinsky is the co-founder of Growthink, a resource for entrepreneurs that offers advise on business plans and finding capital. Lavinsky is described on the site as a “serial entrepreneur”.