My job is to build comprehensive business plans for our customers that are marketable to investors and banks so that our customers can secure the financing they are seeking. We assist in building marketing strategies, sales strategies, and doing the proper due diligence necessary to understand the market a customer is entering. Although we assist with the business planning and strategy aspect of a company, I think the most important part of our job is turning the plan into a marketable document that our customers can take with confidence to an investor.
Many business owners and startup companies that I speak with underestimate the power of a well written and well composed business plan when seeking financing. Put yourself in the investor’s shoes for a moment. Imagine I hand you a document that outlines my entire business strategy in 4 pages. The document has grammatical errors and is in black and white. What impression is that giving you as a potential investor? First, the length of the document is discouraging. While every good business plan needs a solid 1-2 page Executive Summary that instantly attracts the attention, you can’t outline the entire business strategy in a couple of pages. A business plan needs to include all of the major strategies of the business so an investor can understand my thought process and where I plan to take the company in the next 3-5 years. Second, the appearance of the document is unprofessional. Having grammatical errors shows the lack of time and effort that went into developing the plan.
Let me provide you with a few tips that can help your business plan sell itself:
1.) Executive Summary – A clear, concise Executive Summary will go a long way in selling your business plan. Key information you want to have present includes: Industry Overview, Product Details, Target Market, Financial Information, and your Management Team
2.) Formatting – Take the time to add “flare” to your business plan. Investors are used to seeing plain business plans, so make yours stand out. Try using call-out boxes for important information. Use a color logo on the main page and in the header of each page. Incorporate charts and graphs that are relevant and can add value to the topic you are discussing. Catching an investor’s eye with your use of color and design will help your plan stand out from the rest.
3.) Due Diligence – Show your potential investor that you have done your due diligence. They want to make sure you understand the industry, your target market, and how you are going to provide them with a return on their investment. Use facts that can be verified by credible sources, and make sure you are complete in your analysis. Be complete, but don’t add unnecessary information just to make the plan longer.
Josh Eich is a Managing Partner with Einstein Enterprises, LLC, a company that specializes in writing business plans for small businesses and startup companies looking to secure financing. For more information, visit the firm’s website at www.einstein-enterprises.com, call (877) 608-0785, or email Josh directly at JoshE@einstein-enterprises.com.
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