Get the latest Venture Capital & Angel investors news and info Join Our Mailing List:

Your Name: 

Your Email:  

*By submitting your name & email you agree to receive for FREE our scholarships & offers Newsletters. You agree also with the storage and handling of your data by this website and 3rd party email services.
You may unsubscribe if you wish. And you can delete your email and name at any time by emailing us to the email on the bottom of this page.

Follow us on
  • How to Create a Persuasive Business Plan

    August 17th, 2010 No comments

    A business plan is based not on an idea, but on hard data. This may come as a slap in the face to some entrepreneurs, who are known for their ideas and creativity. Yet as jacks-of-all-trades, entrepreneurs are also adept at finding the necessary research to support their ideas and prove to investors that their ideas are worth banking on.

    Three major elements make up the foundation on which your entire business plan is built.

    1. Market Research

    The first thing an investor always wants to know about a company is its growth potential in the marketplace. Therefore your market research must show that there is a large and growing market for your product or service. The research needs to prove that customers not only want but need what your company has to offer.

    Use reports from independent industry research institutions; reports from governmental, educational, and trade organizations; books, articles, and blog posts from reputable thought leaders in your sector; and other secondary research. Additionally, tap into primary research such as interviews and customer surveys.

    2. Qualified Management Team

    Investors tend to bet on the jockey, not the horse. In other words, the qualifications of the management team often matter more than the company itself.

    Delve deep into the past accomplishments of your management team. Be able to explain in full detail all the directly relevant experience your team has in building successful companies. Additionally, use indirect evidence of their ability to help run your company – such as similar positions even if in disparate industries; related education, awards, recognitions; and so on.

    3. Credible Exit Strategy

    An exit strategy is an expected liquidation event such as IPO (initial public stock offering) or buyout/merger with another company.

    Explaining your exit strategy can be a dicey proposition, as investors are wary of entrepreneurs that claim a guaranteed liquidity event. Avoid making yourself look naïve by detailing how similar companies have achieved liquidation events using strategies similar to yours. Look into the history of such case studies and include that data in your business plan.

    Also, research and profile companies that have a history of buying companies like yours. Prove that there is a solid reason for those companies to buy you or merge with you rather than produce a facsimile of your company in-house.

Leave a reply

Please leave these two fields as-is:

Protected by Invisible Defender. Showed 403 to 266,559 bad guys.


Latest Headlines:

Friday August 31, 2012
Zscaler Secures $38 Million Investment Round

Wednesday November 30, 2011
Health Care Solutions companies Infinity Pharmaceutics, NanoVobronix and Selventa raise funds.

Monday November 21, 2011
Panda Power opens $420 Million Fund for Solar and Natural Gas Projects

Thursday November 17, 2011
Better Place raises $200 Million for Electric Cars in the Series C of Funding

Wednesday November 16, 2011
Accel Partners raise $100 Million Big Data Fund to Invest in Hadoop, NoSQL and other Companies

Tuesday November 15, 2011
Skimlinks raises $4.5 Million to help Bloggers Increase their Gains

Monday November 14, 2011
Standing Cloud raises $3 Million to help New Cloud Providers grow Faster

Thursday November 10, 2011
Zillow acquires Diverse Solutions for $7.8 to help Real Estate Agents increase their Visibility


By using this website you agree with our cookie policy