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 Prove Your Case to Investors [VIDEO]

    August 17th, 2010 1 comment

    Hey, have you seen this?

    Watch this free presentation to discover how to finish your business plan in 8 hours (or less)!

    Your market potential is the number of customers whom you can realistically capture. Give investors a portrait of this number and how you arrived at it.

    There are two ways to prove market size and growth rates in your business plan. The knowledge acquired from doing this will affect many sections of your business plan.

    1. Peeling Back the Onion

    Approximate the size of your target market through a process of elimination. Determine the total relevant market size. Then begin eliminating the sectors and customer segments you will not target.

    For example, if your company produces a $600 espresso machine, your relevant market size is everyone who serves or drinks coffee. Peel back customer segments from general to specific. Use hard market research. Peel off the low-income segment right away. Then remove segments that have not bought a new household appliance in five years. Then get rid of those that only drink at coffee shops.

    In the end, you are left with a profile of your target market. These facts go on your Customer Analysis.

    2. Assessing Market Factors

    Take a look at all the factors that will effect your target market:

    Competition

    How many of your customers can your eventual competition take away from you? This will reduce your total market share, but do not be shy about including this information in your Competitive Analysis. Investors are looking for realistic numbers.

    Customers

    Using demographics and psychographics, describe your customer degments. What are their income levels? Do they live in rural areas, or metro areas? Where are they, geographically? If you are targeting businesses, how many employees do those business have? This goes into your Customer Analysis.

    Market Trends

    What government regulations will affect your market share? What changes are taking place in terms of market shifts and materials pricing?

    Case Studies

    Describe cases in which other companies have found success in doing something similar to what your company does. This information will show up in your Competitive Analysis and Industry Analysis.

    Providing a clear picture of your true market potential gives investors confidence in your management team; and helps you to focus your own marketing efforts in your Marketing Plan.

    Still haven’t finished your business plan?

    Watch this free presentation to discover how to finish your business plan in 8 hours (or less)!

 

1 responses to “How to Prove Your Case to Investors [VIDEO]” RSS icon

  • I think market surveys and case studies are so important because they mean real data and really have something to prove. They’re also good for basing projections on them.


Leave a reply

Please leave these two fields as-is:

Protected by Invisible Defender. Showed 403 to 252,782 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