Keep Funding On Your Mind While Writing Business Plans

You can follow the prescription for writing traditional business plans, but that doesn’t give you a key piece of information. The plan must flow from beginning to end, of course, but it should also keep the type of business funding you plan on pursuing in mind at all times. In other words, each section of the plan should not stand alone but rather clearly be a piece of a big picture. The business description should enhance the executive summary and the funding strategy should incorporate the marketing strategies.

Even more important, the words chosen to portray the business should be consistent, honest and informative, and they should appeal to the funder. This may sound obvious at first glance, but all too often quick business funding plans are written as if the funding plan stands alone and is written without any thought for what might appeal to the type of funder the entrepreneur plans on approaching.

Make Your Business Attractive

For example, if you plan on seeking venture capital then you will not want to claim that you have a business idea that will revolutionize the world. Maybe it will eventually, but investors will see that as merely a waste of words in the form of marketing hype. Chances are the investor won’t even read to the part where you ask for funding. Hype gives a very bad first impression to potential equity partners or angel investors or banks offering business loans.

Plans must be interesting to read and quite business like, but they also need to convey the excitement you feel about the business. That’s certainly not easy to accomplish and especially if you’re not a particularly good writer. That’s just one reason why many entrepreneurs get professional help. The plan must be written from beginning to end with the intent of attracting the type of funding you want. A bank is not going to approve loans for presentations that are more like infomercials than they are business plans.

Watch Out for the Missing Element

As plans are developed, budding entrepreneurs looking for startup funding need to make sure the plan doesn’t use a lot of hyperbole and make claims that are obviously unsubstantiated. If you are looking for venture capital or equity partners, your business plan must appeal to venture capitalists and equity partners. It sounds so obvious and yet it is often the missing element.

In other words, you need to use statements that add polish to your plan but remain professional and always realistic. Angel investors and venture capitalists can recognize hype from a mile away. The business plan can let your personality shine through but it is not the time to be reckless with words.

Working Those Details

There is one other point to keep in mind when preparing business plans. You should never condense your plan because it makes it appear as if you were in a hurry to get it done. A business plan should be thoughtful and include all of the details a business owner would be expected to work through such as marketing plan details or financial projections. Condensed business plans leave out too many details and don’t stand much chance of getting funded.

 

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