Have you created a business plan but don’t know how to present it to potential investors? Properly communicating your business idea is key to making your venture viable.
The effectiveness of your proposal message will depend on this when it comes to persuading your potential investors.
However, it’s common for entrepreneurs to focus on creating this important document without paying enough attention to their target audience.
Therefore, in the world of entrepreneurship, there are many business plans that are not compelling enough for investors, potential partners, business allies, and other stakeholders.
This article focuses on what a farm mortgage is and who is responsible for reading it to help you create a successful business plan.
Business plan, what is it and what is it for?
A company plan or business plan is a document that analyzes the opportunities for a particular business idea.
It details factors such as economic and growth forecasts. target market; technological feasibility and other fundamental factors of a functional and profitable enterprise;
For example, a business idea might be “open an Italian restaurant.” Intuitively, though, it sounds like a great idea, but its effectiveness can only be validated when creating a business plan.
This is because the business plan requires you to ask yourself which data represent the reality of that virtual restaurant. Are there enough potential diners in the area? What is the production cost of the dishes on your menu? What kind of competition exists in this area?
As you answer these questions, you may be surprised to find that what seemed like a great idea at first turns out not to be such a great business. Therefore, it is important to establish a business plan before investing our money or looking for investors.
The difference between a business plan and a marketing plan
It is important not to confuse concepts. A business plan or business plan is not the same as a marketing plan. Despite being two very different issues, they are often confused, especially among beginning entrepreneurs. Let’s see the difference.
a business plan Define what your value proposition is, your target market, and the competition that already exists in the market. Once this data is captured, a marketing plan is created.
A marketing plan, on the other hand, is the customer acquisition strategy itself. To design it, take what was established in your business plan as a base and develop the types of messages that not only segment the audience you want to reach, but do so.
On the other hand, the business plan’s competitive analysis will guide you, and the marketing plan will define what distinguishes your brand from others.
These are complementary activities. A business plan outlines the company’s overall operations, and a marketing plan uses this information to design a marketing policy for delivering products and services to target markets.
One depends on the other, but should not be confused. The marketing plan should be done after the business plan is made.
What should an ideal and interesting company plan look like for an investor?
The important thing to understand is that the investor’s interest is not yours. I have a business idea that I want to bring to life. They have their own or someone else’s money and want to increase it.
It may sound difficult, but it’s true. Investors are people who want to increase the capital of their own capital or funds they manage, such as pension funds, investment funds and savings banks.
Your job is to let them know how investing in your company will grow their funds.
The ideal business plan for an investor is strongly associated with projected profitability. But be careful. This does not mean making untruthful or exaggerated predictions.
Investors, especially experienced investors, are well aware that the numbers presented are wrong.
Many entrepreneurs believe that putting in big numbers will make their business plans more successful, as they believe that providing real data will discourage investors.
But this is probably the worst mistake you can make in this area. Good investors know the growth rate of the market and are encouraged to invest as soon as they see entrepreneurs giving realistic projections.
Above all, they know they’re dealing with someone who really knows the market, and not someone who doesn’t know what he’s talking about.
Another element of the ideal business plan is how the risks are presented. What kind of emergency plans do you have in place for the unexpected?
Are you prepared to lose a supplier? Do you have a reliable forecast of future prices for raw materials? are you willing to
These are some of the questions on the minds of investors.
The message of the business plan considered by the gift recipient and how to convey it
A business plan is not a document written in stone. It can be modified and adapted, and multiple versions can be produced, depending on the target audience.
Here are some quick tips to help you know which elements you need to strengthen, depending on who you present your plan to.
1. Potential Strategic Partners
Focus on what they can get by partnering with you. more income? new insight? Do you have access to technology that you have but others don’t? You have to convince him that he can get more out of dating you .
2. Risk capital
The main focus should be on return on capital, profit, profit, expected growth, etc.
3. Business Angel
The fundamental difference between angel investors and venture capitalists is that the former tend to know more about the field, while the latter base their investments on profitability rather than confidence in the project itself. .
If you need to introduce yourself to a business angel, show that you are a trusted reference in the field and impress him with your expertise in the area you are working on.
4. Bank
Like venture capitalists, banks want to know about profitability. A good way to present yourself to them is to show your personal balance in order to properly prepare your income forecast.
If your personal finances are doing well, then your company’s finances are presumed to be doing well as well, which creates confidence. That is why having a good personal credit history is very important.
5. State Entities
Countries must be obligated and accountable to taxpayers. Business plans should therefore strengthen the social benefits that the project brings to the community. That is, how the state will repay you for the investment it has made in you.
If you want to focus on raising money for the country, it’s fine to include a section on social responsibility in your business plan.
Basic Keys to Keep in Mind When Communicating Your Business Plan
What matters is the audience. Because of this, you shouldn’t focus on how good your ideas are. It may be the effort you put in and how excited you are to see it working.
In reality, you should focus on your business viability, profitability and growth potential, the benefits you receive for the people you interact with, and the contributions your company makes to society.
Remember that the person who receives your business plan is not there to help you reach your goals, they are there to help you reach their goals. is. Everyone tries to satisfy their own interests. So when a successful collaboration occurs, everyone wins.
Conclusion
A successful business plan considers the needs of the target audience.
A venture attracts investments and partners as long as it anticipates the benefits it will bring to others. So don’t ignore the audience who will listen to you and don’t think only of yourself when planning your business.
An effective presentation is the key to separating your idea from the thousands of business ideas that fail every day. Spend some time crafting a compelling and engaging business plan for everyone.
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Author bio: Jonathan Veers is agricultural mortgageHe can help you find and secure the best farmland mortgage options to advance your farm investment dreams. An expert mortgage broker with over 10 years of industry knowledge As a farmer, he has helped new farmers, existing farmers, and local business owners across the country.
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