You're selling what?
You know what you sell. But is it clearly and concisely described in your business plan? Too many business plan writers make one common mistake. They wrongly think that reader is as familiar with their business as they are. Due to this they receive quick and final "no" from lenders and investors. Instead of this make sure to define and describe your product for someone who knows nothing about your industry, this will give you an independent point of view. Be sure to include not only the features of your offering, but also it’s the benefits. Let the reader know what need it satisfies, why it's better, faster, or cheaper or how it can improve their life.
"I sell to everyone!"
Do you? More than likely, you sell to a particular group with the need and desire to purchase your product or service. Understanding your target market is very important because it can put the difference between success and failure. It allows you to identify the benefits which are important to your clients, enables you to focus your marketing efforts to reach the right audience, and forces you to determine the most cost effective channel to get your product in the hands of paying customers. Define your customer in as much detail as possible, including demographic traits as well as more personal items such as lifestyle and personality types.
Your Competitors Know You Exist.
A business plan which lacks comprehensive competitive analysis is doomed to the failure. If you don’t want this fate for your business, a scrupulous analysis of your competition should be included in your business plan. Experienced capital sources know that competition exists, but they also know that competitive forces can affect very positively on a company's attitude and performance. Be sure your business plan identifies who your competitors are, what they sell, what market share they hold and their strengths and weaknesses.
Even Batman Had Robin
No one ever said that running a company was easy, and with the lack of hours in a day, a well rounded TEAM of people is often decisive to the success of a company. Most capital sources view one-person operations as limited in terms of time, experience and core business skills necessary to launch and grow a serious business. They also expect a team of professionals that are highly proficient in each business function (marketing, sales, operations, finance, manufacturing, engineering, etc.). Once you have assembled your team, be sure to provide your reader a detailed description of the background and job responsibility for each, along with a discussion of your board of directors, board of advisors and key consultants.
An Exit Strategy - Without An Exit, Or a Strategy
A business plan is an excellent tool to plan a business or to raise capital. However, when seeking capital don't forget that an investor's commitment hinges upon their ability to regain their initial investment and a healthy profit. The lack of a solid and realistic exit strategy demonstrating how investors will achieve this goal can immediately turn off many sources of capital.
When deciding upon an exit strategy, be sure to take into account your particular industry, business life-cycle, competitive environment, and management needs. It's also important to take into consideration your personal and financial objectives, and how they relate to the future of your business. Don’t forget that an exit strategy must meet the needs of the person who will ultimately write you a check.
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