Every business has its own specific requirements. The business plan you make for internal use usually looks significantly different from the plan which you will submit to those who are willing to make an investment in your venture. The plan you make for generating profitable interest among the investors will be altogether different, primarily because it needs to be tailor-made as per your investment requirement before it is sent to the potential investors for consideration. The tailor-made business plan sent to investors is termed as ‘venture capital investment ready’ business plan.
In true sense, a business plan is the foundation stone of the growth of your business and also takes it on the path of the establishment. If you wish to realize your business goals, then a good business plan forms an essential component of it. A good plan to make your business venture capital investment ready will give out a complete idea to the individuals or companies offering venture capitalist investment options as well as angel investors to make a decision on whether to make investment in your business venture or not. For designing a fruitful plan to make your business venture capital investment ready and to attract some good venture capital investment, it is imperative to create a customized plan keeping in mind the profile and point of view of the potential investor and address their venture capital investment related concerns accordingly. You should be able to project your business plan through the eyes of your potential investor who would be pumping in money in form of venture capital investment and also answer all his queries with confidence through the business venture plan.
The investors offering venture capital investment as well as angel funding will invest their hard earned money in your business venture only if they see long term monetary gains. The only way to make them believe that your business plan is worthy of their venture capital investment is to project commendable growth figures of your business in the business plan with complete surety of investment returns. Most of the investors offering venture capital investment prefer to consider business plans which are well executed along with clear picture of the mission of your business organization in the long run. While preparing the business plan, your primary aim as an entrepreneur should closely focus on your future objectives and high rate of growth for your business as well as your investors’ venture capital investment. Your business plan should contain a detailed and comprehensive analysis of your business policies that offer utmost satisfaction to the potential investors granting venture capital investment.
There are certain sections, which require special attention in your plan for making your business venture capital investment ready. Giving attention to these sections will help you address the needs of your future investors offering venture capital investment. Some of those sections are mentioned below:
Management and Its Working Principles
When you present your business plan to the venture capitalist for venture capital investment consideration, the first thing they will look out for is the size of your management and its working principles. It is likely that they do not even consider your ideas if they are not satisfied with the management and its policies mentioned in the plan, specifically designed for making your business venture capital investment ready. Ensure to give out complete knowledge about the management and its policies while framing the business plan. Do not forget to mention about the time, size, experience, qualification and information of their high competence levels and highlight their previous achievements in the plan. All these aspects leave a strong impact on investors offering venture capital investment and they are likely to study these factors gravely before they decide on any investment option.
Information about Your Offerings
Ensure to provide a descriptive analysis of your products and services in your business plan, so that your potential investors for venture capital investment can understand what exactly you are giving to the people with your business venture. Also give information about your vendors and other sources through which you will manufacture your products or offer your services to the customers. These things will further strengthen the plan you design to make your business venture capital investment ready.
Target Customers and Their Requirements
Try to communicate your target audience to the investors, so that they can an idea about the size of your customer base. Also, exhibit details about the market you are seeking to capture and how your offerings can benefit millions of customers. Potential investors offering venture capital investment should get a fair insight that you have done ample market research before formulating the business plan and you have knowledge about the needs of your customers. Your business plan should adequately reflect your efforts to make the business venture capital ready and convey the clear message that your business has the possibility to achieve the needs of customers successfully.
Marketing Strategy
The marketing strategy section of your business plan will summarize how your business plan is sustainable, competitive, growth-oriented and beneficial for your investors’ perpetual growth. You have to assure them about the success of your business plan by citing examples about how others have failed to make big in the field you are seeking to venture in. Major factors you should include in the market strategy section of your business plan include information about customer base, characteristics of your business, market size, future growth prospects, demographics of the market you wish to capture, sales potential of your company and brief research about ongoing market trends. Defining your basic pricing strategy and description about the influence of your pricing structure in the perpetual growth of your business will work wonders in your favor in terms of securing the venture capital investment. You can also include your dream market share and projected rate of future growth in your marketing strategy for marking an impression on investors.
Barriers Hampering Market Entry
This doesn’t refer to information on why you are not able to enter the market; instead this section outlines how you can keep competition in the market at bay while maintaining the sustained level of growth and market share in your business. This will give a feel good factor to the potential investors while making them comfortable at the same time about the reliability of your strategically designed business plan before they make any type of venture capital investment in your business venture.
These simple tips can definitely help in making your business venture capital investment ready and also give you an added advantage over the tough competition of your target market.