Entrepreneurship business plan tips to attract investors

Jun 04, 2015The Editorial Staff

All businesses looking for funding must come up with a great entrepreneurship business plan that can attract investors.

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investors listening to a business plan briefing

How do you write a promising entrepreneurship business plan that can attract funding from investors? Entrepreneurs write business plans in formal documentation that brief business goals, explain why the goals are attainable, and describe the plans to reach the goals.

An aspiring entrepreneur will need to prepare a business plan when he is ready to set off business objectives, help his team understand what they need to work for and when he needs help with funding.

Even an established organization will need to prepare an entrepreneurship business plan every time it needs to attract investments. It is also good to have a business plan when it needs to hire new employees, defining new objectives for the managers, doing valuation of the business, developing new business alliances and expanding or selling the business.

The point is—you’ll have to work hard to create business plans that can meet the defined objectives of your business and be able to attract necessary funding. Below are some essential tips you will find useful in crafting your business plan.

Know the business potential before creating the business plan

So, you want investors to fund your business. Have you assessed your business potentials? You yourself need to be convinced of the possibilities before you approach the investors and try to impress them.

First, write some of these questions to come up with an impressive business outline:

What initial investments will your business require?
How are you going to use the money?
When will the business make profits?
When should the venture capitalists, or investors, expect return on their funding?
What are the projected profits for the business over time?
What if the business fails?
What are the backup plans?
What is a safe exit plan?

The better you explain these aspects in the business plan, the higher will be the chances that you will receive funds as much as you want.

Format for writing entrepreneurship business plan

Creating a good and clear business plan ensures the best investments from investors.

Create a clear and brief business plan format. An entrepreneurship business plan should ideally start with an Executive Summary. Then expand with Company Description, a section for Market Analysis, Service or Product line, Marketing and Sales plans, Organization and Management specifics, Financial Projections and finish with a request for funding.

In short, the entrepreneurship business plan should be able to tell investors why they should risk their money or make a profit. Try to keep the length of the business plan within 25 pages approximately. It is also important to give special attention to the “executive summary” section.

As bankers and independent investors receive too many business plans for funding, they sometimes go straight to the executive summary section to get an outlook. The executive summary is the first section of a business plan. It should be able to provide a condensed overview of what your business is all about and how you think you’re going to accomplish the goals.

Prove claims made in the business plan

The most important rule for the success of an entrepreneurship business plan is—keep the backups for the claims ready to show to the investors. They need to see how workable your claims or business vision are.

No matter how big your financial projections look like, investors looking for profits on investments will need to see whether achieving those objectives is practical.

The Editorial Staff

The Editorial Staff at The Business Frontal is a team of writers dedicated to bringing seasoned news stories and how-to business articles to our readers and patrons to help maximize their entrepreneurial potentials.