How to Write an Investor-Ready Business Plan That Gets Funding

Did you know that companies with a business plan are 2.5 times more likely to get funded?

This is the importance of an investor-ready business plan.

It differs from the basic one by answering the questions an investor might have in mind.

This document not only provides a roadmap for your business but also attracts potential investors.

Creating a solid business plan means opening pathways for multiple opportunities. You need to show the investors where their money is going.

So the better you write it, the higher the chances are of securing funding.

And if you are still wondering how to write a plan that helps in raising capital, continue reading to do it the right way.

What Is An Investor Ready Business Plan?

An investor business plan is a focused piece of documentation that shows your growth potential to the investors.

It is especially designed to convince the venture capitalists and angel investors. This document clearly demonstrates your clear path to profitability and viability.

Unlike the normal plan, this one focuses on

•         The financial future of your business
•         Key reasons your business should be trusted
•         Addressing the specific concerns of investors

 The Impact Of A Business Plan On Investment

An investor-ready business plan works as a reassurance. It tells investors that their hard-earned money is going to bring a greater return in the long run.

Take a look at the table below to know why this document is important for businesses in several ways.

Steps To Create An Investor-Ready Business Plan

According to research, around 70% of venture capitalists refuse to invest in a business without a proper plan!

An investor-ready business plan is your only opportunity to instill confidence in the investors.

It helps them gauge your potential and assess whether your business aligns with their investment goals.

Pro tip: If you still have doubts, there is no need to take the risk and disappoint an investor. Just find someone reliable offering investor business plan services and let them create a plan that impresses the venture capitalists.

If you are trying to do it your own way, it works as well.

Let’s take a look at how you can create a compelling and well-structured business plan to secure the necessary capital.

1.Write An Executive Summary

This is the first section of your document, which provides a brief overview of your company. Make sure to begin with a compelling statement that persuades the investors.

Start with a line that sparks their interest levels and encourages them to read more about your company.

Include the following information in this section,

•         Mission statement
•         Business objectives and concept
•         The products and services of your company
•         Your target market
•         An overview of your financial projections
•         The funding you need and your plan for spending it

2.Give An Overview Of Your Team

This section will be different from a generic business plan. You don’t need to give a basic overview of your company. At first, begin by discussing the

•         Business structure
•         Business model
•         Mission and brand values

Then comes the workforce of your business.

Investors want to see what unique talent your company has.

Your business plan might be the greatest of all, but if your company lacks the right team members, that’s a problem.

This is where investors will sense a gap between your goals and how you will achieve them.

So make sure to,

•         Mention the industry experience of your members
•         Discuss their roles and responsibilities
•         Highlight their achievements and accomplishments

By doing so, you will assure the investors that you have a strong workforce, ready to execute the business plan.

3.Show Your Market Research

The market is the final stop for your products or services. The response you get will ultimately decide the outcomes of an investment decision.

So make sure to show that you have conducted extensive market research.

In this section, you need to go into detail and focus on the following points:

Your market plan will provide a holistic preview of your business. It will contain all the evidence needed to show your unique value and how the market is ready to welcome you.

Pro tip: Make use of graphs and charts to show the market data.

4.Create A Financial Plan

The investors want to see how responsibly you plan on spending the funds. Furthermore, if you are an already established business, they would be interested in viewing the financial performance of your business.

Mention the following financial details in this section,

After discussing these projections, make sure to include your financial statements as well. These are,

•         Balance sheet
•         Cash flow statement
•         Income statement

5.Discuss Your Marketing Plan

Investors might be impressed by your products, financial management, and the strategies you have developed.

But they would still reject your proposal if you fail to tell how you are going to market your products.

The right marketing plan is the core of every successful business. In this section, you need to provide details regarding,

•         The marketing platforms you are going to use
•         Message you want to convey through these platforms
•         Techniques you will use: paid ads, content marketing, influencer marketing
•         Tools to be used e.g, post-scheduling tools, data analysis softwares

After the marketing part, you need to discuss the sales strategy as well.

Discuss the following points,

•         The price you have decided on for your products
•         Where will the products be sources from
•         The production process you have decided
•         How do you plan on shipping them
•         The inventory management strategies

6.Identify Risks And Mitigation Strategies

No business comes without risks. This is where investors want to assess your thinking capabilities.

They want to analyze how well-prepared for navigating these challenges. So make sure to address each risk and the strategies you will implement to prevent them.

The most common ones are,

•         Supply chain risks that could disrupt your operational plan
•         Market risks, such as changing consumer behaviors and purchase patterns
•         Financial risks such as unexpected expenses
•         Technological risks that interrupt your business operations
•         Any regulatory risks, such as major changes in laws

7.Add The Appendices Section

This section will contain all the supplementary information associated with your business.

It will provide a detailed overview and support the investor-ready business plan you have shared above.

Include the following documents in this section,

•         Historical financial record of your company
•         Current market trends
•         Industry reports that discuss your target market
•         Contracts with your suppliers and other legal documents
•         Resumes and certifications of your employees

Consider this section as an extra opportunity to provide a valuable context for your business. Keep this section well-formatted and avoid adding too much information in a single place.

Wrapping Up

An investor-ready business plan is your key to convincing the potential leaders that your business deserves an investment. It is your only opportunity to provide them with the framework and information they need for assessing your business’s potential profitability and risk levels.

Remember, a weak plan might lead to a missed investment opportunity, while a strong one can convince investors that this business really does have a competitive, unique edge to succeed. Follow the steps above to create an impactful plan to secure the financial assets for your company.