Angel investors and VCs see hundreds of business plans each year and the vast majority end up in the bin. Often that is business concepts are flawed, but sometimes even good ideas end up in the bin, just because the plan setting it out is rubbish.
The key to wowing investors is speaking their language. You must think about all the things they might need to know carefully, then research and analyse it until you are able to address everything clearly, consistently and convincingly. Don’t forget, every word and every figures is there for your angel so don’t let it become a story about your valiant journey to date of bringing your magnificent venture this far.
There are seven essential tasks you need to tackle to write a compelling business plan:
- What is the market demand?
- What does the competition look like?
- What is your sustainable competitive advantage?
- What resources will you need?
- Are your forecasts credible?
- Is your vision laid out clearly?
- Does the opportunity outweigh the risk?
Do not, as so many business plans do, attempt to sweep risk under the carpet or your backer will find you out and walk away. View every statement in your business plan from the perspective of your angel or VC – your passion for the business should shine through, but it should be tempered with openness, realism and sound judgement.
By Vaughan Evans, author of The FT Essential Guide to Writing a Business Plan, published by FT Publishing