Understanding a business, is for some, as difficult as actually formulating a plan. While businesses and concepts can and often will be very unique, a business plan is generally going to be consistent. Regardless of the industry, product or service, a business plan is expected to address five key areas of concern. Understanding what each is will go a long way to understanding how a business plan is created and why they are so integral to business.
The first two keys to a solid business plan are who is going to be in charge, and how will that person lead the company to win market share? The person running a company is the face of the company. They are responsible for the day to day decisions that ultimately result in success or failure. Investors want to know that whoever that is will be capable of the job. Similarly, they will want o understand how that leader will go about carving out a piece of the competition to take control of? If you cannot articulate that, it will be hard to convince investors you can do it.
That isn’t all they want to see in your business plan though. They want to know when they are going to get their investment back, which means you need solid financial projections. They are going to be blunt when asking exactly how much money you need. Don’t be conservative – it reflects a lack of conviction and preparedness. Something always goes wrong requiring extra funds – ask accordingly. Finally they are going to want to know “why your product? “ What makes your idea a winner?
Provide solid answers through your business plan that satisfy each question before they are even asked and you are on the road to success. Skimp and dance around the tough questions and you will be doomed to flailing blindly while your competition grows stronger.