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How to write a business plan that attracts investors

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One of the most important steps in attracting potential investors is having the right business plan. Anyone who is considering investing in your business will want to see that you have a plan, on how you can grow and develop your business. Your business plan, is an essential tool, if you are seeking financing, so your business plan, needs to be able to attract potential investors. If you are unable to write an investor ready business plan, it is unlikely that you will secure the financing you are looking for. Here is what you need to know about how to write a business plan that attracts investors-

It is important to know who you are writing for. Whether you are writing a business to attract the attention and the money of either Venture Capitalists or Angel investors, you should be familiar with each type of investor and what they are looking for. One of the best ways to do that is to step back and see your business, through your potential investor's eyes. Then you can clearly see if your business plan will address those concerns and secure you the financing.

Once you can determine what your potential investor is looking for, you can begin to prepare a business plan that will address their concerns. It is important to keep in mind that any investor is risking their hard earned money with you, in hopes of getting a substantial return. Your business plan will need to show them that this is possible. You also want to inspire confidence on the part of your investors, so your business plan will need to show potential investors that you are the expert in your field and you have a clear idea of where to take your business. This can best be done by having a comprehensive and detailed business plan. There are also certain areas that should be highly detailed within your business plan. These areas are-
- Target market-Your potential investors are going to want to see that you have a clear idea of who is going to buy your products or services. Effective market research is crucial so that you can clearly identify who you will be marketing to. Along with an identification of your customer's demographics you will need to be able to clearly spell out your marketing strategy and how you will be successful with it.
- Management-Experienced investors know that they are not really putting their money into the products or services, your business produces, but rather the people who run the company. Because of this you will need to make sure that you have clearly expressed your knowledge and experience, in the market industry. Your potential investors will need to know that you have the expertise to run this business. In addition, if you have other people working with you in management roles, you will need to include their experience as well.
- Description of products and services-Your potential investors will also want to see a complete description of the product or the services that will be offered by your business. This will need to be a detailed description that shows you have completed the research and development phase. It is crucial that you are able to show that there is a direct match between your product or service, and your customer base. If you cannot show that you have the product or service that your customers want, it is unlikely that you will get the investment money.
- Competition-Every business has competition. Potential investors will want to see that you have researched your competition and know how you will claim your market share. To simply assume that you don't have competition, or that they are not threat to your business, will probably insure that a potential investor will pass on your business plan.


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