How to write an investor ready business plan

If you are a small business owner, you may want to have an investor ready business plan. This way when an opportunity to gain investors, arises, you can have the necessary documentation to show that your small business is a solid and potentially great investment. Investors will be looking at that potential using your business plan.

This may leave some small business owners asking: What is an investor ready business plan? An investor ready business plan is defined as a document that has been professionally prepared, to meet the needs of both Venture Capitalists and Angel investors. Keep in mind, that in your business plan, you should be able to see your own company and its potential, through the investor's eye. In addition your business plan must be able to answer the concerns of any investor.

Any investor will be looking at your company in the hope of long term returns that are worth many times their original investment, before they are willing to risk their hard earned capital. An Investor Ready Business Plan will demonstrate to investors, that you are an expert in your industry, and that you have a clear mission. A small business owner will address these needs, by preparing a comprehensive and detailed view, of their business objectives and goals. There are certain important business plan sections that address different concerns of the investors. These areas are-

• The management of the company-Investors do not just invest in ideas, they invest in the people with those ideas. It is crucial that you express you and your management teams: knowledge, passion, and dedication to your business, as best as you can. You should understand that the competence of your team, along with their experience levels, and their commitment levels, are also factors that investors will look into, before making their investment decisions.


• The customers you already have and the potential you have to get more-You will need to show potential investors that you understand the needs and requirements, of your customers. You should also be able to articulate your marketing strategy, within your business plan. You need to show that you are capable of growing your customer basis, by providing a solution to their needs, with your product or service.


• The products and/or services that your company provides-You will need to offer a complete description of the product or the services, offered by you in detail. Another essential element of the description, is facts about the overall market for your product or service, along with the details of your customer base is. The investors need to know the reach and the kind of customers your product or service is catering to, and how your product or service fill their needs.


• The marketing plan for your product or services-This is one of the most important sections of your business plan. This section should clearly outline your sustainable competitive advantage, to your investors. This needs to function as a way to assure them, why you will succeed where others have failed. This section is also where you should include:a definitive description of your customers, market size, demographics, characteristics, growth prospects, trends and sales potential for each product or service category. It is in this section that where the pricing strategies are outlined, and how they can directly influence the growth potential of each product or service. You should also include:the future growth, market share, and trend influences, that presently and in the future, could influence your company and is growth.


• The barriers to entry, from your competition-You will need to inform your investors, how you will you prevent your competitors, from taking away your customers. Keep in mind that any investor will need to feel comfortable about the soundness of your strategy, before they invest in your venture.