What is an investment worthy business plan?

At some time in the lifecycle of your business you will find that you need additional working capital. Many business owners will automatically look to finding more sources of debt financing in order to get the money they need. However, if you are not able to take on more debt financing or just don't want to there are other ways to get the money that you need. An angel investor can help you grow your business and take it in the right direction. However, you will need to be able to show that your business is investment worthy through the business plan that you write.

Your business plan will be the most important tool that you have in order to attract potential investors. Any potential investor will need to be able to see that you have a plan to grow and develop your business. This means that your business plan will need to be able to show that. If you cannot write a business plan that will attract the attention of investors or lenders it is nearly impossible that your business will be able to grow. Here is what you need to know to answer the question- What is an investment worthy business plan?
- Know who you are writing for-One of the key components that will determine whether or not business plan is investor worthy is whether or not you know who you are writing it for. You need to be familiar with the type of investor that you are wanting to attract and know what they will be looking for. Taking some time to really consider what your investor will be looking for and how you can position your business as the answer will help you write the most effective business plan. This will also help you to be able to address whatever questions and concerns your investor may have and help show your business in the best potential light for investing.
- Address the concerns of your potential lender-It is important that you take the time to let your potential lender know exactly what products and/or services that you sell and why your target market will need or want them. Your potential investor will want to know that you have the profit potential that they will be looking for in an investment. In other words they will want to know why they should risk their money with you. Your business plan will need to show them that your business has the potential to provide the type of return they are looking for.
- Explain your target market and how you will attract them-It will also be crucial that your business plans show that you know who your target market is and how you will attract them. Do not assume that everyone will want to buy your product or service. There will be a certain segment of the population who will be most likely to buy from you. These are the people that you need to find and devise the best and most effective way(s) to market to them. Your investor will want to see on your business how you plan to do this.
- Describe your management experience and that of anyone who works for you-Many business owners make the mistake of leaving out this section from their business plan. Keep in mind that your investor knows that he or she is not really investing in the product or service that your business offers but rather in the people that run the business. This makes it crucial that you use your business plan to show that you and anyone who works in management in your business has the experience and expertise to make your business successful.