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Writing a Winning Business Plan
When approaching an angel investor to look for money to start your own business, you need to understand that the investor likely has hundreds of business plans to screen each and every month. This means that unless you show the investor something very impressive, your business plan is going to end up with the large majority of the plans ? in the garbage! The key to writing a winning business plan is knowing what your investor is looking for. Your investor is looking to make money off of your business. It is an investment, and the bottom line is how much he could stand to make of the whole deal.
When you start planning your business plan, remember to write it for an investor to read, not for a business owner. After all, the business plan is designed for your angel investor, not for you. Show your investor how you will make a profit, and therefore how they will make a profit. If you cannot clearly show them the money, investors will run the other way.
The first area of the business plan to address is your ability to manage the business. Whether you are managing it on your own, or have assembled a team of managers, you need to show who has the responsibility to manage your business. The people who are in the management role need to have experience in the area that your business is located. Make sure you have strong management in place, and show that clearly in your business plan.
Next, address the market that your product or service is going to reach. You need to show that you have knowledge of that market in your business plan. Your potential angel investor needs to know that you have a product that meets a need in the market. Be sure to include market analysis reports that show the need for your particular product. While you do not want to get technical in the executive summary, you do want to show in the meat of the proposal that you there is a need for your business, and that there are reports to back up this claim.
Finally, be sure that you prove in your business plan that you know your product or service inside and out. While you may have a clear picture of your product in your mind, your business angel may not. Clearly show your product in your business plan. Do not be afraid to include pictures and diagrams to make it clear what your product is and how it works. Also, include upgrades your product could take, so that the investor can see the potential for future income.
If your business plan is strong in these three areas and looks professionally made, then you are ready to send it to the desk of an angel investor. Remember, your plan may be the only chance you have to make an impression on the investor. Make it a good one.
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