Important steps for receiving start-up funding
For many entrepreneurs that have the desire to start up a business, a start-up funding is essential. You will need to present a business plan that clearly shows your ideas and what role you have in mind for yourself. Potential investors will expect a picture that is clear and carefully worked out, to indicate your potential.
Present investors Your Strengths, Weaknesses, Opportunities, and Threats
All businesses have strengths, weaknesses, opportunities and threats, which together form the so called SWOT analysis. Explaining these in detail is vital for a business plan. SWOT analyses are an excellent opportunity to show investors the big picture for your business ideas. The more detailed and precise, the more you will impress them with the thoroughness of your understanding.
No investor will deny facts
Researched facts are essential ingredients of a business plan that no investor can deny. Show that you are aware of every facet of the business and your competitors.
Your investors will want to know:
- Is your business sector growing? Or is it staying the same, or even declining? Investors have a preference for growing industries. But if you have a great idea in a flat industry, that might also work out. However, a declining sector might raise skepticism for start-up funding.
- What is the total sales volume for the industry as a whole? Which competitors own which share, and why? What is your strategy to gain your market share?
- What are the important financial metrics in the industry? What is the net profit and what is the revenue? What are the figures that belong to your competitors?
- Does seasonality affect your business? Will you sell ice cream in the wintertime?
- Do demographics affect your business? How many elderly people, how many immigrants? Are there any impacts from demographics, positive or negative, that you need to take into account?
- Do politics affect your business sector? Will the political climate change due to an election or maybe even a political conflict?
- Do you foresee any significant barriers to entry? Specify them and present how you will prevent/avoid them.
Clarity is key
Your business plan needs to be top notch concerning both clarity and transparency. Write an executive summary that presents potential investors a clear overview. Ensure that your story is logical and carefully planned. Support your written text with graphics for an even better appearance.