There is a lot of chaos around business plans and it’s content. Start-ups are usually confused about its structuring. “How to write a Business Plan?” is a query we receive almost daily. Here are 5 things to know if you have started your journey of raising funds for your start-up.
- What is a Business Plan?
A Business Plan is a communication tool. It is drafted to inform the investor about you and your business. It describes the future of the company. It also reflects, the approach of the founder. It describes the goals of the company and a plan on how these goals are to be achieved.
- It is okay to highlight the challenges of the business:
No business is free from hurdles. Every investor is well aware of this. Founders usually choose to not specify the challenges a company is likely to face. This makes the investor believe that, you are either lacking market research or are too optimistic about the business and not prepared for the challenges.
- Do not outsource the content creation of your Business Plan:
No-one can ever get an insight about your business, the way you would. Every word used in your plan is an extension of what you think and believe about your company. It is okay to outsource the creatives, however, never the content. If you can’t explain your business, you can’t run it.
- Every Business Plan is unique:
Every business is unique, so has to be the business plan. The standard parameters can be used as reference points, however, it may not be entirely true for your business. Assess the scope, framework, challenges, market, costs, competition for your business and then convey the most important aspects of the same to your investors.
- Do not use a manipulative language:
Most of the investors may know about your industry and have done fair research before meeting you. Hence, it is always good to be candid about a situation in your business. Investors not only invest in the company, they invest in the founders. They will always choose an honest founder, over a manipulative one.