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Investors aren’t
just satisfied with a firm of moderate profit potential. Rather
they are more interested in firms that would not only be profitable
but also will rapidly develop into large business, returning the
investors with a large multiple of their investment. If the business
is either not well structured or well presented investors my lose
confidence of you running the business successfully.
Investor’s
focal point
While
seeking equity form outside investors or venture capitalists you
could amplify the chances of your success by getting someone with
a recognizable committed to your management team. In case you
cannot manage to do this, you could at least get one or two persons
on your board of directors with whom the potential investors may
be familiar.
On the other
hand you could include exhibits such as media clippings, articles
from trade publications, a brief description about members of
your management team, in your plan.
Elements of your Business Plan Below is an outline for a business
plan. Use this model as a guide when developing the business plan
for your business. Excerpted from material by the U.S. Small Business
Administration.
Elements of your Business Plan
Below is an outline for a business plan. Use this model as a guide
when developing the business plan for your business. Excerpted
from material by the U.S. Small Business Administration.
Elements of a Business Plan
1. Cover sheet
2. Statement of purpose
3. Table of contents
| I. The
Business |
-
Description of business
-
Marketing
- Competition
- Operating
procedures
- Personnel
- Business
insurance
- Financial
data
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II. Financial Data |
-
Loan applications
- Capital
equipment and supply list
- Balance
sheet
- Breakeven
analysis
- Pro-forma
income projections (profit & loss statements)
- Three-year
summary
- Detail
by month, first year
- Detail
by quarters, second and third years
- Assumptions
upon which projections were based
- Pro-forma
cash flow
- Follow
guidelines for letter
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III. Supporting Documents |
- Tax
returns of principals for last three years
- Personal
financial statement (all banks have these forms)
- In
the case of a franchised business, a copy of franchise
contract and all supporting documents provided by the
franchisor
- Copy
of proposed lease or purchase agreement for building space
- Copy
of licenses and other legal documents
- Copy
of resumes of all principals
- Copies
of letters of intent from suppliers, etc.
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