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VentureConnect comes back with some useful advice for writing your business plan or improving the one you already have.

First you must prioritize from the very beginning the process of identifying the audience whom you are adressing to. This important decision will establish the guidelines of your business plan. Every investment type has its own pros and cons, depending on the desired timeframe for obtaining the investment, on whether you want to give up a certain amount of management control or on how much risk you are willing to take.

If you are writing a business plan for obtaining a venture capital investment make sure that it contains concise, well-articulated information that proves you have a very good know-how of the market. The plan should also include a realistic return of investment and accentuate the competitive advantages of your business.

Steps to follow:

Be informed and collect information wisely
Once you have decided what type of plan your business needs, you have to inform about the market and even try to collect client’s testimonials in order to present a more accurate information.

Analysis

Once you have collected and organised the information, you then must analyse everything. You should build a competitive profile that also includes potential risks and try to point out some solving strategies briefly.

Financial issues

Once you have identified which indicators best match your business, you may begin to draw a financial planning. It is a known fact that, in order to achieve best results, you should counsel with an accountant. Try to be reasonable in making optimistic projections about the future because investors can hold back and become suspicious if they hear unrealistic numbers.

Formulate a three to five-year budget outlining your income and expenditure forecasts in granular detail. This should also cover cashflow based on you receiving investment too, so an investor can clearly see when you break even, or run out of cash. Be realistic with it and attach this to the business plan.

Executive summary

It is crucial to complete this first section at the end, after you have gathered all the information. This is typically one or two pages which start with your elevator statement and highlight every facet of the business.Try to cover some of these points: business purpose, market opportunity, key business drivers and milestones, revenue, and P&L.

Check and review your plan

Keep in mind that you have only one shot to impress the investors. A well-written business plan, that has been thoroughly revised, not only increases your chances of obtaining a venture capital but also makes a good impression regarding your business. Don’t forget to ask for a second opinion and always DOUBLE CHECK.

Exit

Finish on how you think you’ll get a return on investment for investors, when it’s likely to happen and what it looks like (in terms of return) when you do. Remember that investors usually expect a return of investment with a multiple of at least 10 times what they commit. Show them how they can achieve this.

Is this the formula to a winning business plan? That depends on you. No matter how great your plan is, investors consider people and future plans. A solid, defensible business plan should be used as your guidance manual and point of reference when executing the strategy.