There’s only one way to win over investors – A good business idea presented in a professional, concise and compelling manner. A good business plan can help you take your business idea off the ground. Without a well thought out plan furnished in advance, many investors won’t even interview you. And the plan must be outstanding if you want to secure investment funds.
How do you earn the support of decisions makers in the room? How will you make things drive in the right direction by using this powerful tool called ‘Business Plan’. Let’s dive right in.
According to Nancy Duarte, the author of the HBR Guide to Persuasive Presentations, “The idea may be great, but if it’s not communicated well, it won’t get any traction.”
To simply state, if you are not able to craft a memorable presentation to present your business idea/model, you might have to walk out the meeting room in despair. Many entrepreneurs are tempted to demonstrate facts and figures to do the persuading, but according to business leaders, the best way to hook an audience is through a storytelling experience. A “story” behind the foundation of the idea and how the product is going to change lives is key to connect with the panel in the room. The more emotions you can inject into your pitch, the better your case will be.
“Once you have their attention, content is key”, says Martin Zwilling, author of Do You Have What It Takes to Be an Entrepreneur? and Attracting an Angel. He is also a founder and CEO of Startup Professionals.
Once you are able to attract investors with your story, the next slide and all the other slides must elaborate lightweight visions of the future. Your investor wants to see the key data of your business model, which includes financial projections and revenue model. This helps them understand how quantifiable it would be to invest in your business. Avoid circling around cliched’ words like “easy to use”, “affordable”, “disruptive”. Provide USPs that are unique and have the potential to make your business stand out amongst others. Research past presentations from your industry and the outcomes to make sure you have all your bases covered.
In order to make sound projections your Business Plan must cover the following:
- Customer problem and how your product solves it
- The size of your market
- Who your competitors are
- What’s your sustainable competitive advantage
- Project revenues, costs, and investment expectations.
- Investor return and payback processes
Always remember that well-presented projections can do wonders for persuading an investor. But an overwhelming number of slides with needless facts and figures with tired visuals will quickly lose you the favor.
In the end, the best person to write a business plan is you! But if you don’t know how and where to start, you can always take help of business plan templates to get started. Whatever you choose to do make sure you get everything out of the business that you want.