What do Investors Look For In Your Business Plan?

Your biggest strength when building a startup is working on a business plan. Software business plans can be 20 to 30 pages long. It can also be 10 pages long, as long as it everything you need to make sure your business not only survives but thrives once it launches in the market.

Without a business strategy, you may have a brilliant idea for an app or a business, but it may be short-lived. 17% of startups fail during the early stages because they do not have a viable business plan.

You may have done your homework on the market, on your audience etc. But it is equally important that you structure it into a strategy that applies to your goals.

Check out some of the vital elements of a great business plan that notable startup venture studios always incorporate for startup investment opportunities.

An Executive Summary

An executive summary is crucial when you are pitching your business to investors or simply want the marketing department to understand what your startup is all about. Like we said before the reader commits to the dozens of pages ahead, they should have something to intrigue them to it. Venture capitalists are often busy and have a roster of candidates for startup companies to invest in who they have to hear out next. Your executive summary is the first impression that will persuade them the plan is definitely worth perusing.

The executive summary should talk about your business concept which is what market you plan to cater to, what your product or service is exactly, and what your unique selling point is.

Then you should take a couple of lines to mention impressive financial points of your startup for example, how many units you have sold in the short span of time you have introduced the product. This must be followed by how much capital you require to grow your startup and what equity you are willing to give in exchange for it.

You should also list a short description of your business’s current standing. You must detail the legal structure of ownership and operation of startup, when it started, and who the principal owners are. You can also list the key professionals that make up your business hierarchy.

Business Description

A business description should give context regarding the industry you are trying to penetrate. When you are describing the industry make sure you discuss the present outlook as well as possibilities of future growth.

Explain the market and talk about how trends and changes in this market will affect your business. Make sure everything you say is backed by reliable research. A neat way to do this is to add footnotes with sources. This is very important when you are seeking funding because an investor wants to know your plan is based on credible data.

Move on to the structure of your startup. Is it a partnership, proprietorship, or a corporation.

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