What is special about a business plan for investors?
Investors will require much more information about your business project than what is covered in the Lender’s or Grant business plan. They drill down on strategy, marketing, positioning, and financial situation of the company and thoroughly consider the management team.
Generally, investors look for 3 key factors:
- The opportunity they could find in your business and what makes it unique
- The amount of investment required and return on it. Obviously, like any financing agency, investors are looking for profit. They would like to see a 20-30% return on their investment or to have adequate share in your company
- Your management team. Any business strategy is implemented by people and that is why investors want to know who is involved in your project. They want to feel confident in your ability to make the business run and what you plan to do to succeed.
What will we focus on while developing the business plan?
- The marketing section of this type of business plan is one of the most important and challenging sections to develop. It requires in-depth market research. We have to determine who will buy your product or service and why, where, when, how often and for what price. Our market analysts will perform a thorough research of industry and demographic trends, your competitors, target market, product/services strengths and weaknesses, prospect profiles, etc, using a variety of databases, Statistic Canada and Census data.
- Investors may require the expanded financial statements and a comprehensive financial and sales forecast. Our experts will take sufficient time to thoroughly analyze your financial figures and prepare a cash flow, income statements and a balance sheet in accordance with the lender’s requirements. They will list your assets and liabilities, determine precisely the amount of money you need and calculate the level of output required to break even.
- We will specify the return-on-investment, highlight critical stages of the production/delivery process, identify risks, and develop an exit strategy.
- We will include details on the expertise, experience, and special relevant skills of you and every key-member of your management team.
How long will it take us to write the business plan?
After we clarify and understand all aspects of your business concept, we are normally able to write a draft version of your business plan within 3-5 weeks.