Entrepreneurs listen to professionals working with investors tell them over and over again that they need to develop a business plan. Instead of getting help, some managers finally develop one on their own, but it doesn’t take long to figure out that it lacks real effort. Investors are savvy and have read hundreds of business plans so recognize when a plan has been assembled in a haphazard manner.
In other words, you can’t fool the experts. A business plan lacking quality reflects a lack of concern about the business brand and on the business owners and management. A poorly designed business plan also sends a message that the business owners have not taken long range planning seriously and so casts doubt on the ability of the enterprise to succeed over the long term. It will be almost impossible to attract investors with this kind of business plan. Investors need confidence that their funding will be used in a successful business model that will earn the return expected.
What constitutes a poor quality business plan? First, they typically leave out important sections like the market analysis. Secondly, a plan that is poorly organized and difficult to read makes it nearly impossible to find information, and that discourages investors. Third, a business plan filled with typos and grammatical errors indicates that no one read the plan more than once or that it was written quickly with little thought. Fourth, a plan with inadequate research and lacking data and facts that can be verified will also turn investors away.
If you want to ensure investors pay attention to your business plan, then you need to pay attention to it too. To get the attention of investors, entrepreneurs need to develop a solid plan that reflects thoughtfulness, research and long range planning. A high quality business plan is a blueprint for success, and that’s exactly what investors are looking for – success potential. If you are not comfortable writing a business plan then the first step to take is getting experienced help with the preparation. There is just too much riding on the business plan to do otherwise.
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