Business Plans Category - Angel Investors

03/04/202503/04/2025

Business Plan vs. Business Model: Key Differences & Importance

When starting or running a business, understanding the difference between a business plan and a business model is crucial. Many entrepreneurs mistakenly use these terms interchangeably, but they serve distinct purposes. A revenue model explains how a company creates, delivers, and captures value, whereas a business plan is a detailed document outlining a company’s goals, strategies, and financial projections.

This article will explore the key differences between a business plan and a business model, why both are important, and how they work together for business success.

What is a Business Model?

A revenue model defines how a company operates and makes money. It includes elements such as:

Value Proposition: What problem does the business solve for customers?
Revenue Streams: How does the business generate income? (e.g., product sales, subscriptions, advertising)
Customer Segments: Who are the target customers?
Channels: How does the business deliver its products or services? (e.g., online, retail stores, partnerships)
Key Resources & Activities: What assets and actions are essential for the business to function?

A well-defined business model helps entrepreneurs and investors understand the sustainability and profitability of a company.

Examples of Business Models

Subscription Model: Netflix, Spotify
Freemium Model: LinkedIn, Dropbox
E-commerce Model: Amazon, Shopify
Marketplace Model: Airbnb, Uber

What is a Business Plan?

A business plan is a comprehensive document that outlines a company’s objectives and the steps needed to achieve them. It typically includes:

Executive Summary: A brief overview of the business
Market Analysis: Research on industry trends and target customers
Business Model Description: How the company operates and makes money
Marketing & Sales Strategy: How the business will attract and retain customers
Operations Plan: Logistics, supply chain, and team structure
Financial Plan: Revenue forecasts, expenses, funding needs, and profitability projections

Business plans are often used to secure investment, loans, or partnerships.

Key Differences Between a Business Plan and a Business Model

Feature	Business Model	Business Plan
Purpose	Explains how the business creates and captures value	Outlines goals, strategies, and financial projections
Scope	Focuses on revenue streams and operations	Covers all aspects of business strategy
Flexibility	Can be changed and tested frequently	More structured and detailed
Usage	Helps in decision-making and innovation	Used for funding, planning, and growth strategy
Time Frame	Ongoing and evolving	Fixed for a period (e.g., 1-5 years)

Why Both Matter for Business Success

The Business Model Ensures Profitability
- A strong business model helps companies generate sustainable revenue. Without it, even a well-written business plan is useless.
The Business Plan Secures Funding and Provides Direction
- Investors and banks require a business plan to assess risks before funding a company.
Both Complement Each Other
- A revenue model is like the engine of a car, while the business plan is the roadmap guiding its journey.
Adaptability and Growth
- A revenue model can evolve with market changes, while a business plan provides structure to scale operations effectively.

Conclusion

A revenue model and a business plan serve different yet complementary purposes. The revenue model focuses on how a company makes money, while the business plan provides a roadmap for achieving business goals. Entrepreneurs need both to build a sustainable, scalable, and successful business.

By understanding these differences and leveraging both effectively, businesses can navigate challenges, secure funding, and achieve long-term success.

Who we are: Funded.com is a platform that is A+ BBB accredited over 10+ years. Access our network of Angel Investors, Venture Capital or Lenders. Let us professionally write your Business Plan.

12/01/2024

7 Holiday Marketing Ideas to Make Your Brand Shine

The holiday season is a critical time for businesses, offering opportunities to captivate audiences and drive sales. With the market saturated with festive campaigns, brands must think creatively to rise above the noise. Here are seven innovative marketing ideas to help your brand stand out this holiday season.

1. Leverage Augmented Reality (AR) Experiences

Augmented Reality is revolutionizing customer engagement. For the holidays, brands can create immersive AR experiences, such as virtual try-ons, interactive holiday-themed filters, or AR treasure hunts.

For example, a clothing retailer could allow customers to see how outfits look on them without stepping into a store. AR gamification, like a festive scavenger hunt, not only entertains but also encourages user-generated content. By blending technology with creativity, you can provide a memorable experience that resonates with tech-savvy consumers.

2. Launch Personalized Video Messages

Personalization remains one of the most effective marketing strategies. This holiday season, take it a step further by sending personalized video messages to your loyal customers.

Imagine a pre-recorded video of a “holiday elf” addressing customers by name, thanking them for their support, and highlighting exclusive offers. Tools like Vidyard or Loom make it easy to create and distribute personalized videos at scale. This approach creates a deeper emotional connection, ensuring your customers feel valued.

3. Host Virtual Holiday Events

Virtual events gained popularity during the pandemic and remain a powerful tool for engaging a wide audience. Consider hosting an online holiday party, festive webinar, or live-streamed product showcase.

These events can include interactive segments like Q&A sessions, giveaways, or live tutorials. For example, a cooking brand could host a live holiday recipe demo using their products. The interactive nature of virtual events keeps audiences engaged while driving brand visibility.

4. Create Limited-Edition Holiday Products

Nothing sparks excitement like exclusivity. Develop a line of limited-edition products or festive packaging for your existing items. Limited-time offerings not only boost demand but also create a sense of urgency among customers.

For instance, a coffee brand could release a “Holiday Blend” with a unique flavor profile and festive packaging. Promote these products heavily through social media, email campaigns, and influencer partnerships to maximize visibility.

5. Partner with Influencers for Holiday Content

Influencer marketing continues to be a powerhouse for driving brand awareness. Collaborate with influencers to create holiday-themed content that aligns with your brand’s values and offerings.

Choose influencers whose audiences match your target demographics. For example, a beauty brand could partner with makeup artists to showcase holiday looks using their products. Influencers can also host giveaways or share promo codes, amplifying your holiday campaigns’ reach.

6. Implement a ‘Give Back’ Campaig

The holiday season is a time for giving, and brands that demonstrate social responsibility tend to win customer loyalty. Consider launching a campaign where a portion of each purchase supports a cause.

For example, a clothing retailer could donate a percentage of their holiday sales to a local charity or organize a toy drive. Highlight these efforts in your marketing materials to show customers that purchasing from your brand contributes to a greater good.

7. Gamify Your Holiday Promotions

Gamification is an excellent way to make your marketing interactive and fun. Introduce games or challenges that reward customers with discounts, prizes, or exclusive offers.

For instance, create a festive online game where customers can “unwrap” digital gifts. Another idea is a holiday trivia contest on social media, with winners receiving gift cards or free products. Gamified promotions not only drive engagement but also foster a sense of community around your brand.

Execution Tips for a Successful Holiday Campaign

Start Early: Holiday campaigns are most effective when launched well in advance. This allows time to build anticipation.
Use Analytics: Monitor the performance of your campaigns in real time to adjust and optimize strategies.
Promote Across Channels: Utilize email, social media, paid ads, and your website to ensure maximum visibility.
Measure ROI: After the season, analyze campaign results to understand what worked and plan for the future.

Conclusion

The holiday season offers unparalleled opportunities for brands to connect with audiences in meaningful ways. By incorporating these innovative marketing ideas, your brand can capture attention, foster loyalty, and drive significant sales. Whether it’s through immersive AR experiences, personalized messages, or charitable campaigns, the key is to deliver value while spreading holiday cheer.

This year, let your creativity shine and make your brand the star of the season!

Who we are: Funded.com is a platform that is A+ BBB accredited over 10+ years. Access our network of Angel Investors, Venture Capital or Lenders. Let us professionally write your Business Plan.

09/26/2024

Big Marketing Wins for Small Businesses on a Budget

In today’s competitive market, small businesses often face the daunting challenge of marketing their products or services on a tight budget. With limited resources, it can seem impossible to compete with larger companies that have massive advertising budgets. However, with strategic planning, creativity, and leveraging digital platforms, small businesses can achieve significant marketing wins without breaking the bank. In this article, we’ll explore some cost-effective marketing strategies that can help small businesses make a big impact.

1. Leverage Social Media Marketing

Social media platforms like Facebook, Instagram, LinkedIn, and TikTok offer excellent opportunities for small businesses to reach a vast audience without spending much money. With billions of users active daily, businesses can build their brand, engage with customers, and even promote products organically.

Start Small, Grow Big: Begin by creating a presence on the platforms where your target audience is most active. You don’t have to be on every social media network. Focus on 1-2 platforms where you can consistently engage with your followers.

Engage with Your Audience: Interact with your audience by responding to comments, sharing user-generated content, and posting relevant and engaging content. By creating authentic relationships, you foster brand loyalty and increase word-of-mouth marketing without spending a dime.

Content is King: Visual content—videos, images, and infographics—tends to perform better on social media. Fortunately, tools like Canva allow businesses to create professional-looking graphics without hiring a designer.

2. Tap into Email Marketing

Email marketing remains one of the most cost-effective ways to keep in touch with your customers and promote your business. It’s estimated that email marketing can deliver an average return on investment (ROI) of $42 for every $1 spent.

Build an Email List: Start by encouraging customers to sign up for your newsletter or special offers. You can offer a free resource or a discount to incentivize them to join your email list.

Segment and Personalize: By segmenting your list based on customer preferences, buying history, or location, you can send targeted messages that resonate with your audience. Personalized emails tend to have higher open rates and better engagement.

Use Free Tools: Platforms like Mailchimp and Sendinblue offer free plans with limited features, which are perfect for small businesses just starting with email marketing.

3. Collaborate with Other Local Businesses

Partnering with other local businesses can be a win-win situation for both parties. Collaboration allows you to tap into each other’s customer base without spending much on marketing.

Co-host Events: Whether it’s a virtual workshop, webinar, or even a joint giveaway, partnering with complementary businesses helps you expand your reach and attract new customers.

Cross-Promote: Promote each other’s products or services through social media, email newsletters, or physical flyers. This strategy helps both businesses reach a wider audience.

4. Take Advantage of Free Publicity

Public relations (PR) isn’t just for big corporations. Local news outlets, blogs, and even podcasts are always looking for interesting stories. As a small business, you can pitch your business story to gain free publicity.

Write a Press Release: If your business is launching a new product, hosting an event, or has an interesting story, send a press release to local newspapers, radio stations, or online publications. Many media outlets are willing to cover small businesses, especially if it’s a unique or feel-good story.

Get Featured on Blogs: Reach out to local bloggers or influencers in your niche. They may be interested in writing about your business, especially if it benefits their audience. In return, offer them free products or services.

5. Maximize the Power of SEO

Search Engine Optimization (SEO) is one of the best ways to drive traffic to your website organically. By optimizing your website content, you can rank higher on search engines, making it easier for potential customers to find you.

Local SEO: If you’re a local business, it’s essential to optimize your site for local searches. Make sure your business is listed on Google My Business, and encourage customers to leave positive reviews.

Optimize Content for Keywords: Do some keyword research to find out what terms your audience is searching for. Use these keywords naturally in your blog posts, product descriptions, and meta tags.

6. Create Shareable Content

Content marketing is a low-cost way to establish your expertise and attract potential customers. By creating valuable content, like blog posts, videos, or how-to guides, you can engage your audience and boost your online presence.

Guest Blogging: Write guest posts for other websites or blogs in your industry. This will help you gain exposure and drive traffic back to your website.

Encourage Sharing: Make it easy for your audience to share your content on social media. Create eye-catching visuals or write compelling headlines to increase your chances of going viral.

Small businesses don’t need a big budget to make a significant impact. By focusing on cost-effective strategies like social media marketing, email marketing, SEO, and collaborations, they can compete in the marketplace and achieve big wins. All it takes is creativity, consistency, and an understanding of your audience.

Who we are: Funded.com is a platform that is A+ BBB accredited over 10+ years. Access our network of Angel Investors, Venture Capital or Lenders. Let us professionally write your Business Plan.

10/24/202310/24/2023

Plan Your Business Exit: Secure Your Legacy

Starting a business is often a labor of love. You invest your time, energy, and resources into nurturing it, watching it grow, and reaping the rewards of your hard work. But one aspect of entrepreneurship that many business owners tend to overlook is planning for the inevitable end of their journey. Every business, no matter how successful, must come to an end at some point. That’s why every business owner needs an exit plan, and in this article, we’ll explore why it’s crucial to develop one.

The Inevitability of Change

Change is an undeniable part of life, and the business world is no exception. Markets evolve, consumer preferences shift, and economic conditions fluctuate. Just as you had to adapt and change your business strategy to survive and thrive, you’ll eventually need to adapt to the changes that signal the end of your tenure as a business owner. An exit plan prepares you for these changes, ensuring a smoother transition.

Protecting Your Legacy

You’ve put your heart and soul into building your business. You’ve created something of value that reflects your vision and hard work. Without an exit plan, your legacy might be at risk. Careful planning allows you to protect your brand, reputation, and the goodwill you’ve established in your community.

Maximizing Value

An exit plan isn’t just about closing shop. It’s also about maximizing the value of your business. Whether you’re looking to sell your company, pass it on to family members, or explore other options, a well-thought-out exit plan helps you fetch the best possible price for your hard-earned assets. The earlier you start planning, the more opportunities you have to enhance the value of your business.

Peace of Mind

Running a business can be stressful. The uncertainties that come with the entrepreneurial journey can keep you up at night. An exit plan provides peace of mind, knowing that you have a well-defined path for the future. It helps reduce anxiety and allows you to focus on what matters most—running and growing your business in the present.

A Smooth Transition

One of the greatest challenges for any business owner is ensuring a smooth transition when the time comes to step down. An exit plan helps facilitate this transition, whether you’re handing the reins to a family member, selling to a third party, or implementing an employee stock ownership plan (ESOP). A well-executed transition is not only good for the business but also for your personal well-being.

Tax and Legal Considerations

Exiting a business can come with complex tax and legal implications. Without an exit plan, you might find yourself in a situation where you’re not optimizing your tax strategy or inadvertently violating legal regulations. Proper planning ensures you’re compliant with all laws and that you minimize tax liabilities.

A Retirement Strategy

For many entrepreneurs, their business is their retirement plan. It’s their most valuable asset, and they rely on its value to fund their retirement years. However, it’s essential to plan for your retirement beyond your business. An exit plan helps you diversify your assets and create a solid financial strategy for your post-business life.

Conclusion

As a business owner, developing an exit plan is not a sign of giving up; it’s a sign of responsible, forward-thinking entrepreneurship. Your business journey will inevitably come to an end, and a well-considered exit plan ensures that end is as successful and rewarding as the journey itself. It protects your legacy, maximizes value, and provides you with the peace of mind to focus on what matters most right now running and growing your business. So, don’t wait; it’s time to develop your exit plan. Your future self will thank you for it.

Who we are: Funded.com is a platform that is A+ BBB accredited over 10+ years. Access our network of Angel Investors, Venture Capital or Lenders. Let us professionally write your Business Plan.

07/12/202307/12/2023

Business Models and Innovation: Fueling Growth and Success

In today’s rapidly evolving business landscape, innovation has become a cornerstone of success. Organizations that can adapt and embrace new ideas have a competitive advantage over their counterparts. One key aspect of this innovation journey is the development of effective business models that can drive growth, profitability, and sustainable success. In this article, we will explore the relationship between business models and innovation, highlighting their significance in creating a thriving business ecosystem.

Understanding Business Models

A business model can be defined as a framework that outlines how an organization creates, delivers, and captures value. It encompasses various components, such as target customers, value propositions, revenue streams, distribution channels, and cost structure. A well-designed business model aligns these elements in a coherent manner, enabling a company to generate revenue while delivering superior customer experiences.

The Role of Innovation in Business Models

Innovation plays a pivotal role in shaping and refining business models. It allows companies to identify and exploit new opportunities, respond to emerging market trends, and stay ahead of the competition. By fostering a culture of innovation, organizations can break away from traditional methods and embrace new approaches to problem-solving, product development, and customer engagement.

Types of Business Model Innovation

Business model innovation can occur in various forms, ranging from incremental improvements to radical transformations. Let’s explore some common types of business model innovations:

Value Proposition Innovation: This involves enhancing the core value delivered to customers by improving existing products/services or creating new ones that cater to emerging needs and preferences.

Revenue Model Innovation: Companies can explore alternative revenue streams by adopting new pricing models, subscription-based services, licensing agreements, or leveraging data monetization opportunities.

Distribution Channel Innovation: With the rise of digital platforms, companies can leverage e-commerce, online marketplaces, and social media channels to reach customers directly, cutting out intermediaries and reducing costs.

Cost Structure Innovation: Organizations can optimize their operations, streamline processes, and leverage technology to reduce costs, improve efficiency, and enhance profitability.

Ecosystem Innovation: Collaborative partnerships, strategic alliances, and platform-based models can create synergies and unlock new sources of value by integrating complementary products or services.

Benefits of Business Model Innovation

Business model innovation offers several compelling benefits for organizations willing to embrace it:

Competitive Advantage: By introducing novel approaches and value propositions, companies can differentiate themselves from competitors and gain a unique market position.

Adaptability and Resilience: A flexible business model allows organizations to adapt to changing market dynamics, technological advancements, and evolving customer needs, ensuring long-term viability.

Revenue Growth: Successful business model innovation can unlock new revenue streams, expand market reach, and attract new customer segments, resulting in accelerated growth.

Customer-Centricity: Innovation-driven business models prioritize customer needs and preferences, leading to enhanced customer satisfaction and loyalty.

Attraction of Talent and Investment: Companies with innovative business models often attract top talent and investor interest, providing access to resources and further fueling growth.

Conclusion

Innovation is the lifeblood of any successful business, and the design of an effective business model is the canvas on which innovation can thrive. By continuously exploring new ideas, experimenting with different approaches, and adapting to evolving market conditions, organizations can stay ahead of the curve and drive sustainable growth. Embracing business model innovation enables companies to unlock new opportunities, deliver exceptional value to customers, and secure a competitive advantage in today’s dynamic business landscape.

Who we are: Funded.com is a platform that is A+ BBB accredited over 10+ years. Access our network of Angel Investors, Venture Capital or Lenders. Let us professionally write your Business Plan.

06/29/202307/11/2023

Strategic Pathways: Unleashing Business Planning for Success

In the dynamic and ever-changing business landscape, having a solid plan and a well-defined strategy is crucial for long-term success. Effective business planning and strategy development help organizations navigate uncertainties, seize opportunities, and achieve their objectives. In this blog article, we will explore the key elements of business planning and strategy development, along with practical tips to help you master this essential aspect of running a successful business.

Understanding Business Planning:

Business planning involves setting objectives, identifying strategies, and outlining the actions necessary to achieve those objectives. It provides a roadmap for success and serves as a guide for decision-making and resource allocation. A comprehensive business plan typically includes elements such as an executive summary, market analysis, competitive assessment, financial projections, and implementation strategies.

The Importance of Strategy Development:

While business planning focuses on the overall direction and objectives, strategy development delves deeper into the specific approaches and tactics needed to achieve those objectives. Developing a robust strategy involves analyzing the competitive landscape, identifying market opportunities, assessing internal capabilities, and aligning resources to maximize competitive advantage. A well-crafted strategy provides clarity, sets priorities, and ensures efficient resource allocation.

Key Steps in Business Planning and Strategy Development:

A. Conduct a Situation Analysis: Begin by evaluating your internal and external environment. Assess your strengths, weaknesses, opportunities, and threats (SWOT analysis) to gain a comprehensive understanding of your business’s current state and competitive landscape.

B. Define Clear Objectives: Establish specific, measurable, attainable, relevant, and time-bound (SMART) objectives. Clear objectives provide a sense of purpose and direction for your business and serve as a yardstick for evaluating success.

C. Identify Target Market and Customers: Determine your target market segment and identify your ideal customers. Understand their needs, preferences, and buying behavior to tailor your strategies accordingly.

D. Develop Competitive Strategies: Analyze your competition and devise strategies to differentiate your business. Identify unique value propositions and develop competitive advantages that set you apart from others in the market.

E. Create an Action Plan: Outline the specific actions and initiatives required to achieve your objectives. Break down your plan into manageable tasks, set timelines, and assign responsibilities to ensure accountability and smooth execution.

F. Monitor and Evaluate: Regularly review your progress against the set objectives and make adjustments as needed. Monitor market trends, consumer behavior, and industry developments to remain agile and responsive to changes.

Tips for Effective Business Planning and Strategy Development:

A. Foster a Culture of Innovation: Encourage creativity and foster an environment where new ideas can thrive. Embrace innovation as a key driver of growth and adaptability.

B. Involve Key Stakeholders: Engage key stakeholders, including employees, customers, and partners, in the planning and strategy development process. Their input and perspectives can provide valuable insights and enhance the effectiveness of your plans.

C. Embrace Flexibility: Recognize that business environments are constantly evolving. Build flexibility into your plans and strategies to accommodate unforeseen changes and seize emerging opportunities.

D. Leverage Technology: Utilize technology tools and platforms to streamline planning processes, gather data-driven insights, and enhance collaboration within your organization.

E. Continuously Learn and Improve: Regularly assess the outcomes of your planning and strategy efforts. Learn from successes and failures, incorporate feedback, and adapt your approach to improve future outcomes.

Conclusion:

Business planning and strategy development are critical components of achieving long-term success in today’s competitive marketplace. By understanding the key elements and following the steps outlined in this article, you can develop a robust plan and strategy that align with your business objectives, adapt to changing circumstances, and drive sustainable growth. Remember to embrace innovation, involve stakeholders, and remain agile as you navigate the ever-evolving business landscape.

Who we are: Funded.com is a platform that is A+ BBB rated over 10+ years. Access our network of Investors, get instantly matched with a Lender, or get a business plan by visiting us Funded.com

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06/14/2023

Market Research Unleashed: Mastering Insights for Effective Marketing

In today’s highly competitive business landscape, understanding the target audience, market size, customer needs, and competition has become paramount for success. This is where market research steps in as a powerful tool, enabling businesses to gather vital information that drives informed decision-making and the development of effective marketing strategies. In this article, we will delve into the significance of market research and explore the essential steps involved in conducting comprehensive research to uncover valuable insights.

Defining the Purpose and Objectives:

Before embarking on market research, it’s crucial to clearly define the purpose and objectives. What specific information are you seeking to uncover? Are you looking to understand customer preferences, evaluate market size, identify gaps in the market, or analyze competitor strategies? Defining the purpose will provide a clear direction for the research and ensure that the collected data is relevant and actionable.

Identifying the Target Audience:

To conduct effective market research, you must identify and understand your target audience—the individuals or groups who are most likely to engage with your product or service. Demographic factors, such as age, gender, location, and income, play a significant role in defining your target audience. By narrowing down your focus, you can gather insights specific to their needs, preferences, behavior, and purchasing patterns.

Choosing the Right Research Methodology:

Market research can be approached through various methodologies, depending on the nature of the information you seek. Quantitative research involves collecting numerical data through surveys, questionnaires, and statistical analysis, providing insights into market size and customer preferences. Qualitative research, on the other hand, focuses on gathering in-depth insights through methods like interviews, focus groups, and observations. Combining both methodologies can yield a comprehensive understanding of your target audience and market dynamics.

Gathering Data on Market Size and Potential:

Understanding the size and potential of your target market is crucial for strategic decision-making. Through market sizing techniques, you can estimate the total addressable market (TAM), serviceable available market (SAM), and your share of the market (SOM). This data enables you to gauge the growth potential, identify market trends, and assess the feasibility of your business objectives.

Exploring Customer Needs and Preferences:

To develop products or services that resonate with your target audience, you must gain a deep understanding of their needs, pain points, and preferences. Surveys, interviews, and focus groups can help uncover valuable insights into what customers value most, their motivations, and the challenges they face. This knowledge empowers you to tailor your offerings, improve customer satisfaction, and differentiate yourself from competitors.

Analyzing Competition:

Analyzing the competitive landscape is a critical aspect of market research. By studying your competitors’ strategies, products, pricing, distribution channels, and marketing tactics, you can identify gaps in the market and potential areas for differentiation. This analysis enables you to position your brand effectively and develop strategies that highlight your unique value proposition.

Making Informed Decisions and Developing Effective Marketing Strategies:

Armed with the insights gathered from market research, you can make informed decisions and develop effective marketing strategies. By aligning your offerings with customer needs, you can create targeted marketing campaigns, optimize pricing strategies, refine product features, and tailor your messaging to resonate with your audience. The data-driven approach minimizes risks and increases the likelihood of success in the market.

Conclusion:

Market research is a powerful tool that empowers businesses to understand their target audience, assess market size and potential, analyze customer needs, and stay ahead of the competition. By conducting comprehensive research, companies can make informed decisions and develop effective marketing strategies that drive business growth. In a rapidly evolving business environment, market research remains.

Who we are: Funded.com is a platform that is A+ BBB rated over 10+ years. Access our network of Investors, get instantly matched with a Lender, or get a business plan by visiting us Funded.com

You can review our featured partners to help your success with your business or project.

05/08/202305/08/2023

How Do You Know Your Business Ideas are Good?

Investors want to fund good business ideas. That’s a broad statement because what seems like a good idea to me may be different from what seems like a good idea to you. So many ideas never seem to go anywhere. Some are just so uninspiring that they can’t seem to get the attention of anyone, much less investors. You can even write a whole business plan around a bad idea, leading to great disappointment when investors spot the fact it’s bad.

A good business idea is much more than just an idea. You can sit there all day and come up with ideas, but that doesn’t make them good. Good business ideas have certain qualities that differentiate them from other ideas. For one thing, a good business idea fulfills an unmet customer need, and it is often a need the consumer doesn’t even recognize yet. That may sound odd, but great ideas are often not great until someone invents a product or service.

Determining if a business idea is a good one requires more than just knowing the market will appreciate products or services. The idea must be feasible and realistic in terms of production costs, the time from funding to sales, profitability and safety. A good business idea is also one that can be brought to fruition because the entrepreneurs have the knowledge and skills needed.

There are more qualities associated with good business ideas, but one of the most important is related to innovation. Good business ideas offer a new twist on products or represent creative and innovative new products. The new twist or innovation should represent something that matters to people which means it brings some kind of satisfaction.

There are no hard and fast rules or magic formula to define a good business idea. Instead, investors will consider all of the qualities of the idea coupled with the marketing, competitive and financial factors.

Who we are: Funded.com is a platform that is A+ BBB rated over 10+ years. Access our network of Investors, get instantly matched with a Lender, or get a business plan by visiting us Funded.com

You can review our featured partners to help your success with your business or project.

02/21/202302/21/2023

Business Plan Mistakes to Avoid

Writing your business plan is probably one of the most important business duties you will assume. If you follow a quality business plans template you will cover the basics of the plans, but there are still common mistakes made by entrepreneurs that hurt their cause. It is reminiscent of the teacher in school who gave you the parts of the essay for easy outlining and then marks points off because the essay is too long or too boring.

Following are some of the most common errors made in business plans. Some of them are simple errors, but that doesn’t minimize their importance. Other are mistakes usually made due to lack of experience. Either way, these mistakes can hurt the effectiveness of the overall business plan.

Including more than one business model in the false belief that more information and more strategies are always better (not true!)

Lacking cohesiveness throughout the business plans

Difficult to read due to illogical or poor layout (another reason to use a business plan template)

Including unsupported projections or estimates

Not fully analyzing the competition

Failing to prepare all required sections of a business plans (making your plan look amateurish or as if you are hiding something)

No value proposition separating your business from the competition

Not letting anyone else read your business plan and provide feedback before submission

Making the business plan difficult to read because it is written using mostly hard-to-understand industry or discipline terms (i.e. your funder may not know much about technology so using technical jargon will make the plan too difficult to understand)

Showing lack of understanding of the niche market to be served

These are certainly not the only mistakes, but they are some of the most common. You want to avoid writing a business plan that is too long and tedious, is not well written, and is boring. Though funders are often professionals looking for the next great business investment opportunity, they are also human. Grammatical errors and boring prose can quickly discourage anyone reading the business plan. It seems your essay teacher was right all along.

Who we are: Funded.com is a platform that is A+ BBB rated over 10+ years. Access our network of Investors, get instantly matched with a Lender, or get a business plan by visiting us Funded.com

You can review our featured partners to help your success with your business or project.

02/14/202302/14/2023

Does the Business Plan State Your Value Proposition?

The ideal business plan is composed of more than just history, marketing and financial sections. It should also convey the value proposition to the angel investors you approach about business funding. Typically, angel investors are sought after a business has been established so it’s possible to show real products, actual customers and a working business model. However, the angel investors will want to know how you define the company’s value proposition.

The business value proposition is developed with the marketplace in mind. The value proposition defines why people in the target market should buy your products or services. It defines what benefits purchase of the goods or services will provide or what problem will be solved by product or service use. It sounds like the statement would be long, but it should be kept short which forces the business owner to concisely explain the value the company is bringing to the marketplace and the relevance of the product to the customer. If it takes a long winded explanation then there’s good chance the business owner has not fully developed the business concept.

The value proposition is important to the angel investor because it concisely differentiates the business among its competitors and reflects an alignment of business operations with the market. The value proposition must also reflect specific results or performance and is not a generalized statement that any business could use. For example, a consulting business could say that it can help customers get a high return on investment , but that would be a weak value proposition. A strong value proposition would say that the business can demonstrate customers will experience an improvement of 15% Return on Investment (ROI) by using the company’s state-of-the-art proprietary software.

Angel investors expect a business plan to have a value proposition that quantifies market results and also states the source of its competitive advantage. That should never be a problem if a company is serious about success.

Who we are: Funded.com is a platform that is A+ BBB rated over 10+ years. Access our network of Investors, get instantly matched with a Lender, or get a business plan by visiting us Funded.com

You can review our featured partners to help your success with your business or project.