A business plan doesn’t guarantee that you’ll convince investors to take a chance on your company. According to David Lavinsky, president and co-founder of consulting and funding firm Growthink:
… The mindset of most entrepreneurs when completing their business plan is to tell the whole story of their business… While this mindset is helpful in creating a business plan for internal purposes, it generally results in too much information for investors and lenders.
The solution, according to Lavinsky, is to give the customer – that is, your investor – what he wants.
Let’s look at it from the investor and lender standpoint. They don’t need to know every detail about your company. Rather, they simply need to determine whether or not your venture could provide them with an adequate return on investment or ROI.
How do you do that? By realizing that first and foremost, your business plan is a marketing document. That is, your plan must market your company to investors and lenders to get them excited about investing in your company.
IMPORTANT ETHICAL NOTE: Marketing your company doesn’t mean that you lie about your company. It doesn’t mean that you leave out facts that your investor is entitled to know. It does mean that you focus on how your company will benefit your customer – again, your investor. Lavinsky again:
In marketing your company, you don’t give every detail about it, just like deodorant companies don’t discuss every ingredient in their product when marketing it. Rather, you focus more on the benefits.
Let me give you some examples. Rather than going on and on about market trends and statistics, show the data and point out how it benefits your company’s potential success. And rather than talk about all the details of your marketing plan, discuss how your marketing plan makes your company “uniquely qualified to succeed.”
What’s one way to do that? According to Lavinsky:
Another option is to hire a business plan writer to develop your plan for you. While this will cost more money, the writer should be able to save you considerable time in creating your plan. Also, if the writer has experience and a good marketing background, he or she can help position your company to investors and lenders properly in the plan. (Emphasis ours)
Sierra Investment Group Inc. Carson City Nevada is a small business plan writing service and small business funding resource. They can be reached toll-free at (800) 323-6298 from 8 a.m. to 4 p.m., Monday through Friday, or at firstname.lastname@example.org