An intelligent investor will know a good business plan when they see one, and anything but will result in them rejecting your proposal. If you want to attract an investor, it is vital you make time to create a business plan that not only reflects your services, but entices them to become part of your company. Here are the important sections you will want to include in your proposal.

The Executive Summary

The Executive Summary is basically your initial pitch. It’s here that a potential investor will decide whether to read on or move on. You must therefore offer a clear explanation of your company and how you plan to grow. Qorus is offering some informative tips on the prose of proposals.

This section is your opportunity to brag about your USP, industry rank and how you aim to fill a gap in the market. You should also include your financial projections, which should include your company’s projected expenditure, revenue and profit over the next five years. You should also detail your investment figure and how you plan to use the funding.

The Company Overview

The company overview will offer a history into how your business was formed and your legal company status. You will also highlight your past achievements, which could provide an investor with an indication of your future success.

Company Overview

The Market Overview

This might be an investor’s first time in your industry, so they will want to know more about your sector – or find out how much you know. You should therefore identify the size of your competition, detail the different sectors in your industry and the market trends that can affect your company. Describe how much of the market you could attain with their investment and why you believe customers will turn to your business over industry rivals.

The Customer Analysis

You must prove to your investor that you understand your demographic. Identify the gender, age range, salary, education and geographical location of your core customers, and why they need your products or services. For example, customers may appreciate your proximity, quality of service, affordable pricing or fast delivery.

The Competitor Analysis

Every business must know the big, medium and small players in their industry. You must therefore include a competitor analysis section that indicates your direct competitors, whilst mentioning each company’s strengths and weaknesses.

Competitor Analysis

Your indirect competitors will be people who may not have the exact same business model, but are still competing in the marketplace for custom. For example, a Spanish restaurant could be in competition with a Turkish restaurant. Again, mention the strengths and weakness of their services.

You must, however, prove to a potential investor that you have a competitive advantage, so don’t be afraid to highlight your unique selling point and how it surpasses your rivals’ business model.

The Marketing Plan

An experienced investor will know an effective marketing plan will be key to your company’s success, so offer a detailed marketing plan or they could lose interest in your proposal. How much money do you plan to invest in the marketing campaign? Where do you plan on promoting your items and services: online or in a physical location?