One of the primary purposes of a business plan is to help you obtain financing for your business. When writing your plan, however, it's important to remember who those financing sources are likely to be.
Bankers, investors, venture capitalists and investment advisors are sophisticated in business and financial matters. How can you ensure your plan makes the right impression? These tips are key:
Avoid hype. While many entrepreneurs tend to be gamblers who believe in relying on their gut feelings, financial types are likely to go "by the book." If your business plan praises your idea with superlatives like "one of a kind," "unique" or "unprecedented," your readers are likely to be turned off. Wild, unsubstantiated promises or unfounded conclusions tell financial sources you are inexperienced, naive and reckless.
Tomorrow: More tips on writing your business plan.