Finding Funding, Part 1
Tips for writing a financing-friendly business plan
One of the primary purposes of a business plan is to help youobtain financing for your business. When writing your plan,however, it's important to remember who those financing sourcesare likely to be.
Bankers, investors, venture capitalists and investment advisorsare sophisticated in business and financial matters. How can youensure your plan makes the right impression? These tips arekey:
Avoid hype. While many entrepreneurs tend to be gamblers whobelieve in relying on their gut feelings, financial types arelikely to go "by the book." If your business plan praisesyour idea with superlatives like "one of a kind,""unique" or "unprecedented," your readers arelikely to be turned off. Wild, unsubstantiated promises orunfounded conclusions tell financial sources you are inexperienced,naive and reckless.
Tomorrow: More tips on writing your business plan.
Excerpted from Start Your Own Business: The Only Start-Up GuideYou'll Ever Need
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