Outlining your exit strategy is a golden opportunity to demonstrate vision and guile if it is presented in a fashion that is both reasonable and supportable. Knowing how to write a business plan correctly will enable you to formulate a reasonable and investable exit strategy that will appeal to lenders and investors. Investors want to make a healthy return for their investment, generally 10 times the initial investment. In ninety nine percent of cases this will take time to deliver and investors know it.
“Nobody Can Copy Us”
The only way this statement is true is if you have an amazing invention that took years of R&D to develop and you have a watertight patent. Even then the patent will typically have a timeframe on it meaning the window of opportunity is finite. This statement is used with alarming frequency and it incites contempt in the eyes of investors and lenders. Unless you do have that patent in your pocket do not claim this to be true in your business plan. It shows a level of naivety that condemns the proponent to “un-investable” status immediately. It will also generate a barrage of questions around the actual uniqueness of the product and the competition it faces. If you make this statement when you write a business plan it had better be true!
The Correct Mindset
For Pitching A Business Plan
Your business plan is your strategic touchstone and should be moving continually with your business. Not only is it the internal heart of your strategic planning it is also a sales document and when pitching for funding it is helpful to remember the following points:
- View the plan from the audience’ perspective
- Cover off the risks and show a detailed action plan to mitigate them
- Set realistic business objectives and measureable milestones
- Know your top line numbers and market information
- Demonstrate how the opportunity will benefit the audience
Now you know the common mistakes it’s time to get your business plan underway. For more information on how to write a business plan and how to get your business up and running visit our website.