You have figured out many things about your startup by now. The next big step is to communicate them and attract potential external investors!
To achieve that you need to write down a business plan that will reflect what you have in mind. Easy to say but extremely difficult to write it down- at least for some people. YOU know your idea but the rest of the world doesn’t- at least for now 🙂
There are many suggestions on how to write a good busines plan and it’s easy to get lost. Ideally one should not go too deep into technicalities. Keep it clear and to the point. Bare in mind that different countries have different styles. It is also crucial to keep your target investor in mind. For example, a proposal to a VC could be different from one to a bank. At the end of the day the words you use need to stand out and have the ability to attract an investor. So work on those KEY words!
I would highlight 4 points that I find important when it comes to a business proposal:
Be simple. Simplicity is key. People need to understand both your current ideas and your longterm vision. To quote Albert Einstein “everything should be made as simple as possible, but not simpler.” You can go into the finer details after someone shows interest in your business plan.
Be precise. When you write something, double check that is correct and accurate. It has to be to the point. Don’t be vague and do the math right !
Be personal. Add your stamp. Be authentic. Add a personal touch. Your startup is YOUR ‘’baby’’ , so show your love.
Be honest. Point out the weaknesses, potential competitors and problems you believe you may face. Nothing should stay hidden and the moment you hide something, you lose trust. Everybody likes a happy ending but this is not a hollywood movie!
Further suggestions… there are some great online tools that can help you organise and shape your business plan. Personally, I have used Enloop. You can add/edit and present your business plan in an attractive manner.
Last but not least, as often as you can ADD to your plan. All the new elements, updates, people, financials, collaborators etc. need updating ! While this can be difficult to keep up with, especially when things start to get busy, it is essential! An updated business plan is crucial, both for you and for your potential investors.
How often do you update your business plan? Do you have any personal tips for an awesome business plan to share?
ps: a business plan reflects the vision of your company. It should be sexy, shiny and crystal clear!