In a poll of over 140 people, we found that a good business plan is the #1 most important factor in deciding whether to fund a friend’s or relative’s business.
Business plans are critical for setting goals and mapping out your plan to achieve those goals. They are also critical in order to raise capital.
However, there are some funders and investors that say they don’t need a business plan. Rather, they just want to see a company slide presentation and/or a 1-3 page Executive Summary.
So, at this point you are probably asking yourself, “So, do I, or do I not, need a business plan?”
The answer is a resounding “YES.” Let me explain.
A key reason for creating a formal business plan is the knowledge that comes out of it. Specifically, the business plan process forces you to make a lot of key decisions about your business. For instance, writing down your marketing plan forces you to determine the marketing tactics you will employ.
Likewise, the business plan development process forces you to assess your market, identify customer segments and customer needs, and determine the strengths and weaknesses of your competitors. This is all critical information that you need to successfully operate your business.
The U.S. Small Business Administration, in a study called “The Small Business Economy,” found a direct correlation between a business’ success and its creation of a formal business plan. That’s because the business plan development process forces you to really think through the business and make informed decisions.
Likewise, the business plan development process gives you the information that you need to include in your investor slide presentation, executive summary, and your Raise (fundraising profile on 40Billion). For example, one section needs to include your financial projections and uses of funding. Another section must talk about your marketing plan. All of this information comes directly from your business plan.
In a poll of over 140 people, we found that a good business plan is the #1 most important factor in deciding whether to fund a friend’s or relative’s business. So, the best thing you can do as an entrepreneur to increase your chances of success and raise money for your business is to turn your idea into a business plan.
The second best thing you can do is upload your business plan or executive summary on 40Billion.com when you start a Raise, and let funders download your business plan document easily with just one click.
Don’t have a business plan yet? Need help writing your business plan? Use our informative business startup guide to discover quick and useful tips for writing a business plan. Download the short MP3 audio file and listen to it on your computer or in your iPod, while at home, in the office, or on-the-go.
Then, download the easy-to-use business plan presentation template that comes with the startup guide at http://www.40billion.com/startupguides/ today.
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What is the #1 cause of business failure?
May 30, 2012 Leave a comment
According to the SBA, the #1 reason why entrepreneurs fail to launch and grow successful businesses is simple: LACK OF FUNDING
So what happens if you can’t get funding? Well, if you don’t have any money, you can’t even start your business in the first place. And even if you do start it, if you have too little funding, chances are good you’ll go out of business!
Here’s the GOOD NEWS: You can avoid business failure by learning how to successfully raise money from everyday investors and funders in your social network and on 40Billion.com.
Think about it… if you knew how to quickly and easily raise $20,000 or $200,000, most of your problems would disappear, wouldn’t they?
www.40billion.com
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