Importance of the Business Plan
In the process of raising capital, whether it is through venture capitalists, angel investors, a bank loan, or crowdsourcing, you will need an effective strategy for pitching your new business. Your business plan will be the first and most important aspect of your pitch. While you are responsible for selling your ideas to potential investors, your business plan is the tool that will get you in their doors in the first place. It is also the screenplay on which you can rely during your pitch.
Consider the Details
Once you have developed your business plan, make sure that your presentation of it is equally professional. A plan that is professionally printed on heavier stock and bound with a cover is likely to receive a greater deal of consideration than a plan printed and stapled at home. Do not undermine your hard work and great ideas by scrimping on a few details.
Pitch Your Plan
The method by which you raise capital will depend on your type of business and the amount you are seeking, in addition to other factors. Possibilities include commercial lenders, venture capitalists, angel investors, Small Business Administration (SBA) loans, or even friends and family. Whatever source you pursue, developing a solid business plan is the first step to an informed and convincing pitch. By developing a well-researched, thorough plan that touches on all aspects of your new business, including detailed financial projections, you can rest assured that you will be able to convince others of your ability to succeed.