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Small Business / Entrepreneurship News

Using your business plan
2012-04-12

business plan, business planning, plan your business, types of business plans, business plan tips,

This article was identified by Bill Payne  from Gust.

 

There are several different types of business plans, which are needed to successfully raise finance for your business. Below I’ve identified the various types of plans and how to avoid the common mistakes when implementing your plan.

 

 

Elevator Pitch – Verbal description of your business limited to a few minutes. It’s important you quickly illustrate the problem your product or service will solve and why customers will purchase it.

 

 

Video Pitch – A video of your elevator pitch, which you can then electronically use to introduce your business to potential investors. Make sure you use the media software to your full advantage by showing investors a working prototype or graphic.

 

 

Executive Summary – Consists of 1-3 pages outlining your business. It is a summary of your entire business plan and should emphasize the problem your customers are experiencing and your solution to this problem.

 

 

Powerpoint Presentation – Use Guy Kawasaki’s 10/20/30 rule better described as The Art of the Start; share content about your business in no more than 10 slides, deliver the presentation within 20 minutes and use a font size of 30.

 

 

Business Plan – A fully feasible description about your business. I think it is vital you produce a business plan as it helps you understand all the different aspects in your business. You can also use it in the future to compare actual results with your forecast. Most investors continue to demand a full business plan so they can use it as an outline for their due diligence before investing.

 

 

Here are some do’s and do not’s:

 

• Do conduct market research on your product or service before seeking investment. If you have a lack of market research investors will not be impressed as it shows you don’t have a full insight into the market you are trying to penetrate. I am biased but I would always advise entrepreneurs and pre-startups to carry out their primary market research with an experienced organisation like Marketest. The results you receive from your research are fundamental to your business’ future success.

 

• Don’t talk too much about products and technology, focus more on the problem you are solving for customers. Remember investors fund companies not products.

 

• Don’t provide investors with your business plan when you first meet them. Wait until you have attracted the investor’s attention with your idea and then they will ask for a copy.

 

• Don’t overemphasize the high importance of being first to market. Yes it is important to mention it but investor know that among the successful giants like Facebook, Google and Internet Explorer, none were first to penetrate their market.

 

• Do provide your contact information in your executive summary and business plan as well as providing the investor with your business card if you have one.

 

 

 

 

Read More:

Customer Testimonials: Turn Your Biggest Fans into Salespeople

5 tips for improving your website content

5 ways to prepare for Facebook Timeline

What To Do When You Have Nothing to Blog About

 

 

 

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