As an entrepreneur, you need to come up with a solid business plan. A business plan does not always predict the future of your business, but it will serve as an early and middle stage of business development. Keep in mind, if you know this, it will work and help to attract funds and potentially get new clients. In order for your business plan to become more solid and attractive, you need to think like an investor. This can help you increase your chances, be more objective, and focus on the financial aspects especially in practice. To find out, you need to know what aspects are prioritized by investors, as reported by Entrepreneur.
Profitability
Every investor wants to contribute to a business with high profitability potential. Reliable or savvy investors are usually more interested in how practical the idea is, how much it costs, and how quickly it starts making money.
Scalability
Investors are also usually concerned with scalability. If you don’t have an expansion plan or a plan to multiply your income, then there’s a hard limit to how much money the business can make.
Mitigation of risk
Every business will come with risk, but a good investor will go to great lengths to analyze the risk and mitigate that risk.
Novelty
To some extent, investors also value novelty. Investors tend to be attracted to things that stand out. So, how can you take advantage of the investor’s lens and make your business plan even more attractive?
Research and objective data
Focus on research and objective data to support all of your conclusions. If you make a claim in a business plan, you should be prepared to back it up with numbers and quotes.
Full overview
Your product may be attractive, but not practical. Investors want to see the full picture, and don’t want to see things that can cover up the “dirty” details.
Honest thanks
Investors like to see profitable models, but do not like things that are dubious or unrealistic.
Long term future
You may have solid plans for your first year of business, but what will your business look like a decade from now? The further you plan for the future, the better off your business will be, and flexible enough to accommodate changing variables such as evolving technology or adaptive consumer preferences.
