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2.
Detailed market research
You must demonstrate that you know your customers and the needs
that your product or service is addressing. You must show the size of your
market and know its trends. Forecast how your market will grow or
change over the next few years. Brief descriptions of market
research studies and projections by industry experts might be
included to substantiate your projections.
3. Detailed
competitor research
Everyone has
competitors, even for a one-person home based company. Even if you
are in the rare position of addressing a brand new market where no
competition exists, your readers will still have questions about
companies they suspect may be competitors.
To run a company effectively, you have to know
your competition and respect them. Develop a list of
competitors by talking to customers and suppliers, checking with
industry groups and reading trade journals.
4. A strong management team
Organization and management
is an extremely important section of every business plan. People
are, after all, a company's most important asset in many cases. Be
sure that you have identified the key skills that are needed, and
that you have first-rate players covering these fields. If you have holes in your
ability in your management team, start lining up people ready to
come on when financing comes in, and include them in your plan. Include
a short description of their background, with the more detailed
resumes in the appendix.
5. Proof
of forethought in every category
You must show that this really is a plan for running your business. Demonstrate
that you know how to sell and distribute your product, demonstrate that you have
thought through the hiring needs that come with growth, and demonstrate that you
have thought about the kind of company you want to grow, and how the investor
fits in.
6.
An
executive summary
Your
Executive Summary must capture the entire essence of your business in 1-3
pages. Start
with a simple statement of what the company is seeking and continue with a
clear, upper-level description of your market, management, and product or
service. Devote considerable amount of time preparing this section;
this may be the only part other readers will read.
7.
Excellent
formatting
Make
your plan inviting to read -- leave white space on the pages, use reasonably
large type, write in short paragraphs, and use bullet points whenever
applicable. You have five minutes or less to interest the average
capital provider, and if he or she cannot immediately understand your plan,
the prospective investor will pass it over.
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