How credible is your business plan?
All too often, when writing a business plan, you get too wrapped up in your vision of the company’s unquestionable success and you fail to follow some simple rules that investors will punish you for. Top of that list for many is whether that business plan is credible and is therefore trustworthy enough for people to lend you money or invest in you. They need to believe in you. So, before getting started, and once finished, take the time to ask yourself these three questions that will determine how credible your business plan is.
- Have you properly identified the “need”?
It may well be that your product is the best around and would undeniably be practical and beneficial, but if you fail to properly study the market and lay out who would buy it, then no one is going to believe in your idea. Instead, you need to properly identify who your target market is and, most importantly, why they would want to buy your product. Use statistics from market research, as well as examples of people you’ve spoken to who said they like your idea and would be willing to buy it if available.
- Are YOU credible?
As the person running this company, they need to know that you are the right person for the job. So you need to properly highlight your past accomplishments that demonstrate how you will be able to deliver on your promises. Be sure to get across your specific skills and examples, that will help you succeed, as well as proof that you have an insatiable work ethic and will see things through to the end.
- Are your financials realistic?
Of course, investors want to see potential in what you have to offer, and you must be able to demonstrate how an influx of cash will lead to big future returns. But don’t fall into the common trap of over-promising and setting unrealistic targets. Any wise investor knows what to expect in term of return and will quickly lose interest in you if your financials are well over the top.
Take the time now to properly understand these three points and decide whether or not you have ticked each of these boxes when writing your business plan. If not, go back now and make some serious changes. This vital boost in credibility could be exactly the thing you need to help take your idea and turn it into something tangible. Once you have a credible business plan you need to work out a deliverability plan and how you can motivate your team work towards the same end goal. At St Andrew’s Consulting we can help with all of this. Get in touch with us to get on track with your business highway.
Image credit: Creamy center = sketch of business plan by juhansonin licensed under Creative commons 4