Chanel, Business plans are a road map for any bank, investor or funding body to see how much you understand your business and how focused you are on your revenue streams but it doesn’t always show your skills, talent or business character, which is essentially what any investor wants to see. They invest in people, not businesses.
Here are some keys factor to ensure that you are in with the best chance of retaining some startup capital to get your venture of the ground:
Show off your market knowledge or expertise: Investors want to believe in someone who knows the market, and can even teach them a thing or two about the business industry you are interested in. Share the knowledge you gained from working at the local hairdressers, cafe or law firm. Show them how you were involved in predicting trends, that you can forecast for the future and understand which direction your industry is going in. Then demonstrate how you will lead your business in that direction.
Strike deals before you have the money to: Don’t wait until you have the money to start striking deals. Get customers for your products and service, then go to the investors or the bank and ask for bridging finance. This is money given based on the fact that you have orders. It shows them that there is an actual demand for your business and gives them immediate confidence in you.
Work full time and do your business: Anyone who can manage to work full time and do a business full time for at least the first 12months is a champion and will garner immediate respect for any investor. This shows them that you are committed, supremely organized and has the staying power. So many people want to be lazy and think “I’ll work hard when it’s my own business”. The key is to demonstrate that you can work hard for your existing employer and do their job before you embark on starting your own business, where you will be expected to delegate, manage people, lead and drive the economy of the business.