What Do Investors Want in A Professional Business Plan?

What do investors want to see in a business plan? from The StartupGarage
Share This

Welcome to video Fridays from The Start Up Garage


A place where Tyler Jensen, The Startup Garage’s founder, answers questions directly from our viewers.

Key Take Aways From Video:

1. Investors want to see a clean, professional looking, honest, and reasonable assessment of the business.

2. Investor wantwell-sourced research sections, which include the market, industry, and competitive analysis.

3. Investors want an exceptional product description that explains all the features and benefits of the product or service you’re going to be selling.

4. Investors want a reasonable sales, marketing, and operational plan and budget.

5. Investors want 5-year financial projections.

Overall, investors are sophisticated and smart, this isn’t a traditional sales document.

Complete transcript below:

“What do investors want to see in a professional business plan?”

Great question Jen, overall investors really just want to see a clean, professional looking, honest, and reasonable assessment of the business. They want clear, well-sourced research sections. So this includes the market, industry, and competitive analysis. These really need to be cited with trusted sources, so add footnotes in there as well.

The next thing you want is a really good product description that explains why all the features and benefits of the product or service you’re going to be selling. Then they’re going to want a reasonable sales, marketing, and operational plan and budget — so you just need to be reasonable in these expectations of what you’re really going to be able to achieve in terms of growth.

And then they’re going to want to see a well thought out 5-year financial projections. These include balance sheet, cash flow, and profit/loss along with all the assumptions that go into making those up.

So overall investors are sophisticated and smart. So this isn’t a traditional sales document — you don’t want to make it too “salesy”. They want to see something that is just reasonable and honest — and I think you’re going to get a lot further with investors than something that is hyperbolic and exaggerated

Whether you have a question about your business plan or you’d like to discuss our business plan writing services, feel free to contact us for a free consultation!
This entry was posted in Business Planning, Startup Funding and tagged , , , , , , on by .

About Tyler Jensen

I work with entrepreneurs who are looking to attract investment and get out of the "Garage". I am passionate about helping entrepreneurs start companies that matter. I helped launch over 100 Companies, Non-Profits and Social Enterprises. I consider myself a serial entrepreneur, startup coach & trusted advisor. * Launching New Companies (For Profit, Non-Profit and Social Enterprise) * Expert Business Plan Writer * Extensive Network of Business Relationships focused on Launch & Rapid Growth of New Companies * Startup, Growth, Marketing, Technology, Web, Business Systems * Trusted Advisor to CEO’s & Entrepreneurs * Capital Raising Strategy Development * Startup Team Development The first company I started and sold is VAVi Sport & Social Club which grew to over 25,000 members in six years, was recognized as San Diego’s 30th fastest growing private company in 2006 by the San Diego Business Journal and 32nd fastest in 2007, and sold for over 25X the capital investment.