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Tool #2: Top 5 tips for developing a Business Plan: is it investor ready?
transition
ireland west
A Business Plan is a key document in scaling a
business both in terms of giving thought as to
how the business will grow, develop and scale
as well as a tool to attract investment. See a
Business Plan template here at
http://www.enterprise-ireland.com/en/Start-a-Business-in-Ireland/Information-Store-for-Start-ups/#Busines
s Plans (this can be easily adapted for a social
enterprise).
The Business Plan should be 30 pages max
including financials. Other information can be
added as appendices.
The Business Plan is required so as to construct a project proposal which is investor
ready. Subsequently, a one page summary of
the plan is distributed to potential investors /
angels. Until the Business Plan meets the
required standard then it is not submitted to
the angels. We decide on whether it is up to
standard or not. It is a process that can take
time and often promoters can ‘fall by the wayside’ if they do not have the answers to the
questions posed or if they are not committed
to the process.
SOME KEY THINGS TO ADDRESS ARE:
• Demonstrate any sales to date or if sales
have not yet been achieved then note any
good results from beta testing, testimonials,
POs, etc. – this demonstrates a market ready
product and investors take an interest in this!
The pool of investors looking to invest in
pre-commercial proposals is small and so
sales, strong beta test results, testimonials,
etc. are vital. Angel funding is not a great
avenue for feasibility study / proof of concept
funding.
• As a small company, investors are concerned at how promoters will make an impact