What does raising capital
mean? It’s would be a dream come true for an entrepreneur to get their idea or business
funded. It is very important for a founder to come up with a realistic plan
that can show growth with numbers that add up. Solid plans that can be
profitable and other investors would be interested in buying.
In our generation someone will
tell you that one does not need a business plan, all you need is a business
model canvas and a pitch deck to explain your business, i agree with this kind of
thinking cos a business plan takes a lot of time to prepare and 60% of your
assumptions will change by the time you start implementation but a bank or an
investor will probably ask for it anyway. It’s Old school but helps them know
about your business and decide whether to invest. It should be very clear, straight to the
point, bring the essence of the brand you want to create, avoid business jargon
(Tell like a story), it’s good to test it on your friends or your mum- see if
they understand and if they are excited.
There are no rules of thumb
when writing a good plan but i have listed are a few points that can guide you.
Purpose and Vision.
What is the main reason to
explain your business existence? In these we are referring to what is the
problem in the world that you are trying to solve. How big or serious is it?
What is your big dream? What
do you want the business to become when it grows up?
Team.
Who are you? Who is on your
team? What experience do they bring on the table? Here is where the insanity
check is performed, how crazy are you about the business, what makes you think
you are the right team to make this business work? What are you good at.
Proposition.
What product are you building,
who is for, what’s different and unique about it. What made you come up with
this idea and what makes you think no one is else is not going to come up with
the same idea, in other words what’s your unfair advantage over anyone else.
Opportunity.
How big is the opportunity you
are offering, do you know your main competition. Why should people choose your
product over the competition?
Plans.
How will you develop, make,
market and sell your product. This is the most important part where you have to
be come up with a Smart plan, S- specific, M-measurable, A- attainable, R-
realistic and T- timely, goals and projections.
Numbers.
How much does it cost to make,
how much do you sell at and what are the profit margins. Have you sold any? How
much money have you invested so far? How big do you think you can grow?
Investment.
How much investment do you
want and how will you spend it. How and when will you achieve
profitability? When & what the exit
strategy
Please note that this is not
the perfect plan but a simple guide to help you come up with a checklist of
what is expected.
One thing i have always held
true it’s possible to always keep going to make your business come true whether
you are funded or not, a handsome cheque from an investor may not
guarantee success of your venture, it
all boils down to you, how passionate and driven are you.
Tags:
Business