Business Plan Venture Capital
Venture capital companies are primarily interested in companies with great success potential. If you only have a small niche with your product / service, you have to make sure that the search for suitable venture capital donors makes sense at all.
In the context of a business plan, which is intended to convince venture capital companies, the potential of the business idea should therefore be adequately described. How big is the target group? Which markets can be developed? Is an international approach feasible? What sales are achievable? All of these are questions that interest venture capital providers. It is also important to inspire the responsible parties, whether you or your company team. A common view among VC providers is that almost every idea can be successful if the entrepreneurs bring the right attributes such as ambition, assertiveness, diligence (24/7 mentality), etc. For this reason, the business type or entrepreneurial team section in the business plan should cover several pages (see business plan organizational structure).
As venture capital companies usually see a huge amount of applications and business plans, your business plan should also stand out visually, at the first impression. It is advisable to consider a fancy presentation, a special design (for example, in a business plan folder).
If you would like to be supported in the development of a venture capital-oriented and professional business plan or would like to have your business plan developed by a professional, simply contact us and let us make an individualized offer.
This content should include the VC business plan
In your business plan, you will illustrate your business ideas and their viable implementation to your potential sponsors. Your business plan should have a clear and orderly structure (see business plan table of content). It should be possible for the readers of your business plan to get an accurate overview of how well thought-out and mature your business idea is in a short time. A disordered or incomplete business plan suggests to potential investors that there are still many unexplained areas to address before the business idea could be successfully put into practice.
For this reason, it is so important that the business plan has an appealing appearance at first glance and then attracts the attention of its readers as soon as possible. A well-structured table of contents with well-thought out headings can help to arouse the interest of the reader. Based on the table of contents, the thorough and complete elaboration of the important information is shown. This gives the reader immediate access to the information that spontaneously attracts them most when they first look into the business plan. Nor can it be assumed that all readers scrutinize the business plan from front to back. Some readers also tend to jump around from one part to another. For this reason too, a carefully arranged table of contents is indispensable and gives a good first impression.
Since investors have very many business ideas presented in business plans and the time of the potential providers is narrow, your business plan should contain a summary. Your business idea and the essential content of the business plan should be briefly described here. This summary is very likely to determine whether or not your potential investor will deal with your business idea and business plan. For this reason, the summary should be elaborated very carefully and should arouse the reader’s curiosity. Therefore it is inevitable to know how to write a business plan for your individual business goals.
For example, according to the table of contents and the summary, your business plan could have the following structure:
- Your profile as an entrepreneur and/or the profile of your already existing company,
- Your business idea,
- The location and the location factors for the implementation of the business idea,
- Industry and market analyses, such as potential market share, analysis of competitors and others,
- Description of implementation into reality, production planning and the like,
- A target group analysis and appropriate marketing measures,
- The marketing measures should describe the introduction phase as well as further product phases,
- Description of your company organization, employee planning and more,
- Finance planning
- The financial plan should be very carefully elaborated: who are the lenders? What is the equity used? This section should include key performance indicators, such as return on investment, amortization calculations, break-even analyses, profitability calculations and more,
- Opportunities and risks of the business idea should be carefully weighed in final analyses.
This breakdown is only a possible example for your business plan. For more information see our advisor as well as our business plan sample. The exact elaboration depends on the business idea and the nature of the intended implementation into reality. Further information could also be of great interest to potential investors, such as whether specific rights, patents or licenses are needed, whether it is possible to receive state funding and additional information. The specific features associated with your business idea and your planned company should also be fully contained and listed in your business plan.
This is especially important for investors in your business plan
In addition to the thorough preparation of your business idea according to sustainability aspects, investors want to know with whom they are dealing and to whom they are entrusting their money. You will be very careful with your personal profile and company profile. It is important that your entrepreneur profile is a source of trust for a successful cooperation among investors. We at Businessplan.org offer years of experience in creating business plans for different industries, regions and objectives.
Investors are sometimes most interested in sound financial planning. They also want to make sure theirs is a worthwhile investment in the future, and they do not want to lose their money in unsuccessful companies. However, companies can only work successfully if their financial planning is on a solid footstep right from the start. Therefore, this area of your business plan should be developed very carefully and comprehensively. Careful financial planning gives investors confidence in the viability of the company.
Also the comments on your marketing and advertising measures are of great interest to the investors. With these remarks you show that you have not only developed an outstanding idea. They also show that you know exactly how to market this business idea profitably. By reaching your target audience and selling your products, your business can generate enough revenue to return the money to investors and make a profit for them.
Your business plan should have a convincing overall effect. It should be carefully prepared and executed. Since many parts of the business plan only arise in the course of time, it is important to ensure that it does not appear like a piece of work composed of many individual parts. After completing the business plan, it should leave a complete and well-rounded impression on a reader.
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