Investor business plans that have an excessive amount of operational detail are less likely to get read by investors despite what many entrepreneurs think. When raising capital your investor business plan is not as critical as you might think nonetheless it is still vitally important for your overall business success. Many investors will not read beyond the executive summary if it doesn’t grab them. In assessing between 10-30 businesses per month, investors and venture capitalists have to be ruthless and can’t just waste their time reading every proposal hoping that a more exciting proposition is going to come along at the end. Importantly the investor will draw conclusions from various facets of the proposition, such as the background of the management team to ascertain whether it is necessary to check out every last word written within the business plan.
The the message in the story – make the executive summary correct.
The exec summary is a 2 to 5 page synopsis of the fundamental details in your investor business plan.
Generally speaking an investor will evaluate the executive summary and determine whether or not the business model and this investment really makes sense, whether management look like they know what they are doing, and has been carefully thought through. Is this business reasonably going to exploit the mentioned opportunity? They’ll also want to conclude that the timing in the venture is correct – not too late & not too early. Cosmetically, the plan generally must be clear, succinct where it ought to be and broken down where suitable.
Keep in mind the company idea doesn’t have to become a paradigm shift, simple could be best and so where it is not don’t allow it to be any much more complex than it has to become.
To arrive on the above conclusions, a excellent executive summary would include the following – and this is as much a information for what a great proposition appears like as what should be included in the executive summary:
The particular issue should be stated clearly, how large the problem is and that this issue is fitting for a business answer – following all not all problems within the planet should attract a company answer.
If all these points were integrated within the business plan executive summary, presented clearly and concisely and made logical sense, an entrepreneur ought to expect strong results, subject of course to the right numbers dropping out and matching the investors expectations.
Visit the Venture Capital Centre at www.VentureCapitalCentre.com.au for information and resources on Business Plan Venture Capital Source
Additional Links:
Angel Investor Business Plan Executive Summary
Raising Capital For Your Organisation
Writing An Effective Venture Capital Business Plan
Understanding Venture Capital And Private Equity
