What Is A Business Plan Template
What is a Business Plan Template and how can it help you? Estimations are critical for any venture. They provide direction for the management team drawing up their roadmap to success. They provide the nuts and bolts of how to get from Point A to Point B. Without good estimates, no one knows where they’re headed. This includes investors, banks, brokerage firms, venture capitalists, business planning firms, and anyone else with money or influence who might one day be interested in funding, buying, or conducting your business.
Investors want to see a well-developed and organized financial model. They also want to know how you plan to pay your creditors, so they can provide you with the necessary funding sources. Key questions to ask when preparing a business plan include: What will all of this cost me? What is the best way to present this information to potential investors? And Who should I approach and talk to about this?
Most entrepreneurs do not engage the services of an attorney when writing a business plan or accompanying an executive summary for investors. But don’t let that stop you! There are some very important issues to address in your documents, and you may need an attorney to go over them in detail if you’re representing yourself. Most equity investors want to see, read, and understand the complete plan, not just the sections relating to capital raising. And your attorney will have the experience and knowledge to help you develop it into a model that satisfies both those needs.
The reality is most angel investors, for the most part, have no interest in actually buying a company. Their investment is typically in a startup personal loan with which they guarantee a fixed interest rate. As long as that loan is repaid, they keep getting paid. That’s why you need a full-term business plan in place before you ever speak to them. If you can demonstrate in your documents that you have the financial wherewithal to repay that loan, and that you plan to repay it on a regular basis without seeking additional financing, then those investors will likely be very interested in seeing what you have developed – provided, of course, that it is well presented and does not convey a sense that you are in early stages of development.
While an attorney does provide an invaluable service in presenting the business plan to prospective venture holders, he or she should be used only in the context of what is most needed to “sell” the business plan to outside funding sources. For example, you might want to add a term business plan to your presentation in order to illustrate how the company plans to utilize any equity or debt raised to expand. If you do not convey that point clearly, then you run the risk of investors investing money in a business that has no chance of becoming successful.
This brings us to the next requirement for writing simple business plans: the need to “show the money.” In other words, in order to “sell” the business plans to outside funding sources, you must prove that you have the financial capacity to repay any loans or equity offered. In order to do this, you must make detailed financial projections of the revenue that will result from the offering. If you are offering equity or loans to a third party, then you must provide a complete breakdown of exactly how the money will be used and when it will be repaid. For example, if you are offering a syndicate of investors a total of $200k in capital, then you must present a line of credit proposal that clearly explains how and when that money will be repaid.
The third requirement of a well-written business plan template is to focus on answering three simple but critical questions. These questions are as follows: “What is the risk? What are the rewards?” And “How will the financial projections affect my business plan?”
In conclusion, a business plan template is really nothing more than a collection of simple business plans designed to raise funding. The key is to find one that is simple enough to create, easy to read, and focuses on the three critical questions. This will help you not only to write effective and efficient business plans but also to raise the most capital funds possible. To learn more about how you can use a business plan template to raise the capital you need, visit the website mentioned below.