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How To Create A Killer Equity Crowdfunding Pitch - Step 8: Your Business Plan
“Takin’ Care Of Business…”
The eighth in a ten-part series which addresses the steps you need to take in order to create an eye-catching equity crowdfunding campaign on GrowthFunders. You can find out more about the coming posts at the end of this one.
What is a business plan?
A business plan outlines your goals, the reasons you believe them to be attainable, and how you intend to reach them. It serves to communicate your business model to potential investors.
A good business plan will contain the following information:
This is usually a two-page summary of the business plan, written for efficiency and clarity. If a potential investor wants to know your business in two minutes, this should be the document that delivers.
An introduction to your business which highlights the type or model you will follow. You should also include the proposed location(s) of your company and the product / services you will offer to customers.
This is the place to describe your business’ Unique Selling Point (USP) and strong Value Proposition. A Value Proposition is a statement, usually containing facts and figures as evidence, which describes what you aim to deliver to the customer and what they will get from using your product or service.
A business model is the method you intend to use in order to acquire, service, and retain customers and example include: Franchise Model, Low Cost Model, Advertising Model, Subscription, and Direct Sales.
This should be an ongoing process. The initial results you gathered in the early stages of your business may no longer be relevant. Identifying your target market early on is vital, but you do have to stay up-to-date with changing trends and audience views.
Market research serves to produce your SWOT (Strengths, Weaknesses, Opportunities, Threats) matrix. For this, you need to consider whether your business objective is attainable. If it turns out not to be, then you’ll need to find a new objective.
Analysing the internal (strengths / weaknesses) and external (opportunities / threats) factors which impact upon your business means that you can adopt and adapt, where necessary, to build the strongest business you can. This is an invaluable piece of information and can be used to inform iterations at regular stages of your business’ growth.
In this section you should outline everything relating to the operation of your business. This includes manufacturing and production information, your inventory and stock projections, the facilities you use (as well as their maintenance), and the distribution of your product and/or service. Give potential investors full sight of how you (intend to) operate, especially in the start up and early stages of your business.
State the amount of capital you are looking to raise. Include a financial forecast and cash-flow projections, as well as statements (income and balance sheets) you have.
Project Management Plan
Here, you will need to outline the structure of your organisation, including gaps. Describe the experience and sector skills of the people already on your team, as well as any missing staff requirements; skills you are still looking for and any intentions you have to hire. Key project milestones are also worth mentioning in this section. Showcase your achievements whenever you get the chance.
Marketing plans are touched on in the Revenue Plan blog. Investors want to know what strategies and channels you (intend to) use, as well as your budget. The correct advertising of your business is imperative to its success. Again, this is somewhere you can showcase any marketing milestones you may have reached, such as your amount of twitter followers or subscribers to your blog.
GrowthFunders: getting you started
If you’re looking to raise growth capital for your business, you’ll no doubt already know how difficult it can be. Spending time away from your business, travelling up and down the country to meet face-to-face with potential investors, can often be time-consuming and ultimately fruitless.
Finding the right platform from which to pitch to many investors, all at once, is a great solution. GrowthFunders, the online equity-crowdfunding and co-investment platform, is the right one. Now, what do you need in order to make your pitch the best it can be?
This is the eighth in a ten-part blog series “Create A Killer Pitch”, which addresses the steps needed to create an eye-catching campaign on GrowthFunders. Simply click on the list below to read previous entries in this series: