How to use your business plan to excite investors about your startup

If you want to get potential investors excited about your company, here are some business plan basics to try and what to avoid.

Certain business plans stand out more than others to investors. You want yours to be one that excites them. That excitement can quickly translate into the funding you need to launch your startup .

Consider these strategies to improve your business plan and increase enthusiasm among target investors .

Real world use cases

Every investor looks for some tangible evidence of a return should they make an investment. You can create hypothetical use cases that illustrate how your product or service can solve a specific problem. And investors may be interested or still unsure.

A real world example of that same product or service being used by members of a specific audience to alleviate that pain point noted in your business plan will have a much greater impact. As part of this real-world use case, it’s also helpful to have direct quotes from these users explaining how your product or service has addressed their problems.

The business plan package

Although investors want specific proof that your business idea is relevant, compelling, and sustainable, you can also generate buzz through your template and format. It’s all about having a vivid visual presentation that can make it easy for investors to connect the idea of ​​credible performance with your product or service.

Some visual business plan package ideas include creating a video business presentation that includes a product demo, customer testimonials, and footage of the product or service in use. Another useful visual business plan template is an infographic that allows you to present quantitative evidence in an easy-to-read format.

Deviations from business plans

However, there are also some common mistakes in business plan development that should be avoided. Here are some of the worst.

1. Inflate your idea

Don’t turn your business idea into something other than just hoping to attract investors. As seasoned business leaders, these investors often know what works and what doesn’t.

Trying to inflate what your product or service can offer will only turn them off and potentially create a bad name for you in what is often a narrow investment community.

Instead, do this: Use practical, real-world numbers to hook investors when you describe the market opportunity you’re addressing.

2. Keeping it vague

Although it can be difficult to measure quantitative results around time, customer engagement, target audience, breakeven, and profitability, no investor wants to invest in a business with imprecise goals, timing, or financials.

Business plan generalizations can also show investors that you haven’t done your homework in terms of in-depth market research. So there could be unforeseen challenges or untapped opportunities that investors know about but you don’t. This can make them suspicious about your business idea, your ability to lead and grow a business, and therefore about the potential return.

Instead, do this: Clearly lay out timelines that lay out specific financial and customer acquisition goals somewhere in the presentation.

3. Having too many priorities and tactics

It is commendable to be excited about what you want to achieve. But you also have to be realistic. Again, if you’re tapping into investors who are more experienced than you, they’ll likely be able to assess the feasibility of your priority list fairly quickly.

Instead, do this: Before investors see a business plan with more than 10 priorities or 20 tactics you plan to pursue, cut down the list. Have a few key elements aligned with your business idea’s overall ability to solve a specific problem.

4. Write in the void

Even if you do as much research as possible and revise your business plan after careful thought, it only reflects your opinion and vision. By not putting your business plan before a second set of eyes, you can miss out on important information that should be in your business plan.

Instead, do this: Go beyond your own tunnel vision and get outside feedback and advice from a mentor, peers, or business advisor. They often see what you can’t because you are too close to the business idea and plan to spot it. Also, conduct a survey of your target audience to learn more about them, their issues, and the market.

5. Boring the investor so that he is not interested

In your attempt to cover everything you think is vital to promoting your business idea, your business plan could begin to rival War and Peace in length. The result: anyone who reads it could quickly become bored due to information overload.

Instead, do this: Do a substantial edit to remove superfluous content.

Avoid mistakes in the business plan

Through examples of tangible business use and a carefully crafted business plan format, you can avoid the aforementioned business plan mistakes. It will also generate greater enthusiasm in your target investor audience. They will be able to better visualize and interact with your business idea and its potential.