Have you ever heard of the word business plan? It is a comprehensive document that outlines the mission of the company, its goals, finance, revenue, and market data. Then what is its purpose? It serves as an aid to convenience investors in loaning money, but there are other benefits. It helps create accountability within an organization, offers a holistic view of the company, and can be used as a frame of reference.
Based on the work of assisting companies with financing and fundraising, this blog has compiled the points that are mentioned in the focused business plan to attract investors to share their amounts. So let’s get started.
Things that are found in a focused business plan
Strong executive summary
A Dubai’s focused business plan includes an executive summary. This is the first portion of a plan and should be captivating enough to give a solid first impression.
You can think of this summary as your website landing page. When visitors come to your website and are unable to find things they were looking for, they will move on to the next best available option.
Therefore, this content should introduce the company and explain what is your work that makes you unique from others. This will provide the investors with a complete overview of your business. You should also conclude the key details in other business plan sections. Keep in mind that the length of this section is one page and should be written at the end.
So how can be write an executive summary like one of Dubai? So begin with introducing yourself followed by an explanation of why the business matters and ways you will fill in the gap. Also, include the solutions to a particular problem. If you feel that you need help in this area, don’t hesitate to contact a business planner. Their expertise will benefit you in some way or other.
A complete financial forecast
A focused business plan is designed in a way that if there are no sales or you are generating revenue in the hundreds of thousands, every investor will examine your plan. Therefore, the plan needs to be fully fleshed out without leaving any grey room or area for further questions.
Additionally, when designing a plan, put yourself in the shoes of an investor. Ask yourself questions based on your financial outlook, if you categorize yourself as a risky or promising investment. Remember to add these elements to your financial forecast:
Profit and loss statement: Highlight the revenue that you are generating and the profit that you will make through those sales.
Break-down analysis: A detail of the inventor of products you will need to sell to cover fixed and variable production costs.
A balanced sheet: An estimate of total assets and liabilities.
Cash flow statement: A detail sheet projecting all cash inflows and outflows.
Business Ratios: A calculation illustrating the relationship between items.
So, how to write a financial forecast? You must include your market shares. Begin from the bottom by highlighting the total addressable market and the targeting percentage. Then, you can go in-depth by outlining the segmented addressable market and the shares.
The acquisition cost of customers
Investors are always interested in knowing the cost that is acquired to attract new customers.
Focused business plans have a clear understanding of the customer acquisition costs (CAC). This helps them grow healthy and scalable and shows investors that they know the technique to get a customer on board.
What is the importance of CAC? It is something more important than anything. As its demand has increased over the years. Its cost is determined by examining the total cost of sales and marketing necessary to acquire new customers. The CAC also helps simplify the decision-making process, optimize marketing strategies with a focus on customer lifetime value, and paint a complete picture of the payback period.
Strong execution
A business plan is like an image. The old quotation states that an image is worth a thousand words.
In the same way, a business plan with a focus on attracting investors reveals much about you who are as a business owner. For instance, you have strong sales and an optimistic financial forecast. So is your business plan missing the necessary documentation? Are there any grammatical errors or improper formatting?
Execution tells everything. How you communicate your business and its mission. This is as important as the details within the plan. A business plan written in a hurry with ambiguity will result in more questions and hesitance.
The financial ask-and-answer
There are two crucial questions in this section: how much money you are demanding, and what will you do with it? The investment you are seeking should be clear in your business plan. Your intention to use the money should also be clear and logical. The focused business plan fulfills all these criteria.
If you are deciding to design your plan, it is essential that your investors need to know that you will be responsibly spending their money. You should be able to prove that the money spent will result in revenue growth. Every penny should be allocated to a specific destination for goodwill.
FAQs
What elements should be found in a plan that can attract investors?
When you are creating a detailed business plan, make sure you have defined your business goals and objectives, researched the industry in which you are interested, and described your product or services. Create a marketing plan outlining your financial projections, and describe your team. In this way, the investors will take notice of investing in your business.
Why do investors feel at ease in investing in Dubai?
The policies of the government for providing a business-forward outlook and low-risk environment make Dubai an ideal place to invest and set up a business. Moreover, this place offers unique opportunities due to a favorable tax regime and legal, and regulatory framework setting its ground open for all sorts of business investors.
What are the mistakes often made by investors?
Some of the common investor mistakes include not conducting enough research, reacting emotionally, having a dissatisfying portfolio, having zero investment goals, having no understanding of risk tolerance with viewing short-term returns, and not paying attention to fees.
What is the element of interest for investors?
Investors are interested in knowing if the information indicates the current financial status of the business. Usually, they ask for current reports like reports on profits and losses along with cash flow statements that project the revenue of past months or years. This helps them in making a decision.
The bottom line
Investors are so essential for your business that they can either break or make your brand. Therefore, they should be taken seriously. Don’t rush when designing a business plan.
Take time and pay attention to every detail of the aspects of the business plan. Go through the Dubai-focused business plan. If you feel the need, consult a business plan writer and ensure that you communicate the message effectively.