Excellent business plans will certainly be "dynamic"

A venture capital manager once described the business plan he saw in a month as follows: half of the 100 business plans will be eliminated during the first review; after several hours of more careful evaluation, 25 were rejected. After more in-depth analysis, about 10 of the remaining plans were not as required.
Of the first 100 candidates, only a few companies have plans that can enter a relatively in-depth analysis and evaluation phase, and can successfully negotiate the contract conditions, in the end, fewer companies will be invested. This shows how important it is to look for venture capital companies to prepare an excellent business plan.
So how did a good business plan come out?

Clarify six things
"There are three VC investment standards: will the future market be large enough? Is there growth? Is the business model of an enterprise feasible, or some have been proved feasible? Is the company's team excellent, and the execution is not strong enough ?" Fang Chuang capital partner Wu Minghua gave VC the basic standards for an investment project. Therefore, in a sense, a business plan is written materials that meet VC investment standards. However, how to write a business plan has its own standard format and content.
Wu Minghua believes that writing a complete business plan requires a clear description of the six aspects, namely, the company's current situation or profile, business model, market scale and strategy, competition and barriers, teams and financial plans. "These six problems are mandatory in the Business Plan. Investors are most concerned with the business model, market scale and strategy, and the team and finance plans, these four pieces of content require entrepreneurs to focus on analysis and description in the plan."
Business models are at the core of project success or failure and are also the most important concern of investors. In the plan, the business model mainly describes how your company makes money, including who you provide products or services, and what the main content of your products or services is, how do you collect money and how your products or services are made and provided. "It is better to make this part simple and clear, so that everyone can see how you make money ."
In addition, investors are very concerned about the future development potential of the project, that is, the market scale and strategy. This part mainly includes the total market amount of the products or services you provide and the market share of your target. This part is to let investors know how much market your company is in, and what means you use to occupy these markets. In this way, investors will be able to understand whether the market can cultivate a company that can make an IPO in the public market.
The Team has always been one of the most important factors for investors. Many VC companies don't even look at the project but chase people to invest. This shows how important the entrepreneurial team and individual are. This step mainly includes the current shareholder resume and background, the operating management record and background, the current division of labor and incentive mechanisms of the Team, as well as internal decision-making mechanisms and other internal control systems. "VC is intended for both cast and re-cast, so we are most concerned about the team. The reason is that as long as the team is good, models, markets, and profits can be created, therefore, the most important part of enterprise financing is the team, and the most important part of investors is the team." Wu Minghua stressed that.
For investors, the last thing they care about is how much money they need and how to return, that is, the financial plan for financing. This section is more professional, and many entrepreneurs have lost in it. Some entrepreneurs do not know how they should spend their money, how they can achieve their goals after spending their money, how investors can exit, and the return on their withdrawal. "If you do not know the source and source of these data, your enterprise value cannot be evaluated. However, if you get the funds and give the VC equity, there is no way to prove whether it is reasonable, therefore, finance is very important." Wu Minghua warned that entrepreneurs often want to consult professional companies to write this relatively professional and complex content with their help.

You can't just stand on your own.
Many entrepreneurs think that the Business Plan is written to investors. Therefore, they always want to impress each other. The design of content and forms to the loading model is very exquisite. As a partner of Venture Capital agencies, a major part of Wu Minghua's job is to review a large number of business plans, and then recommend enterprises with clear and accurate expressions and potential to venture capital institutions, therefore, he has many opinions different from those of entrepreneurs. "A business plan is not only written to investors, but must first reflect the real situation. A good business plan is a true reflection of your or your future plans, instead of fooling investors with the superficial beauty."
Based on this general argument, Wu Minghua believes that the commercial plan should be an argument to prove the "worth investing" argument. "A business plan is about 'story'. Its purpose is to persuade investors that my plan is feasible and that my project is worth investing. Therefore, there must be a lot of arguments in the Business Plan to explain the 'investment worthy 'argument ."
"How to exit is a top concern for investors ." Many people only want to get the money from investors, instead of thinking about how investors should exit, and how entrepreneurs can protect the interests of investors in the enterprise operation process. With this in mind, the business plan will receive a higher score. This part is not good for many entrepreneurs.
Business confidentiality is also an issue that needs to be considered in writing business plans. This involves the fact that their business ideas are not cloned by venture capital institutions into other fields. "In fact, the confidentiality of business plans is a pseudo proposition. Combined with China's national conditions, we can say that commercial ideas are not valuable at present. Only the ideas made can be recognized by everyone ." However, do not write business plans too thick and there are reasons for confidentiality. Entrepreneurs should carefully check the business plans before submitting them, will this investor disclose your plan to the investors of your competitors or competitors, and then try to write the Business Plan as simple and clear as possible to protect your trade secrets more. Of course, the confidentiality statement on the plan is also necessary.
Many entrepreneurs think that once the business plan is written, it will not need to be changed. Wu Minghua thinks this is wrong. "The business plan three months ago and three months later must be different ." Because the market and environment are changing at any time, the idea of entrepreneurs is also changing, and the shortcomings and shortcomings that entrepreneurs know after talking with investors are also prompting them to modify their plans, therefore, a business plan is also a dynamic thing. In the process of changes, new market data needs to be constantly added and new elements need to be added. Such a business plan can attract more attention from investors, it is very important for entrepreneurs to make their plans "dynamic.
However, in Wu Minghua's view, the final business plan is not the most important. "Tree dead, people move lives, business plans are just a carrier for entrepreneurs to think about, and only a team is the soul of the plan. So many times, if you submit a plan, it doesn't mean that financing is almost the same, communication and constant negotiation are the most reliable guarantee for your financial support."

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score reduction factor of a business plan
multiple requirements: the business plan does not require more than 20 pages. The more it is, the better it is. In many cases, it is easy to understand. It can also show that you have a strong foundation and grasp the key points.
there are too many blank talk: many entrepreneurs begin with a business plan, which begins with a story about the macro economy and the world. Otherwise, let's not underestimate the wisdom of investors. If they can invest in you, they must be familiar with your industry. Therefore, you don't need to do basic education training in the market and directly enter the topic, it is simple and clear, but it gives a better description of the problem.
dull and not vivid: a business plan requires numbers and charts, rather than a novel. Novels can be written in a dense manner, but the business plan requires simplicity and clarity. The most taboo thing is that the writing is too formal and full of words. It is the best form to express it with pictures and numbers.
CEO closed doors: the business plan should be written by all the company's teams. A good business plan should never be built by the CEO alone, it should be the result of the entire team's discussion and communication. Division of labor and collaboration are always the embodiment of the highest efficiency, and team discussions will also reduce the overall risks of enterprises.
business plan plus factors
How to exit is a top concern for investors. Many entrepreneurs only want to get the money from investors, instead of having to think about how investors should exit, and how entrepreneurs can protect the interests of investors in the enterprise operation process. With this in mind, the business plan will receive a higher score.
the market and environment are changing at any time, and the ideas of entrepreneurs are also changing. The shortcomings and shortcomings that entrepreneurs know after talking with investors are also prompting them to modify their plans, therefore, the Business Plan must be dynamic and new elements are constantly added, which will attract more attention from investors.