How to make a successful business plan

It is often said that the business plan (Business) is the "stepping stone" for start-up financing. As a large number of start-up enterprises to finance the growth of the necessary documents, its role as a pre-listed company's prospectus, is a financing company or project to make a statement and analysis, to facilitate the potential investors to conduct a comprehensive understanding of the investment object and preliminary examination of the text file. In recent years, the process of venture capital financing is becoming more and more standardized, as one of the official documents for project approval by investment companies, making business plan has become a "compulsory course" for entrepreneurs.

As a standard document, the business plan has a similar structure. However, some business plans can quickly seize the eyes of investors, and some plans can only enter the "Recycle Bin" as the end of the mission. Objectively speaking, the project's own quality is the most crucial and core reasons, but a perfect, professional form of expression is equally important, "The wine is not afraid of alley deep" logic in the fierce competition in modern business operation does not apply. A successful business plan covers the vast amount of information that potential investors need to know about a financing project, and focuses on the main points that investors typically focus on. Such a business plan can significantly reduce the amount of work that investors have to do before they enter due diligence, allowing them to move quickly into later real operations.

Different financing projects, due to the different nature of the project, different stages of the project and other factors, investors focus will be focused. Generally speaking, the project's market, product, management team, risk, project value and so on are the key points of the investor review project.

In the following, the author mainly aims at a perfect business plan book The essential Key and the entrepreneur in the Business plan writing frequently appears the question to carry on the specific explanation:

Executive Summary

This part is the first part of the investors ' reading, but the final part of the business plan writing, the enrichment of the whole business plan, aimed at arousing investors ' interest and the desire to further explore the details of the project. The length of the executive summary is usually 2-3 pages, and the content seeks to be concise, highlighting the company's investment highlights, especially as opposed to competitors ' eye-catching points. Generally, the net cash inflow, the broad customer base, the market rapid growth opportunities, the background of the rich team are likely to arouse investors interest in the bright spot.

Product and Service Introduction

This section is mainly about the company's existing products and services performance, technical characteristics, typical customers, profitability and other statements, as well as the future product development plan introduction. The most common flaw in our exposure to many business plans is that the introduction of product technology is too professional and uncommon, taking up too much space. In most cases, the author of the business plan is the entrepreneur itself, most of them are technical origin, for their own products and technology has a natural pride and closeness, so often into the "Can't Help" and "gushing" in the mood. Investors, on the other hand, are essentially businessmen who value profits and returns, and they are mostly economic or financial backgrounds and are not particularly adept at technical presentations. They are more in agreement with the market's response to the company's products. Therefore, it is recommended that in the product and service part only to clarify the company's product system, to the investors to show the integrity of the company's product line and sustainable development, and more text placed in the product profitability, typical customers, similar products and other content of the introduction.

Market and competition analysis

Unlike other financing methods, the excess income of venture capitalists comes from future growth. Therefore, investors are very attached to the future development of the market in which the project is in place. In the market competition part, we focus on the overall market development trend, market segment capacity, future growth estimates, the main impact factors. Competition analysis mainly includes the advantages and disadvantages of major competitors and its KSF analysis. Data on market capacity estimates and future growth forecasts are best derived from neutral third party surveys or research reports, avoiding self estimation. In the case of special markets, it is impossible to maintain an objective and impartial attitude in the estimation and to avoid the suspicion of "boasting".

Strategic planning and implementation plan

With high-quality products and good market opportunities, but also need a practical implementation plan to cooperate in order to ensure the final success. In this part of the content, we have to focus on the proof in order to achieve strategic goals in the personnel team, funds, resources, channels, cooperation in all aspects of the configuration. The implementation plan will be consistent with the other chapters in the proposal. For example, product planning and product services in the future research and development of the same, the fund allocation and capital use plan, staffing and human resources planning consistent.

Management Team Introduction

Liu Yu, president of the United States, said: "Just like to do the real estate position is the most important, do VC three elements is: People,people,people." "VCs are critical to the role of people in the overall project. A good plan can degenerate into a beautiful bubble without the ability to execute a strong team. For start-ups, the human factor is particularly important.

For the management team's description, in addition to the general introduction of the entire team's professional background, education level, age distribution, the most important is the core team experience. A stable and United core team can help enterprises through all kinds of difficulties, is the enterprise's most valuable resources. Moreover, the past experience of the core team directly affects the development path of the enterprise. As a result, team members ' successful entrepreneurial experiences are often a valuable bargaining chip for winning the investor's money.

Financial Forecasting and Financing program

In any investment, the financial situation that affects the evaluation of enterprise value is always the most concerned place for investors. Financial projections are a systematic process for quantifying all qualitative descriptions in a business plan. Many entrepreneurs are technically experts and outsiders to finance and finance. Therefore, often submitted is a rough data, the choice of arbitrary, forecasting the basis of unreasonable forecast data, difficult to obtain the recognition of investors. In addition to the help of internal finance staff and financial forecasting software, you can also try to seek the help of a professional consultant. The professional experience can guarantee the normative, reasonable and professional nature of the whole financial forecasting system. The rationality of financial forecast directly influences the design and choice of financing scheme, which is very important in direct negotiation with investors. Another area of great concern for investors is the fund-use plan after financing. Through the previous information to understand the gap and source of enterprise funds, investors most want to know is whether the enterprise has the ability to manage the money. A detailed and reasonable plan for the use of funds can be a good reduction of investor concerns.

Risk control

Although every business plan will make a good future plan for every aspect of the project, as a venture capitalist, he faces a project with too many uncertainties. The purpose of the Risk Analysis section is to demonstrate the potential risks and to present the risk avoidance measures to the investors. For investors, the risks are not scary, and the scary ones are those who are blindly optimistic about the risk or simply ignore the risk. Therefore, it is not advisable for many entrepreneurs to be "evasive" in this part of the risk.

Among the entrepreneurs, a very large proportion of people are technical origin, for financing this set of professional procedures always feel "smoke and mirrors." In the case of limited time and energy, it may be possible to try outsourcing, that is, to entrust a professional institution to make a business plan.