If You Build It, Investors Will Come

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As you start writing your business plan, or a section of it, you’re probably asking yourself, “What do you want me to talk about?” What key points should I highlight that are important to potential investors? What is the best way to answer these questions? ” It puts your business plan to the test. Right. Treat your potential investors as a jury and yourself as a defender.

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You must prove to the jury beyond a doubt why they should invest in your business plan. It’s about life or death sentence for your company. Your job is to collect and present all the evidence. In a way, the jury believes you. However, if you look at how most entrepreneurs create their business plans, they don’t build a case at all. All your competitors say
just to say they have a business plan.

A Typical Business Plan Isn’t an Argument Take, for example, a business plan for a franchised auto repair shop. A typical business plan for this business would include statements such as: nobody does what we do, we offer convenient hours of operation for our customers, we use quality parts, we have friendly, professional technicians, we are experienced, and we will attract many investors out of money. Does that build a case? Let me put this question differently.

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If you were interested in investing in a company, would these types of statements convince you that this company is the obvious investment choice for you? I do not think so. There are no real claims. different or better than any other business. There is no compelling reason for investors to believe that they will make more money investing in this business than other investment alternatives.

The only hope a business plan with such flimsy arguments has for attracting investors is outright luck. Imagine what it would be like if an attorney argued a court case as badly as most business plans. Take Martha Stewart’s obstruction of justice trial. Stewart and his stockbroker, Peter Bacanovic, told the U.

Securities and Exchange Commission and federal attorneys that she sold her ImClone stock on December 27, 2001. They claimed they sold the shares because the two agreed to sell the shares if the price fell below $60 per share. Prosecutors argued the story was a lie. In the end, the jury agreed with the prosecution. But why?

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Maratha’s lawyers could not prove his innocence sufficiently. They said, “Come on… Maratha wouldn’t have done that! She is the local diva! She would never risk her fortune for such a small amount.” …

Absolutely not! As simple and ridiculous as it sounds, it’s as good an argument as most business plans to attract investors to your company.