Tailoring Your Business Plan for Different Audiences: Investors, Banks and Partners
Learn how business plans are different for different types of target readers. From banks to investors to other important stakeholders, such as potential partners, landlords, key suppliers and more.
Business plans will change based on their target reader. In the complex dance of business, a business plan plays an important role for several end goals. A business plan is not just a skeletal framework of numbers and objectives—but rather it’s a narrative that is written to achieve a specific goal. Whether to get a business loan, secure an investor partner or get a government contract. Different stakeholders bring distinct priorities and concerns to the table. With our business plan writing services, the first step is to ensure the plan 100% matches the needs and expectations of your intended reader and is adapted to reach a specific objective.
Business Plans for Investors
At their core, investors are visionaries. They're looking to the horizon, discerning the potential for growth, and assessing the landscape for returns on their financial foray. Business plans written for investors should emphasise the following areas:
The Importance of the Team: A critical element of your business plan for investors is to provide a strong management description. Yes, they are investing in your idea, but your team will be the leading factor that determines its success, so spend special attention in this area. You should clearly highlight your industry experience, track record of success in terms of KPI’s, key industry insights or contacts you have, and more.
Highlight Market Potential: Delve into the expanse of your potential target market. What's the potential customer base across Canada? What about international markets? Can you present any emergent market trends or shifts that showcase a growing opportunity? With most investors, it’s important to showcase the scalability and market potential for your business.
Don’t Forget Exit Strategy: Unlike banks who look for your ability to repay your loan over its term, an investor is likely very interested in potential exit strategies. Show different options and timeframes for selling the company based on revenue projections, examples of other businesses in your industry that were bought out, etc.
Distinctive Competitive Edge: Beyond just stating what sets you apart, weave a narrative. Whether it's an unmatched team, a unique business model, or proprietary technology, it should be central in your pitch.
Don’t Make the Reader Work: While numbers are key, so is their presentation. While this may seem obvious, so many business plans hide important information behind dense tables or confusing charts. Don’t make the investor work. Instead, use clean, easy-to-read graphs, charts, and scenarios to best communicate the most important elements of your business. The reader should be able to skip through the plan and grasp the important elements effortlessly, then use detailed sections for deeper analysis. Paint a future that's not just lucrative but also tangible.
The Sky's the Limit: Investors generally are are looking to shoot for the stars, compared to the typical manager at your local bank. But be careful because if your lofty projections don’t look unattainable, you quickly lose credibility. Instead, create solid projection scenarios that are rooted in reality. This can be done by benchmarking against real industry performance or by creating multiple scenarios (worst to best case). It’s a delicate walk, but is vital that it’s done right when presenting to investors.
Make Use of Pitch Decks - The process of securing an investor is actually a sales process. There are introductory steps to build interest and delivery of a detailed business plan is typically the final step. Your pitch deck and business plan should match your investor presentation strategy. Are you cold calling potential investors? Does your investor first request a brief overview? Will you be pitching in-person? A pitch deck is a summarized version of your business plan, and best suited for presentations. You also may want to create multiple versions, for example a version that excludes confidential financial or proprietary information, that can be shared more widely without an NDA.
Business Plans to Secure a Bank Loan
Lenders are the pragmatists in the financial world. They're not purchasing a slice of your dream; they're providing the means to achieve it—with the clear expectation of timely repayment.
Spotlight on Cash Flow Projections: Dive into meticulous details. Monthly, quarterly, yearly revenue streams juxtaposed against operational costs provide assurance of your repayment capability. For example, daycare business plans should clearly show a healthy monthly profit at full child capacity.
Collateral Clarity: Are you offering assets as security for the loan? Detail them. From property to machinery, their valuation offers a safety net for lenders. Pay special attention to your opening balance sheet, as this summarizes how the financing will be allocated by asset category.
Historical Financial Health: If your business isn't a new venture, then past financial performance can be your advocate. Detail your financial journey, highlighting profitability, fiscal discipline, and resilience. This builds trust and reliability for your future potential ability to repay the business loan.
Business Plans for Partners or Collaborators
Partnerships are akin to corporate marriages. Whether these are future co-owners, collaborators, or suppliers, alignment is paramount.
Vision and Mission at Forefront: Your business’s "why" is the cornerstone. Illuminate your vision with clarity, allowing potential partners to gauge the alignment with their own objectives. You should both share the same goals around what the business is all about, and what revenue generating scale you hope to reach.
Operational Insight: Transparency is key. Unfold the day-to-day mechanics of your business. This not only builds trust but allows for the identification of collaboration touchpoints.
A Mutual Win: A partnership is a two-way street. Clearly demarcate the benefits accruing to both sides. This isn’t just about profit but value addition in terms of resources, network, and expertise.
OTHER BUSINESS PLAN AUDIENCES
Business Plans for Landlords
Most competitive retail locations will require a business plan before you can establish in that location. For these types of business plans it is important to highlight the following areas:
Showcase Brand Strength and Appeal: Competitive malls seek brands that enhance their reputation. Highlight your business's history, customer reviews, and any press or awards received.
Projected Foot Traffic Conversion & Sales: Offer data-driven projections of the foot traffic you expect to attract, and how it will influence overall sales. Use industry benchmarks and your past performance as reference points.
Detail Store Aesthetics & Design: Providing mock-ups or visuals of store layout and design can help decision-makers visualize your brand in their space. This allows them to see how you are a good fit for the retail space and shared customers with nearby tenants.
Business Plans for Government Contracts, Licensing & More
There are a multitude of government funding, licensing or agreements that require a business plan. For example, all car dealerships in Ontario need a business plan for their OMVIC business application. Business plans for these types of government requirements should focus on the following areas:
Demonstrate Compliance and Ethics: Governments prioritize reliable and ethical businesses. Emphasize your compliance with regulations, showcase any certifications, and highlight your organization’s efforts around inclusiveness, equality, accessibility and more.
Detail Experience with Similar Projects: If you've handled governmental or large-scale contracts before, detail them. This adds a layer of trust to your application.
Focus on Desired Outcomes: When it comes to government contracts, licenses or other applications, they clearly state the objectives they are seeking. These may be job creation, economic stimulation in the local region or other. The business plan should focus on these outcomes and objectives you will create.
Business Plan to secure Manufacturer Deals
Many manufacturers require a business plan before issuing specific selling terms with buyers. This may be the case in order to secure geographic/territory exclusivity and more. These types of plans should emphasize the following:
Present Sales & Distribution History: Manufacturers want assurance that granting you exclusive territory rights is a profitable venture. Showcase your sales history, distribution channels, and customer loyalty metrics.
Outline Marketing & Expansion Plans: Your roadmap for promoting the product and plans for scaling will be of prime interest. It assures manufacturers of your commitment and capability.
Detail Support Infrastructure: Highlight your customer support, after-sales service, and feedback mechanisms. This tells manufacturers that their brand will be well-represented and that customers will be cared for.
In Summary: You Need a Tailored Approach
As you can see, business plans vary widely based on their objectives. A business plan written to secure a business loan is not the same as one to land a government grant. These guidelines are just the starting point and quality business plan writing requires nuance and expertise. It’s essential to deliver the right combination of knowledge, persuasion, analysis and interest and package the plan professionally in a cohesive and compelling format.
Get an Edge with Professional Business Plan Writing Services
In addition to saving yourself an enormous amount of time, professional business plan writers bring industry insight and experience preparing plans for a wide range of different stakeholder types. By entrusting experts with this task, you're ensuring that the plan is professional grade but also gives you the highest chances for success.
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