TyroCity

Discussion on: Anchors looked by Potential Investors in a Business Plan

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ncitujjwal

As an aspiring entrepreneur, we always focus on how we can convince our investors, what they want, what benefits they get from there. So we should also clearly define there what benefits and it’s typed, he/she wants benefits in terms of revenue or social pride. So first we clearly understand the problem of our user after that we come to the solution and design a prototype then we validate it from users, after that they give feedback and we modify the product as per our customer demand. And we just show all those process clearly, concisely and systematically in a paper. In our business proposal we just focus on the one specific things so that we can easily connivance them through our business proposal.

Then after we must read the mindset of our investor what they want and why they are investing us? So we should have clear understanding about investment types and we should clearly mention there what we expect from them (Money, or Human Recourse). So we must define all these things in a three parts business concept, market plan section, and financial analysis. Business connect clear them what the product/service, what are the process, who are the team and what are their qualities, what value they get from the business, who are their customer and so on. In market plan section we should clearly define what are the distribution channel and communication channel, who are the competitors, what strategies we apply in the business, SWOT analysis etc. In financial analysis we should clearly mention how much cost is required at first, how much in fixed cost and variable cost, when the money will be back and how long time the business will be sustained. Based on those three parts we fit our business plan in a format of 8 different key components and these are Executive Summery, Business Development, Market Plan, Production Plan, Operation and Management and Financial Analysis in three different parts in a business plan like business concept, market plan section, and financial analysis. These all are equally important and our major duty is we should clearly mentioned in detail in our business proposal. We should keep in mind investors have not lots of time to read this proposal so that we frame it in a very interestingly so we can grape their attention very easily.

There are 4 anchors of potentials investors and these are: All investor want to earn money in a business by adding a certain value to their customer (Osnabrugge. M & Robinson, 2000), First they try to find the problem and when they get deeper insight of problem then they are able to find its appropriate solution so this solution definitely add certain value to their customer and it will be new USP for the company. They always ready to solve a problem so that customer can pay premium price (Barrow & Barrow, 2001)we have everywhere problem but we just superficially/ surficial analyze the problem but if we are motivating our investor then we go deeper to the problem then try to find its appropriate solution which daily affects human working environment if we are able to design an innovative product then our customer could definitely pay premium prize. For example, we have a traffic problem in Kathmandu and the time management problem is a big issue for them and we manage the all traffic light in an innovative way could be a possible solution and if we are able to do that they can ready for using our smart app system. The third one is, There is a good market, enough human capital and now the world become globalize any investor can outsource their works in different countries, they are not limiting only inside human manpower so we mention our proposal who could be best human capital and what will be the possible team for us. At last, they should have a team and team could from all sectors like one from a financial expert, another is from a technical expert and another is processed expert other is operation experts. So if we are able to make a diverse team to our business it could attract our investor towards the business. So if aspiring entrepreneurs mention all those things clearly in a business proposal then we could able to motivate our possible investor. The investor also wants to learn how we are committed in this business and our experience. So we compulsory mention those things in our business plan.

References

Barrow, C., & Barrow, P. (2001). Business plan to our Angel Investor. The Business Plan Workbook 4th edn. London: Kogan Page.

Osnabrugge. M, V., & Robinson, R. J. (2000). WRITING A WINNING BUSINESS PLAN. The Guide for Entrepreneurs, Individual Investors, and Venture Capitalists.