Let’s
take a look at creating a business plan.
Sounds fun, right? Okay probably
not fun, but helpful. In order to get an
understanding of what investors are looking for in a business plan I took some
time to research a couple investors. Two
in particular Jeff
Davison a general partner of Inflection Point Ventures, and David
J Freschman a Managing Principal of Innovation Ventures. Jeff has been an early-stage investor since
1984, and also earned a Master’s degree in architecture and planning. David on the other hand has been a CEO of
Delaware Innovation Fund since it was established in 1995, and achieve an MBA
degree through the Loyola College of Maryland graduating with honors. So why does this matter? Well, the point is not so much who they are
but what they do and what it takes to achieve that career. Investing is a risky business, which is why
you have to be smart to be an investor. Clearly
both of these investors are book smart and have experience in the industry,
which is good for any of you who want to start a business but need to find a
quality investor. More importantly
though what do investors want?
After
a bit more research I was able to come across an interesting article from the
New York Times. This article titled “Five Things
Prospective Investors Are Looking for in Your Business Plan.” According to
this article an investor wants to see that you have experience in the industry,
they want to know that your product is unique and needed, it’s important that
your product reaches your target audience and stays constant, they also want to
see that you did your research, and they need to know they are getting a
realistic return on investment. These
are all key because it would be bad business not to have these things understood
before investing money into it. To go
blindly into a project thinking something is a great idea without thoroughly looking
at it can cause you to lose not only money but respect. Investing isn’t about being the nice guy it’s
about being financially responsible and making profit.
Personally
I’ll take all these suggestions and incorporate them into my business
plan. I want to create a business that
can last, because of that I will take what advice I can get and work with
it. There will always be questions and
most of the time answers won’t come easily, but in order to be successful you
have to be willing to make needed changes even when it’s a change you don’t
want to make. Below is a link to a Youtube video you may also find helpful.
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