(1888 PressRelease) In this press release Angelo Sferrazza gives his insight for expert investors for 2020 and then speaks on writing business plans for 2020.
Cincinnati, OH-KY-IN – Angelo Sferrazza says with so many business plans being sent to Investors and Lenders in the coming year 2020, your business plan needs a clear simple outline that addresses the following primary information from Investors and Lenders perspective. Investors and Lenders want to know upfront is this business a start-up, expansion or turn-around. This information immediately helps the investor focus on what specific information they will be looking for next.
While the investor will be interested in knowing how you operate your business, what your revenue and expense projections are and, how they will receive a return on their investment, Angelo Sferrazza say “that information is not the most important information Investors want to know early on in reviewing a business plan”. The information investors seek after understanding what category the business is in (start-up, expansion or turn around) is quantify the risk associated with funding the investment. This is the most important content of the business plan.
A well thought out and written business plan will provide these answers to the investor. Angelo Sferrazza stresses that a higher likely hood of funding can be secured if the business plan outlines how funding the business seeks and how it will be secured. Most investors want to be cure…so tell them how their investment is collateralize.
Offering collateral is one of the best ways to secure funding from investors. Investors like to secure investments with real estate that has equity. If the business assets (inventory, receivables, patents, licenses and even leases) are to be used to secure the funding company from investors then Angelo Sferrazza suggest to put those assets into a separate limited liability company known as a special purpose vehicle or (SPV) and offer the investor a Uniform Commercial Code, UUC lien (first lien) on the business collateral.
Angelo Sferrazza says “while business plans are often written in an chronological order to provide a flow of various information, most investors will not read beyond the point of understating the aforementioned, that is how is my investment secure. Most businesses fail in writing business plans to strategically think through this process, even when they have the assets or collateral to offer to attract investors.
Beyond addressing the funding request investor want a business that shows the problem that exists and the solution the business solves and where you want to go, along with a plan of action on how you are going to get there.
A business plan should provide specific details…
1. Executive summary. An overview to include the business stage as a start-up, expansion or turn-around.
2. Company description. Overview of your history, business legal structure, your products/services, key partners, and summaries of your financial and business goals.
3. Products/services. A detailed description of the products or services you provide. This section should illustrate how your product benefits your target customers.
4. Market analysis. Explain the market need and how your products and services satisfy that need.
5. Management team. An organizational chart of owners, key employees, the management team, board members, advisers, etc.
6. Financial plan. Most importantly include financial statements and realistic budget forecasts over the next 2 years.
Lastly, Angelo Sferrazza says “research is critical to sharing your business plan. Expect investors to be prepared with questions about your business plan. Have industry experts review your plan prior to talking to investors and get feedback and insights. There are also a number of government agencies that offer free consultation (Score, etc.). You must anticipate the questions from investors in advance and be ready to provide specific accurate responses”. Understand the pros and cons of your competition.
http://www.angelosferrazzacincinnatiohio.com
