“It’s
fine for the Fed not to have a rigid plan—it’s even good—but your company needs
a plan.”
In the previous post, we discussed the critical and key
components that investors are looking for in a business plan according to
industry experts: Mark Cuban and Dr. Steven Gedeon. Now that the
recommendations have been analyzed, it is time to incorporate what business
students have learned from their own research on the experts previously
profiled. For a business plan that is focused on a large-scale concert venue,
these are the recommendations that can be incorporated and utilized: make sure
to specify how much equity the investor will receive or how they will get a
return on their investment (Cuban, 2013).
When writing a professionally formatted business plan, the investor must walk
away with a clear understanding of how long it will take them to get a return
on their investment and how much equity they are receiving. They will also want
to see a clear exit strategy: a way to make a profit and move on to the next
deal. Business students have reformatted their business plans and made specific
changes based on the information provided by the experts which include: beefing
up their executive summary, and focusing on the needs and desires of the
investors solely.
Understanding what the business is, and whom you are selling
to, is an integral part of the business plan description for target markets (Scrhamm, 2012). Investors want to
know exactly whom a company has targeted as their main market. Meaning who is
the product or service targeted towards, and who actually buys it for that
target market. The most important sections of a business plan to an investor
reading your plan are considered to be the executive summary, management
section, and the financials.
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