Investor business plans approach planning from the eyes of potential investors. These plans prioritize easy access to information and get straight to the point. Here are some quick facts about investor business plans. Investor plans are perfect for those seeking any kind of investment, from working with venture capitalists or angel investors to approaching friends and family. These plans make a clean, professional impression and base their appeal on hard facts, accurate numbers, and in-depth research and financials.
Making an Investment Plan: A Step-by-Step Guide
Investment Banker: Job Description & Average Salary
In this edited excerpt, the authors discuss the ABCs of getting a bank loan for your business. Many of the most successful businesses are financed by banks, which can provide small to moderate amounts of capital at market costs. Bankers primarily provide debt financing. You take out a loan and pay it back, perhaps in installments consisting of principal and interest, perhaps in payments of interest only, followed by a balloon payment of the principal. Bankers can usually be counted on to want minimal, if any, input into how the business is run. Loan covenants may require you to do all sorts of things, from setting a minimum amount of working capital you must maintain to prohibiting you from making certain purchases or signing leases without bank approval.
How to Write a Business Plan Banks Can't Resist
A business plan is a foundation, or rather a springboard, towards the establishment and growth of a new business. A business plan is an essential tool for companies raising capital —and your business plan needs to be investor-ready. An investor-ready business plan is a document that has been professionally prepared to meet the needs of both venture capitalists and angel investors. They will want to see specific information in your well-crafted plan that allows them to feel comfortable investing money into your business.
This sample plan was created for a hypothetical investment company that buys other companies as investments. It pays salaries to its partners and other employees, and office expenses, from the management fee. The investments show up in the Cash Flow table as the purchase of long-term assets, which also puts them into the balance sheet as long-term assets. You can see them in this sample plan, in the first few months.