Archive for December 12, 2007

Business Plan for Angel Investors or Venture Capital

ColinC Asks:

I have a business concept that will require me to raise equity from a private placement. Should I use a more complex business plan?

Mr. BizPlan Answers:

I guess that depends on what you are asking.

If you are asking: “Should I use a more complex business plan than Capital Business Plan Basic the free online business plan software offered at www.diybizplan.com?” - then my answer would definitely be - Yes!  You will need a 3-5 year financial projection, but it is a good place to start your business plan.

If you are asking me in general: “Does a business plan for raising equity capital have to be more complex than one that is written for, say, a bank loan.  The answer is “No”.  You will not necessarily need a more complex business plan for raising investor capital but one with a different focus.   

Generally, Investors care about three main things (in no particular order):

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