Each company has its own set of strategies, focus points, and milestones that it would want to achieve in marketing, operations, and finances. All these aspects should be included in a business plan to provide a reason for the venture capitalists to see a competitive advantage in providing funding and investing capital into the company.
A venture capitalist, or a VC, is an investor that provides capital to start-ups or developing companies in exchange for an equity stake in the company. A business plan is usually the essential document that holds the key to attracting venture capitalists and persuades them to invest in their company. A business plan typically consists of an executive summary, a marketing plan, a financial plan, operational goals, and milestones they would like to achieve over a certain period. This assures the investors that the company has a vision and a plan to implement its goals. The length of a business plan varies depending on the size of the company and the industry in which they operate. There are different ways to write a business plan.
A one-page business plan does what the name suggests. It provides a quick summary of the business within one page, which includes a quick overview and concentrates on presenting unique features of the company that could prove to be an unfair advantage to the investors.
A lean business plan is more prolonged than one page and not as long as traditional business plans could range from 30 to 50 pages in length. A lean business plan focuses purely on the critical aspects of the business, such as a long-term strategy, immediate tactics, financial milestones to achieve, operational milestones to achieve, and forecasting the success of their business. There are many elements to a business plan, but the following are some of the most important ones that venture capitalists look for in a business plan.
