What Investors Look For Part 4 – Feasibility of Transforming Your Plan into a Business

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What Investors Look For Part 4 – Feasibility of Transforming Your Plan into a Business

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Previously, we have discussed the importance of having a good, detailed business plan. Potential investors will also be looking out for how realistic your plan is.

Many entrepreneurs have very well thought-out plans with aggressive numbers. While this could be seen as a sign of confidence in one’s business plan, investors often prefer more conservative scenarios. Your business plan, therefore, should be;

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One way of doing this is to break your long-term goals down into short-term milestones. These short-term milestones work as stepping-stones towards the next stage of growth. This shows potential investors that you are looking not just at the big picture, but also how you plan to reach your long-term goals, and convinces them that your goals are indeed realistic and can be achieved.

Investors’ confidence in an entrepreneur’s ability to execute their plan will be greater if an entrepreneur has a proven track record. Most of the time, however, this will be the first time that the entrepreneur will be running a company – which, you might argue, automatically puts the entrepreneur at a disadvantage because they have no track record.

What one can do in such an instance, then, would be to show the investors entrepreneurial ability in your previous work – what we may consider intrapreneurship, that is to say, entrepreneurship within a company. Give investors evidence of acts of entrepreneurship that have benefitted companies that you have previously worked in, and prove to them that just because you are a first-time entrepreneur does not mean that you do not have entrepreneurial traits.

A good business plan on its own does not automatically sway a potential investor in your favour. Your plan also has to be realistic, and you yourself have to be able to convince the investor that you possess the qualities to execute these plans.

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