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July 11, 2013

What Investors Look For Part 2 : A Good Business Plan


After seeing that there is a strong integrated team on board, the next important thing potential investors and VCs will look for is the quality of the plan, and hence, the quality of the business plan. The business plan is an important document that captures your thought process and your understanding of the business, reflecting the quality of your plan.

By looking at the business plan, the VC will make an assessment of your understanding of the industry and ascertain what the key drivers of the industry are.

They will assess your understanding of your industry’s key success factors, and from there, judge if you have identified a winning formula for your company.

Knowing what the VCs and other investors look out for in a business plan will greatly help you put together an effective plan and help increase your chances of closing deals with them.

Beyond doing proper research and penning down the details of the business plan, investors will scan the business plan for a number of salient points, which are, namely: opportunities, threats, market size and market share, customers, marketing strategy, competitors, suppliers, risk analysis, financial plan, and cash flow.

We will look at these points in detail in the upcoming lectures.

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