A business plan is a charter that contains important information pertaining to business such as business model, operations, past, competitor analysis, market analysis and project financial performance. It serves as a roadmap for the business and provides information in an understandable format to investors wanting to know more about the business. One of the main reason behind preparing a business plan is to raise private equity capital or angel investment in a startup. Its used by the equity or angel investors in getting an insight into the business to make an investment decision.
A well – written business plan contains details about the promoters, infrastructure information, human capital requirement, business model, industry outlook, competitor analysis, SWOT analysis, past financial performance, projected financial performance, key financial indicators and any other relevant information.
IMPORTANT ASPECTS
- Ensures easy access to equity funding.
- For ensuring a good business plan its imperative to hire a Financial Professional with good writing, presentation and financial analysis skill.
- It plays an important role in the syndication of capital from investors.