if you’re looking to get funding for
your business today I’m going to share
the most important three things that
investors look for in a winning business
plan so I got a question for one of my
YouTube viewers Jaz love you guys who
wrote in to say yes I would like to say
thank you so much for sharing your idea
I’m glad I could help I just want to ask
you how to make a business plan for my
investor a plan that is clear to them to
show them how they will make money your
reply is highly appreciated thank you
so Jaz this is a great question and I
used to work as a venture capitalist and
my role in that business was to screen
the business plans I was a guy who was
getting all the business plans coming in
and had to make a decision whether I
would accept a meeting or politely say
no and you have to understand that 99%
of the plans the venture capitalists see
get rejected so I’m going to tell you
how to get your foot in the door and
have it get a yes out of an investor
here are the three most important things
that we looked at when evaluating a new
business plan number one was your
executive summary the first thing that
an investor looks at is the executive
summary of your business plan they don’t
have time to read a 30 40 50 page
document they want to see that one to
three pages at the start that quickly
explains what it is that you do if they
don’t like it if they don’t see the
opportunity if they don’t understand it
then your business plan is going
straight to the garbage pile there’s a
term in the industry called the
grandmother test where you want to make
your business plan so easy to understand
that your grandmother can understand it
remember that investors don’t know your
business as well as you know your
business and never will so you have to
make your business plan and especially
the executive summary easy enough for
anybody to understand make it simple
dumb down the language take out any
industry terminology or acronyms or
short forms so that anybody can
understand what you’re talking about and
before you give your executive summary
your business plan to an investor make
sure you run it by your friends and
family first to again see if they
actually understand what the opportunity
is when you past a grandmother test then
you’re ready to give it to investors
number two is your management team so if
an investor
your executive summary the next thing
gonna look at is your management team
because in investors eyes the idea is
important but much more important than
the idea is the team that’s going to
execute it as a venture capitalist I saw
dozens of companies pitch me variations
of the same idea the real question for
us became which management team is going
to be the company that can actually
execute it and deliver results so on
your management team you want to show
that you have experience and that you
know what you’re talking about the
biggest factor here that held a lot of
plans back from getting a yes was a lack
of start-up experience on the management
team so when you’re managing BIOS you
want to make yourself look as good as
possible show off all the work that
you’ve done show up all the wins that
you’ve have and show up all the momentum
that you’ve built so far into your
business and if you don’t have a lot of
practical business experience yet
consider building a Board of Advisors
and bringing on people into your
business to help advise you to grow even
something as simple as adding your
business lawyer or your accountant to
your Board of Advisors can give you a
lot more credibility and Trust in an
investor’s eyes it’s important to
understand your strengths and what your
skills are that you are the best in the
world at and then surround yourself with
people who can complement your
weaknesses and put that in your business
plan so that the investor see you’ve
thought this thing through and number
three is a financials so if an investor
likes your executive summary they like
your management team the next thing you
know flip through is the back of the
document which is typically where all
your financials are they want to see
that the numbers make sense they want to
see that there’s an opportunity for them
to make money some of the common
pitfalls that a lot of entrepreneurs
make in their business plan in specific
to the financial section is one they
have projections that are astronomical
like we’re going to be the next
Microsoft and we’re going to get there
in three years well you might want to
taper that down a little bit too they
pay themselves huge salaries right
they’re asking for $500,000 for their
business and there’s four partners and
I’m going to give each other
$100,000 each for the year and only have
$100,000 in working capital for the
business that actually happened that was
a business plan that somebody submitted
to me so the use of
seeds has to make sense use of proceeds
means how are you going to use that
money you’re asking for X amount of
money where is that going to go in your
business and does that make sense or not
and then the third is how am I going to
get a return out of this if you’re
talking to angel investors they
typically want to see 30% return every
year on average and be out of your
business in five to eight years so they
have to see first of all that one there
is some kind of exit that somebody is
going to buy you out or that you can go
public with your business and two that
you can generate returns in excess of
30% average per year to be able to give
them that’s when you get an investor
excited so work on having a really clear
executive summary build out that
management team expertise and have solid
financials that you can explain every
single line on it and tell them how you
arrived at those numbers those are the
first three things that any investor is
going to look at from there they’ll flip
through the rest of your business pining
that they like it have you come in for
meeting I hope that helps Jaz good luck
on getting that investor for your
business and for those who are watching
you have a question or comment leave it
below I’d love to engage with you
remember to believe and if you like this
video you want to see more don’t forget
to subscribe to the channel thank you
guys so much for watching
I’ll see you soon self-improvement books
are like Fitness books they never work
on their own what you need is a trainer
that’s Evan gap the newsletter
you
your business today I’m going to share
the most important three things that
investors look for in a winning business
plan so I got a question for one of my
YouTube viewers Jaz love you guys who
wrote in to say yes I would like to say
thank you so much for sharing your idea
I’m glad I could help I just want to ask
you how to make a business plan for my
investor a plan that is clear to them to
show them how they will make money your
reply is highly appreciated thank you
so Jaz this is a great question and I
used to work as a venture capitalist and
my role in that business was to screen
the business plans I was a guy who was
getting all the business plans coming in
and had to make a decision whether I
would accept a meeting or politely say
no and you have to understand that 99%
of the plans the venture capitalists see
get rejected so I’m going to tell you
how to get your foot in the door and
have it get a yes out of an investor
here are the three most important things
that we looked at when evaluating a new
business plan number one was your
executive summary the first thing that
an investor looks at is the executive
summary of your business plan they don’t
have time to read a 30 40 50 page
document they want to see that one to
three pages at the start that quickly
explains what it is that you do if they
don’t like it if they don’t see the
opportunity if they don’t understand it
then your business plan is going
straight to the garbage pile there’s a
term in the industry called the
grandmother test where you want to make
your business plan so easy to understand
that your grandmother can understand it
remember that investors don’t know your
business as well as you know your
business and never will so you have to
make your business plan and especially
the executive summary easy enough for
anybody to understand make it simple
dumb down the language take out any
industry terminology or acronyms or
short forms so that anybody can
understand what you’re talking about and
before you give your executive summary
your business plan to an investor make
sure you run it by your friends and
family first to again see if they
actually understand what the opportunity
is when you past a grandmother test then
you’re ready to give it to investors
number two is your management team so if
an investor
your executive summary the next thing
gonna look at is your management team
because in investors eyes the idea is
important but much more important than
the idea is the team that’s going to
execute it as a venture capitalist I saw
dozens of companies pitch me variations
of the same idea the real question for
us became which management team is going
to be the company that can actually
execute it and deliver results so on
your management team you want to show
that you have experience and that you
know what you’re talking about the
biggest factor here that held a lot of
plans back from getting a yes was a lack
of start-up experience on the management
team so when you’re managing BIOS you
want to make yourself look as good as
possible show off all the work that
you’ve done show up all the wins that
you’ve have and show up all the momentum
that you’ve built so far into your
business and if you don’t have a lot of
practical business experience yet
consider building a Board of Advisors
and bringing on people into your
business to help advise you to grow even
something as simple as adding your
business lawyer or your accountant to
your Board of Advisors can give you a
lot more credibility and Trust in an
investor’s eyes it’s important to
understand your strengths and what your
skills are that you are the best in the
world at and then surround yourself with
people who can complement your
weaknesses and put that in your business
plan so that the investor see you’ve
thought this thing through and number
three is a financials so if an investor
likes your executive summary they like
your management team the next thing you
know flip through is the back of the
document which is typically where all
your financials are they want to see
that the numbers make sense they want to
see that there’s an opportunity for them
to make money some of the common
pitfalls that a lot of entrepreneurs
make in their business plan in specific
to the financial section is one they
have projections that are astronomical
like we’re going to be the next
Microsoft and we’re going to get there
in three years well you might want to
taper that down a little bit too they
pay themselves huge salaries right
they’re asking for $500,000 for their
business and there’s four partners and
I’m going to give each other
$100,000 each for the year and only have
$100,000 in working capital for the
business that actually happened that was
a business plan that somebody submitted
to me so the use of
seeds has to make sense use of proceeds
means how are you going to use that
money you’re asking for X amount of
money where is that going to go in your
business and does that make sense or not
and then the third is how am I going to
get a return out of this if you’re
talking to angel investors they
typically want to see 30% return every
year on average and be out of your
business in five to eight years so they
have to see first of all that one there
is some kind of exit that somebody is
going to buy you out or that you can go
public with your business and two that
you can generate returns in excess of
30% average per year to be able to give
them that’s when you get an investor
excited so work on having a really clear
executive summary build out that
management team expertise and have solid
financials that you can explain every
single line on it and tell them how you
arrived at those numbers those are the
first three things that any investor is
going to look at from there they’ll flip
through the rest of your business pining
that they like it have you come in for
meeting I hope that helps Jaz good luck
on getting that investor for your
business and for those who are watching
you have a question or comment leave it
below I’d love to engage with you
remember to believe and if you like this
video you want to see more don’t forget
to subscribe to the channel thank you
guys so much for watching
I’ll see you soon self-improvement books
are like Fitness books they never work
on their own what you need is a trainer
that’s Evan gap the newsletter
you
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