What do investors look for in a business plan?
Don’t expect that every investor will be excited about your business plan. Investors have their own idiosyncrasies. Some investors prefer to work with traditional businesses, like restaurants. Others might have a distinct preference for technology firms. It is therefore essential that the entrepreneur conduct some background research on the investor to ensure that the investor is the right match for your business. Or the entrepreneur could also use a consultant who has established relationships with various investors. Even when there is a match, most investors will not thoroughly read your plan. They usually focus on a few areas of the business plan, like the executive summary, marketing and finance. According to Howard Sommer, a Venture capitalist, his firm receives over 30 business plans a months. However, they only fund less that 2% of those plans. He also added that they are concern is that a firm has the potential to return at least 60% return on investment (RI). (Other venture ca
