how to write a business plan for investors a lot of entrepreneurs come in
investors a lot of entrepreneurs come in
investors a lot of entrepreneurs come in with this kind of question that came in
with this kind of question that came in
with this kind of question that came in recently from one of my YouTube viewers
recently from one of my YouTube viewers
recently from one of my YouTube viewers beauty box beauty box wrote in to say
beauty box beauty box wrote in to say
beauty box beauty box wrote in to say I’m a new subscriber Evan I’m a recent
I’m a new subscriber Evan I’m a recent
I’m a new subscriber Evan I’m a recent graduate with a great business idea my
graduate with a great business idea my
graduate with a great business idea my major was in business I’m having
major was in business I’m having
major was in business I’m having difficulty putting together business
difficulty putting together business
difficulty putting together business plan do you have a generic template I
plan do you have a generic template I
plan do you have a generic template I can use or Norva site where I can get
can use or Norva site where I can get
can use or Norva site where I can get one thank you when you’re approaching
one thank you when you’re approaching
one thank you when you’re approaching investors okay I don’t know if you’re
investors okay I don’t know if you’re
investors okay I don’t know if you’re going after angel investors or friends
going after angel investors or friends
going after angel investors or friends and family or Bank or whatever it is it
and family or Bank or whatever it is it
and family or Bank or whatever it is it doesn’t have to be complicated
doesn’t have to be complicated
doesn’t have to be complicated okay business plan does not have to be
okay business plan does not have to be
okay business plan does not have to be super complicated you don’t have to have
super complicated you don’t have to have
super complicated you don’t have to have a business degree don’t don’t let that
a business degree don’t don’t let that
a business degree don’t don’t let that hold you back just because you don’t
hold you back just because you don’t
hold you back just because you don’t have a business degree you think I can’t
have a business degree you think I can’t
have a business degree you think I can’t write a great business plan okay what it
write a great business plan okay what it
write a great business plan okay what it has to do is make sense if you go to any
has to do is make sense if you go to any
has to do is make sense if you go to any bank website any major bank they’ll have
bank website any major bank they’ll have
bank website any major bank they’ll have templates there they’ll have templates
templates there they’ll have templates
templates there they’ll have templates of business plans that you can look at
of business plans that you can look at
of business plans that you can look at and see how to structure it the
and see how to structure it the
and see how to structure it the structure is not as important as the
structure is not as important as the
structure is not as important as the content and as long as it makes sense an
content and as long as it makes sense an
content and as long as it makes sense an investor is going to look at it and make
investor is going to look at it and make
investor is going to look at it and make a decision based on that remember
a decision based on that remember
a decision based on that remember investors are not experts in your field
investors are not experts in your field
investors are not experts in your field they are not experts in the beauty
they are not experts in the beauty
they are not experts in the beauty business they’re generalists they want
business they’re generalists they want
business they’re generalists they want to see that you’re going to be able to
to see that you’re going to be able to
to see that you’re going to be able to make them money or if it’s a loan to pay
make them money or if it’s a loan to pay
make them money or if it’s a loan to pay back that loan I used to be in the
back that loan I used to be in the
back that loan I used to be in the venture capital business and here are
venture capital business and here are
venture capital business and here are the three things that I looked at first
the three things that I looked at first
the three things that I looked at first three things these are the three things
three things these are the three things
three things these are the three things that I looked at before make a decision
that I looked at before make a decision
that I looked at before make a decision to bring in a company and give them
to bring in a company and give them
to bring in a company and give them money or not
money or not
money or not okay the very first thing is the
okay the very first thing is the
okay the very first thing is the executive summary that’s the one or two
executive summary that’s the one or two
executive summary that’s the one or two pages at the beginning of your business
pages at the beginning of your business
pages at the beginning of your business plan that explains in basic English what
plan that explains in basic English what
plan that explains in basic English what it is that you do and so many
it is that you do and so many
it is that you do and so many entrepreneurs get this wrong most of the
entrepreneurs get this wrong most of the
entrepreneurs get this wrong most of the business ones that I saw got trashed
business ones that I saw got trashed
business ones that I saw got trashed because the executive summary was was
because the executive summary was was
because the executive summary was was terrible if you don’t do a good job an
terrible if you don’t do a good job an
terrible if you don’t do a good job an executive summary doesn’t matter how
executive summary doesn’t matter how
executive summary doesn’t matter how great a business plan you have nobody’s
great a business plan you have nobody’s
great a business plan you have nobody’s going to read it because you didn’t sell
going to read it because you didn’t sell
going to read it because you didn’t sell them on the executive summary so that
them on the executive summary so that
them on the executive summary so that one page is critical has everything that
one page is critical has everything that
one page is critical has everything that somebody needs to know about the
somebody needs to know about the
somebody needs to know about the opportunity ahead of them okay the one
opportunity ahead of them okay the one
opportunity ahead of them okay the one thing that that we always look for is
thing that that we always look for is
thing that that we always look for is that it passed the grandmother test okay
that it passed the grandmother test okay
that it passed the grandmother test okay this was the turmeric music
this was the turmeric music
this was the turmeric music s in the VC world is it so simple to
s in the VC world is it so simple to
s in the VC world is it so simple to understand that your grandmother can
understand that your grandmother can
understand that your grandmother can understand it because too many
understand it because too many
understand it because too many entrepreneurs put jargon and short forms
entrepreneurs put jargon and short forms
entrepreneurs put jargon and short forms and technical terms that the investors
and technical terms that the investors
and technical terms that the investors they don’t understand that and it makes
they don’t understand that and it makes
they don’t understand that and it makes sense to you
sense to you
sense to you you read this together that’s what we do
you read this together that’s what we do
you read this together that’s what we do of course how do you not understand that
of course how do you not understand that
of course how do you not understand that but it doesn’t make sense to the average
but it doesn’t make sense to the average
but it doesn’t make sense to the average person so make sure that you give your
person so make sure that you give your
person so make sure that you give your executive summary to a person who has no
executive summary to a person who has no
executive summary to a person who has no idea what your business is all about a
idea what your business is all about a
idea what your business is all about a layman because if they can understand it
layman because if they can understand it
layman because if they can understand it and see the opportunity then you’re
and see the opportunity then you’re
and see the opportunity then you’re ready to bring it to investors so it’s
ready to bring it to investors so it’s
ready to bring it to investors so it’s the most important first step get the
the most important first step get the
the most important first step get the executive summary down the next thing
executive summary down the next thing
executive summary down the next thing they’re going to look at is your
they’re going to look at is your
they’re going to look at is your financials they want to see how much
financials they want to see how much
financials they want to see how much money do you need what’s it going to be
money do you need what’s it going to be
money do you need what’s it going to be used for and how much money are they
used for and how much money are they
used for and how much money are they going to make back different types of
going to make back different types of
going to make back different types of investors have different criteria if
investors have different criteria if
investors have different criteria if you’re looking to go to a bank they
you’re looking to go to a bank they
you’re looking to go to a bank they don’t want to see massive huge returns
don’t want to see massive huge returns
don’t want to see massive huge returns they want to they want the security that
they want to they want the security that
they want to they want the security that they’re going to make their money back
they’re going to make their money back
they’re going to make their money back if you’re going to an angel investor
if you’re going to an angel investor
if you’re going to an angel investor they want to see that you’re going to be
they want to see that you’re going to be
they want to see that you’re going to be making thirty percent a year on their
making thirty percent a year on their
making thirty percent a year on their money because they want an exit from
money because they want an exit from
money because they want an exit from this so they want to see high growth if
this so they want to see high growth if
this so they want to see high growth if you’re a low cost low margin low growth
you’re a low cost low margin low growth
you’re a low cost low margin low growth type of business that’s not going to
type of business that’s not going to
type of business that’s not going to work with an angel investor so you’ve
work with an angel investor so you’ve
work with an angel investor so you’ve got to make sure that the financials
got to make sure that the financials
got to make sure that the financials make sense for the person that you’re
make sense for the person that you’re
make sense for the person that you’re talking to the next thing and the last
talking to the next thing and the last
talking to the next thing and the last thing they’ll look for before making a
thing they’ll look for before making a
thing they’ll look for before making a decision to read the whole business plan
decision to read the whole business plan
decision to read the whole business plan is the team who is behind this company
is the team who is behind this company
is the team who is behind this company there’s an expression in the VC world
there’s an expression in the VC world
there’s an expression in the VC world again called horse for the course
again called horse for the course
again called horse for the course meaning are you the right person to be
meaning are you the right person to be
meaning are you the right person to be at the head of this company and make
at the head of this company and make
at the head of this company and make this opportunity to happen because you
this opportunity to happen because you
this opportunity to happen because you could be in a great market but if you’re
could be in a great market but if you’re
could be in a great market but if you’re not the right person you’re not going to
not the right person you’re not going to
not the right person you’re not going to be successful and you can be in a crappy
be successful and you can be in a crappy
be successful and you can be in a crappy market but if you are the right person
market but if you are the right person
market but if you are the right person you can still build a great company so
you can still build a great company so
you can still build a great company so they want to learn about the management
they want to learn about the management
they want to learn about the management team who are you and the biggest thing
team who are you and the biggest thing
team who are you and the biggest thing that most entrepreneurs fall down on
that most entrepreneurs fall down on
that most entrepreneurs fall down on here is they have lack of startup
here is they have lack of startup
here is they have lack of startup experience investors and bankers they
experience investors and bankers they
experience investors and bankers they want to see that you have done this
want to see that you have done this
want to see that you have done this before
before
before or you have people on your team who’ve
or you have people on your team who’ve
or you have people on your team who’ve done this before and quite often on a
done this before and quite often on a
done this before and quite often on a management team there’s nobody there
management team there’s nobody there
management team there’s nobody there it’s just you
it’s just you
it’s just you and you’ve never done it before and so
and you’ve never done it before and so
and you’ve never done it before and so these are like big strikes against you
these are like big strikes against you
these are like big strikes against you so yeah I’m gonna risk my money with
so yeah I’m gonna risk my money with
so yeah I’m gonna risk my money with this person I don’t think so one way to
this person I don’t think so one way to
this person I don’t think so one way to combat this is to you can either look
combat this is to you can either look
combat this is to you can either look for partners so bring on people who who
for partners so bring on people who who
for partners so bring on people who who have more experience who can compliment
have more experience who can compliment
have more experience who can compliment you but if you don’t want to give up
you but if you don’t want to give up
you but if you don’t want to give up equity you’re not quite sure to
equity you’re not quite sure to
equity you’re not quite sure to partnership relationship yet create a
partnership relationship yet create a
partnership relationship yet create a Board of Advisors and these are people
Board of Advisors and these are people
Board of Advisors and these are people who’ve had some experience have some
who’ve had some experience have some
who’ve had some experience have some success they don’t have any equity in
success they don’t have any equity in
success they don’t have any equity in your business it’s it’s kind of a loose
your business it’s it’s kind of a loose
your business it’s it’s kind of a loose term but they’re willing to lend their
term but they’re willing to lend their
term but they’re willing to lend their name to the business and an advisor
name to the business and an advisor
name to the business and an advisor could be structured where you meet them
could be structured where you meet them
could be structured where you meet them every month and you have coffee talk
every month and you have coffee talk
every month and you have coffee talk about it or it could be that you you
about it or it could be that you you
about it or it could be that you you know it’s loose and every six months you
know it’s loose and every six months you
know it’s loose and every six months you have a phone call as long as they’re
have a phone call as long as they’re
have a phone call as long as they’re willing to help you and lend their name
willing to help you and lend their name
willing to help you and lend their name to the project because if a banker or an
to the project because if a banker or an
to the project because if a banker or an investor looks at your management team
investor looks at your management team
investor looks at your management team and they see you with no experience no
and they see you with no experience no
and they see you with no experience no partners you’ve never done it before
partners you’ve never done it before
partners you’ve never done it before they’re thinking I’m going to lose all
they’re thinking I’m going to lose all
they’re thinking I’m going to lose all my money so reduce that risk separate
my money so reduce that risk separate
my money so reduce that risk separate yourself from everybody else bring on
yourself from everybody else bring on
yourself from everybody else bring on the Board of Advisors talk to people
the Board of Advisors talk to people
the Board of Advisors talk to people even if it’s your lawyer or your
even if it’s your lawyer or your
even if it’s your lawyer or your accountant even just putting their names
accountant even just putting their names
accountant even just putting their names on there to say their advisers you’ve
on there to say their advisers you’ve
on there to say their advisers you’ve already separated yourself from most of
already separated yourself from most of
already separated yourself from most of the other people who are presenting and
the other people who are presenting and
the other people who are presenting and giving their business planning because
giving their business planning because
giving their business planning because it shows that you value and trust the
it shows that you value and trust the
it shows that you value and trust the expertise of other people who can help
expertise of other people who can help
expertise of other people who can help you build this thing up okay if you pass
you build this thing up okay if you pass
you build this thing up okay if you pass those three things they’re going to look
those three things they’re going to look
those three things they’re going to look to the rest of the business plan and see
to the rest of the business plan and see
to the rest of the business plan and see if they want to make a decision to bring
if they want to make a decision to bring
if they want to make a decision to bring you in invest in you or whatever okay
you in invest in you or whatever okay
you in invest in you or whatever okay the actual templates are not hard to
the actual templates are not hard to
the actual templates are not hard to find
find
find again any bank website will have sample
again any bank website will have sample
again any bank website will have sample templates but the templates is a good
templates but the templates is a good
templates but the templates is a good starting point to give you an idea of
starting point to give you an idea of
starting point to give you an idea of the sections but really the meat of it
the sections but really the meat of it
the sections but really the meat of it is going to come from having an
is going to come from having an
is going to come from having an executive summary that makes sense
executive summary that makes sense
executive summary that makes sense financials that make sense that a tailor
financials that make sense that a tailor
financials that make sense that a tailor to the person you’re talking to and then
to the person you’re talking to and then
to the person you’re talking to and then having a management team / Board of
having a management team / Board of
having a management team / Board of Advisors that give the investor some
Advisors that give the investor some
Advisors that give the investor some sense of security that they give you
sense of security that they give you
sense of security that they give you money you’re not going to go lose it all
money you’re not going to go lose it all
money you’re not going to go lose it all thank you for the great question you
thank you for the great question you
thank you for the great question you have any more questions let me know
have any more questions let me know
have any more questions let me know believe for those of you watching like
believe for those of you watching like
believe for those of you watching like the video give it a thumbs up if you
the video give it a thumbs up if you
the video give it a thumbs up if you have a comment about this video or you
have a comment about this video or you
have a comment about this video or you want me to expand on
want me to expand on
want me to expand on things I talked about leave a question
things I talked about leave a question
things I talked about leave a question below in the comments I make a video
below in the comments I make a video
below in the comments I make a video response thank you so much and I’ll see
response thank you so much and I’ll see
response thank you so much and I’ll see you soon
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