There are three steps to the dance of raising capital for your business—build a solid business model, write a convincing business plan, and secure the proper investor(s).
Business Model
A business model is a detailed spreadsheet that maps every aspect of your business in dollars and cents and shows what targets you have to hit in order to be successful. Each business model is different but they all have many common elements including estimated market size, market penetration rates, sources of revenue, sources of capital, projected expenses, and estimated return on investment. Once you have all of the numbers in a spreadsheet you can quickly play “what if” scenarios and better predict the likelihood of success for your business.
Business Plan
An effective business plan helps you understand exactly where you are, where you are going, and how to get from here to there.
A solid business model is the foundation upon which you build your business plan. A business plan is the formal narrative that describes all aspects of your business operation. A well written business plan gives you and your team the map for running the business. It tells investors how your business works and how their investment will produce a solid return. Again, each business plan is different but there are some common elements including an executive summary, organizational background, product portfolio, marketing plan, operational plan, financial plan, and risk analysis. An effective business plan helps you understand exactly where you are, where you are going, and how to get from here to there.
Securing Capital
Once your business plan is complete you are ready to secure capital for your business. There are a number of different ways to fund your business—personal investment, angels, venture capital, commercial loans, SBA loans, and a host of other options. Many conscious businesses will want to work with conscious investors—people who have made their money, have financial freedom in their lives, and are now looking for meaning. A well written business plan, effective research on the right type of funding, targeted networking, and a stellar presentation will all be essential to securing new capital investment.
We can help!
At The Chief Good we can help you with any or all of these steps in the dance: building a business model, writing a business plan, and securing the right investors for your business. Contact us to find out more.