After communicating and conversing with a large number of front-line investors, BP Madness summarized ten must-see angel investors and made some sort of combing of their logic, which, in our opinion, constitutes the basic format of a business plan:
1. Tell the investor directly what you are doing. (pain point analysis/needs analysis)
2. Describe your product or solution. (Solution)
3. Product profile (product introduction, user profile)
4. Explain the size of the market with data. (Market overview)
5. Business model
6. Explain the current operation. (Operational data)
For early stage projects, it is difficult to have data. But for some entrepreneurs with MVP (Minimally Viable Product), you'll be able to present some data from your small-scale testing. It's a good proof about your product, but be careful to be as granular as possible in designing the structure of the data to the point where it can solve the problem.
Meanwhile, early stage entrepreneurs must be on the lookout for doing data analysis when starting a business, even if it can't be solved by technical means for now. When we look at many projects, their BPs present investors with very granular data, making it difficult to explain the real problem. There is a saying "If you don't know how you make money now, you still won't know in the future."
You should describe the current state of your core data and how it might change in the future, depending on the project. The current state reflects the extent to which existing products and business models are validated, and the trend of the data reflects the extent to which the core data will be driven by funding.
The core data of different projects, should make some distinction, focus on the data you really care about, rather than some vanity indicators (the term was first out of the "Lean Startup") If you are a social company, focus on growth, focus on retention, focus on the length of time the user is right. If you're a B2B company, you should probably focus more on the number of businesses, the amount of transactions, the price per transaction, the time of the transaction, and so on.
Data is the basis for investors to do preliminary testing and judgment on the project's solution and product, which proves whether your solution is reasonable, whether it can withstand scrutiny, and whether the product direction is reliable. Data will become an increasingly important part of financing in the future.
7. Demonstrate your advantage in doing this. (Competitors, competitive advantages)
8. Financing needs. (equity structure, financing plan)
Tell the investor how the company's equity is currently distributed, how much money you need, what these funds are used for, and what percentage of each.
9. Describe your team in detail. (Team introduction)
10. Contact information. (Contact information)
Generally contains the founder's name, phone number, email, and address.
Generally the number of pages in the business plan between 10-15 pages, charts and graphs, supplemented by text, avoid long and exhaustive, all-encompassing. The logic of the above can be based on the differences in investment and financing stage, as well as the differences in the investment object can make some adjustments, you can also see some excellent business plan template for reference.