Many entrepreneurs need to find investors for retail business startup or expansion because there is not enough personal capital available. The retail business plans play a central role in finding funding because it describes the business mission and lays out a path for business success. Every kind of investor wants to know details about the business in order to determine if the investment is likely to bring the desired return. Investors include equity investors, angel investors, venture capitalists, and bank lenders. The Small business Administration (SBA) also offers loans.
Write The Retail Business Plans
The plan must be clearly written, organized and logical, carefully crafted, and demonstrate likely success through good management. Experienced investors can spot a poorly planned business right away so harness the passion for the business idea long enough to write a sensible business plan based on sound operating principles.
Retail business plans are written for numerous reasons, including the following:
• Attract potential investors, including equity and angel investors
• Apply for a loan from the bank or SBA
• Establish a base operating plan (roadmap) that can be revised as necessary to stay on course
• Identify business value for purposes of selling the business
• Describe a business startup or expansion project
• Support a partnership agreement or alliance with another business
• Identify methods for business valuation for legal or inheritance purposes
• Define and evaluate new strategies for long-term success
• Better manage financial projections based on planned activities
Customize the Plan
The next question concerns what to include in the retail business plan. Though there are accepted best practices in business plan writing, there is a lot of leeway as to how each section of the retail business is presented.
• Demonstrate exactly how the business will generate enough profit to pay back loans or return investor funds
• Present an Executive Summary that is one to two pages long and succinctly explains what is included in the rest of the business plan
• Present specific management background, experience, competencies, and capabilities
• Describe the business in the Business Description section in terms of legal status, ownership, history, and current status
• Explain products and/or services and the market solution they provide
• Present a market analysis that describes the target market, customer demographics, competitors, industry trends, and other relevant information
• Present strategies for selling and promoting products and services
• Establishe business goals and objectives and how progress will be measured
Another critical section of the business plan is the financial projections. One of the things investors will look for is the reasonableness of the financial information. Business plans that have unrealistic financial projections or financial data not supported by the information provided in the rest of the document or by market research are quickly spotted.
The business plan is so critical to success that it is advisable to hire a business plan writer who has experience. The competition for investors and financial services lenders is intense. The reality is that many investors approach a business plan with the intent of rejecting it because they assume the plan is weak. Present a strong plan, and it gets the attention of readers right away.
Illustrative business plan samples
OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.