The most important function of a business plan is to create interest among investors so that they write a check. In achieving this goal, business plan writers are often challenged by determining the proper level of optimism in their plan. That is, they must create a compelling story to investors while maintaining credibility.
Optimism shows investors that a company is confident about the market opportunity, its ability to execute on the opportunity, etc. Over-optimism, however, leads investors to believe that the management team does not fully understand the opportunity or the tough road ahead. As such, business plans must be sure to limit over-optimism and show investors they are realistic and credible.
Realism, the opposite of over-optimism, should be used in business plans to portray sobriety and credibility to investors. Realism should manifest itself in management team bios that tell the actual accomplishments of managers, rather than fluff. It should manifest itself in credible market forecasts and sober assumptions of the company's growth.
While business plans must excite investors so they take action, if they are too optimistic, investors will discount their merit. Conversely, if they are too sober, investors may not feel they will get an adequate return on their investment. As such, business plans should present a compelling, optimistic picture, but continuously refer to hard facts and realistic assumptions to build credibility and genuine excitement.
GT Business Plans has developed over 200 business plans for clients that have collectively raised over $750 million in financing, launched numerous new product and service lines and gained competitive advantage and market share. GT Business Plans is the sister site of GT Venture Capital.
According to the latest edition of Pool and Spa news;... Read More
In my last article, "Follow That Guru", I told you... Read More
To morning commuters, the hulking truck encircled with barricades and... Read More
For the past ten-months, I tried every drug from the... Read More
Isn't enthusiasm a good thing? Aren't we urged to be... Read More
There are many coating businesses in the market today, but... Read More
About 6 years ago I started to notice that certain... Read More
Bootstrapping in the context of business start-ups refers to the... Read More
James had an original concept and he needed an investor.... Read More
The "Great One" said it bestHockey legend Wayne Gretzky, when... Read More
Select the best response to the statement below:As a solo... Read More
Not everyone is cut out to run a business. Not... Read More
Q. I was laid off six months ago. Jobs in... Read More
If you have seen me speak you will know that... Read More
When I got into business I wanted to build a... Read More
Anyone who is serious about making some money is already... Read More
Entrepreneurs and their businesses have a tendency to ambush themselves... Read More
Isn't it funny how people think that being self-employed is... Read More
In each of us, there is a creative spark -... Read More
If you want to compete in the world of high... Read More
I was reminded of my own mortality today. I guess... Read More
Who would ever have imagined that going door-to-door in my... Read More
Saving time means pacing yourself, being organized, and always prioritizing... Read More
Q: I started my business about a year ago and... Read More
The most successful entrepreneurs rely on their advisory boards to... Read More
1. Do What You LOVE: If you've chosen your business... Read More
I'm sure that you've heard about how many start up... Read More
Every business has to start somewhere. What truly makes this... Read More
EMPATHY is a Natural Talent, you were born with it... Read More
In discussing entrepreneurship and writing articles on the subject, I... Read More
Some of us are born into families with "it", some... Read More
Many people believe owning a franchise will make them rich,... Read More
If you've ever received a service today and paid for... Read More
Running a business is not an easy endeavor, it takes... Read More
It's very important to get your business name right. You... Read More
Successful entrepreneurs have many traits in common. Here are ten... Read More
Leadership is based on two words, "pressure and support"and that... Read More
The basic rule is simple: "Find a market need and... Read More
You're a smart, hardworking entrepreneur, and you're moving fast. You... Read More
Living in the twilight zone has its advantages. In the... Read More
I think it's fair to say that not everyone is... Read More
This year more than 17 million people will become entrepreneurs,... Read More
Almost every day, I talk with people who want to... Read More
Summary: Even with a wide variety of sources available, coming... Read More
If your company is like the one I work for,... Read More
The "spark" for many entrepreneurs is seeing an opportunity that... Read More
Have you ever imagined what it would be like to... Read More
Jones was a typical entrepreneur who worked long hours and... Read More
About 6 years ago I started to notice that certain... Read More
Have you ever heard of "Dream Boards" or "Treasure Maps"?... Read More
Entrepreneur Entrepreneur |