Too many entrepreneurs send out bum business plans and wonder why they never get funding. Remember this: Your business plan has less than a minute to catch the eye of a serious investor.  They’ll likely end up in the trash bin as I interviewed a few Private Investors in our area.

He said that a well-written business plan will stand out from the pack. He looks for succinctly written plans
printed in an easy-to-read type font. Sherwin, who read hundreds of business plans each year, said: “The lighter, the better. I always leave the weighty, two-pound ones until last.”

Sherwin said that although you’ll need a detailed company history, marketing summary, and management biographies, the most important element is the executive summary. It should be clear and concise, yet comprehensive.

Your plan should also explain the benefits of investing in your company rather than competing firms. Consider the investor’s perspective and include all the perks beyond making money. For instance, if your product is really popular, your investors will benefit from the press coverage it generates. Some investors
like to be invited to glitzy parties and industry trade shows when they have money in a high-profile deal. List all specifics that will make your company more attractive to investors. Good products and great writing aside, luck and personal contacts play a significant role in raising capital.

Timing is essential. Your company has to be poised for growth to appeal to venture capitalists. Because people lend money to people, not companies, picky investors put a lot of weight on where the deal came
from. “The source of the deal is very important to a venture capitalist.

So if you want your business plan to land on the right desks, take advantage of every possible contact. Attorneys, accountants, and successful business people can often help you get your business plan to the appropriate investor. Then it’s up to your plan to be a magnet for money.