To raise capital, either equity or debt, your company will need a business plan. This report focuses on items deemed necessary by most potential investors and lenders.

Basically, your business plan should describe how your company started, its history, the present need, and future potential. Investors must feel comfortable that your company and the opportunity you are presenting are real and have a bright future. Investors and lenders both like to see tangible assets, productive long-term relationships, experienced management, and a large untapped market. The following items should help your company build the credibility it needs:

Company History. Include past accomplishments, milestones, experience of the founders, and why the product/service was unique enough to start a company.

Company Assets. List the tangible assets of the company; e.g. equipment, facilities (if leased give details), etc. Also list the intangible assets: trademarks, patents, copyrights, proprietary information, etc.

Company Advisors. Your team should include your attorney, accountant, and other consultants with whom you have discussed operations in the past. Ideal advisory board members would include individuals who have accomplished what you want to accomplish namely, obtaining outside financing and expanding your business. Also include your Board of Directors.

Strategic Relationships. Who can sell your product or service? Have they done business with you in the past or have sold a similar product/service in the past? Are there any joint venture agreements?

Operations. This section shows the investor/lender how you make your product or offer your service to your customers. List your top suppliers and top customers. Always get their permission in writing before listing their names, addresses, phone numbers, approximate percentage of business, and permission to call.

Market Analysis. There are three main questions to answer. What is your market? Does your product/service serve that market? And do you have a management team capable of getting your product/service to the market? Items to provide in your market analysis are: estimated market size, expected market growth rate, micro- and macro-economic factors affecting the market and your product/service, description of competitive advantages, and a description and analysis of your competition. The bottom line is this: what is the opportunity (market niche) and why will you be successful in capturing that opportunity? Third party verification of management’s market analysis is recommended.

Marketing. What strategies will you use to capture the opportunity? Rather than having to sell your product/service, marketing focuses on having potential customers recognize the need for your product/service and providing them with a solution. This is generally the most important section of the plan and should concentrate on at most three avenues with milestones and flexibility to change if results are not satisfactory. The bottom line is this: why should someone invest/lend money to your company without a strategy to attract customers?

Key Management and Personnel. This is almost as important as the Marketing section. Potential investors/lenders will ask some basic questions. Is the management team complete and does each member have their own capital in the company? Are the founders willing to dilute their interests in the company? Has management been through a similar situation? Does the company have a list of people to hire upon receipt of funding and if so, are they willing to come on board to facilitate growth and increase the likelihood of success? Are managers and key personnel willing to work for a small base salary with options to purchase the company's stock as the main component of compensation? Always address management deficiencies and a profile of the ideal talent that can fill those deficiencies.

Product/Service Description. This completes the picture of your company. It should be brief and well presented. Compare how your product/service is superior with, hopefully, barriers to entry of other firms with deeper pockets.

Executive Summary. This should be the last component and the most effective part of your business plan. It should be brief and provide a reason for the potential investor/lender to read the entire plan. The summary should begin with what is known as a summary statement. In one concise paragraph, tell them why they should read the rest of the plan by getting them interested in the opportunity and how your product/service will capture that opportunity.

The founders of Richest Capital have helped many start-up companies write their business plans well enough to obtain financing. If you would like help on your business plan, or ideas on how to obtain financing, please email M. J. MDirector3.