Reid Hoffman is a great entrepreneur and mentions how to develop a business plan in a rapid growing market of technology. His questions of reaching a massive audience, a unique value proposition and is one’s capital efficient enough are questions I have now answered when drawing up my business plan. If I am able to solidly and confidently answer these questions within my business plan I believe investors will look to invest in a service for musicians that is not currently being maximized. Reid also mentions questions to ask oneself of will one have enough cash flow? No investor will want to invest in one’s business if there is no cash flow being produced.
The most important section to the investor when reviewing a business plan would be the financials. As investors, they want to know how the large amount of money being given to a start up business will be used and become profitable. Investors need to know they are making a good choice and not placing their time, money and knowledge into a product or service where their return on investment will not be in their favor. The idea of investing is to put ones money into something that will return a higher profit. If one’s business plan does not have good financials, then the investors will not want to risk spending their money. I believe a good set of financials also shows the investor, one has done a thorough job in researching the industry as well as the market. As stated in Allbusiness.com, “First businesses live or die with cash – not profits. Second, cash makes much more sense in a plan, laid out month by month, than in your head. Putting it down on paper will help you understand your cash flow projections and any problem will become immediately apparent.” http://www.allbusiness.com/business-planning-structures/business-plans/3505-1.html
Another important section of a business plan is the sales section. The sales section is directly connected to the marketing section. In my business plan, my marketing needs to reflect the sales JM Productions will be producing. “Marketing efforts should show an ongoing increase in sales. The marketing and sales sections together are of high importance to investors.” As one’s marketing grows the sales will begin to move in the upward direction.
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