Provide a marketing strategy. Explain who your target market it is and how you plan to obtain clients, and if you already have some clients waiting in the wings for your company's funding to come through.
Having a stable of clients awaiting your services or products can be impressive to the lender. Explain how you will personally assure the company's success. Let the lenders know that you have a stake in the company and will fight for the company's health and prosperity.
In addition, management has elected to omit substantially all of the informative disclosures ordinarily included in financial statements prepared on an income tax basis of accounting, market value presentation, and valuation reports.
Accordingly, the documents contained within this confidential memorandum are not designed for those who are not informed about such matters. As I mentioned, at this stage of start-up, the prospectus is not all about the numbers. As such, it should be drafted by an attorney to offer maximum protection for your particular business. Among other things that may be recommended by your attorney, the notice should establish protections for the confidentiality of the information contained in the document, including any proprietary technology, intellectual property, patents, trademarks, etc.
It should also inform the reader of their obligations to non-disclosure, especially if a potential investor has third-party advisors with whom they share information.
Where do you see your company in the landscape of other solutions? You just need to explain where your company sits within the competitive landscape and what your core value proposition is that differentiates your company from the alternatives that a customer might consider. You can use this simple formula to develop a positioning statement: For [target market description] who [target market need], [this product] [how it meets the need].
Unlike [key competition], it [most important distinguishing feature]. Unlike [name omitted], LivePlan creates a real business plan, with real insights—not just cookie-cutter, fill-in-the-blank templates.
Your positioning strategy will often be a major driver of how you price your offerings. Price sends a very strong message to consumers and can be an important tool to communicate your positioning to consumers. If you are offering a premium product, a premium price will quickly communicate that message to consumers. Deciding on your price can feel more like an art than a science, but there are some basic rules that you should follow: Covering your costs.
There are certainly exceptions to this, but for the most part, you should be charging your customers more than it costs you to deliver your product or service. Primary and secondary profit center pricing. Your initial price may not be your primary profit center. For example, you may sell your product at, or even below, your cost, but require a much more profitable maintenance or support contract to go along with the purchase.
Matching the market rate. Your prices need to match up with consumer demand and expectations. Price too high and you may have no customers. Price too low and people may undervalue your offering. You can establish your pricing based on several factors. You can look at your costs and then mark up your offering from there. Market-based pricing. Another method is to look at the current landscape of competitors and then price based on what the market is expecting.
You could price at the high-end or low-end of the market to establish your positioning. Value pricing. A promotion plan details how you plan on communicating with your prospects and customers. Here are a few areas that you might consider as part of your promotional plan: Packaging If you are selling a product, the packaging of that product is critical.
If you have images of your packaging, including those in your business plan is always a good idea. Be sure the packaging section of your plan answers the following questions: Does your packaging match your positioning strategy? How does your packaging communicate your key value proposition?
How does your packaging compare to your competition? Advertising Your business plan should include an overview of the kinds of advertising you plan to spend money on.
Will you be advertising online? A key component to your advertising plan is your plan for measuring the success of your advertising.
Public relations Getting the media to cover you—PR —can be a great way to reach your customers. You have to make sure that the body will over the need, opportunity, solution, social change model, organizational health indicators, social impact, economic impact, strategy performance, and the financial sustainability.
Clearly define all social problems that can be addressed by your organization and how you will do it. You have to create a graphic or text that will serve as the model to help investors in better understanding how you can solve the issues. The indicators mentioned earlier will show how healthy your organization is. Even though we are more known for our professional business plan writing service we also offer other types of pitching and planning consulting that you will find enabled us to provide a comprehensive spectrum of services in the field of professional business prospectus writing.
Free Know-How for You! At BrainHive we believe that we should help founders even if we don't necessarily make money every time. In our know-how base you will find Business plan templates , Finance plan templates , business plan examples and generally every info you might ask for in your quest of writing a businessplan.
It includes a current balance sheet with a profit and loss statement, as well as any pro forma statements about future revenue and expenses. If you need a professional business or investment prospectus writer there are many aspects which you should look at so you might choose the most professional prospectus writing service suitable for you in terms of affordability and specialized experience in a chosen field of concern. You are also required to allocate the funding specified in the prospectus to the area for which it is intended. A promotion plan details how you plan on communicating with your prospects and customers.
In your capital-raising prospectus, it is important to go so far as to discuss factors that could negatively impact your business and how the company has plans to address these factors. Waiting to create your TOC until the end will save a lot of hassle with constantly changing page numbers on it as your prospectus evolves. Our staff members have been involved in literally thousands of prospectus and offering memorandum writing projects. All in, your prospectus will likely be pages or more, depending on how detailed you get and how many exhibits you provide. So, how will you write the business prospectus? More and more, prospects are using social media to learn about companies and to find out how responsive they are.
Instead, just include a short statement indicating how much money you need to raise. The looking forward plan you offer on how to provide an exit for investors is probably the single most important factor any investor contemplates before providing capital. Milestones are planned major goals. Market analysis and market research If you are going to do a market analysis , start with some research. Financial summary Highlight the key aspects of your financial plan, ideally with a chart that shows your planned sales, expenses, and profitability. Financials This section of the prospectus summarizes the past, present and future financial position of the company.
To ensure that you are solving a real problem for your potential customers, a great step in the business planning process is to get away from your computer and actually go out and talk to potential customers. Milestones and metrics A business plan is only a document on paper without a real path to get the work done, complete with a schedule, defined roles, and key responsibilities. Market A well written prospectus will detail the current and potential future market conditions of your products or services. Usually, an experienced professional prospectus writer will also be able to input additional business intelligence value and increase the chances of success for the initial submission of the business prospectus as well as lead to greater extended gains further down the road when the content of the business prospectus can be used for other pitching and planning purposes. Be clear, concise and honest about what your business goals are, and how you will provide a return of investment. What is it and how is it offered?
Strategic alliances As part of your marketing plan, you may rely on working closely with another company in a form of partnership. Likewise, demonstrating the depth of investment and commitment to the business by the founder s provides would-be investors a comfort level to proceed or to walk away.