November 23, 2020 is a daily online magazine covering small business news. We help entrepreneurs transform ideas and innovations into greatness.

Articles for Entrepreneurs


Raising Money


The Role of a Business Plan When Raising Money

Most new entrepreneurs who attempt to raise money spend a lot of time writing their business plan. But the reality of raising money is that business plans play a much more limited role than most might think. In this article, we discuss the role of business plans in raising money.

The role of the business plan in raising money is overrated.
(article continues below)

Business plans are too long and nobody reads them. Even executive summaries of business plans tend to be dry because they summarize lengthy business plans.

Accordingly, what entrepreneurs need is a multi-page colored brochure that sells investors on why they should even bother to look at the longer business plan.

This is in effect a marketing document and so it should have all the same attributes that good marketing pieces must have to rise above the all the other noise that's out there.

Typically, entrepreneurs don't create such a sales piece because they are completely exhausted after writing the business plan. But I guarantee you that most investors won't get excited if you hand them a massive business plan.

They need a teaser that sells them on the investment opportunity and they need to talk to you and see your investment presentation.

The bottomline? If you do write a full business plan prior to raising money, your work is not over. You still need to transform the contents of that business plan into something that will excite the investors and get them interested enough to prepare an investment term sheet.

Related Articles

Want to learn more about this topic? If so, you will enjoy these articles:

Financing Startups
How To Attract Investors
Investor Turnoffs
Using Personal Savings to Start a Business

Conversation Board

Please share your comments regarding raising money and the role of the business plan in obtaining funding. We welcome all comments, tips, advice and suggestions.

Questions, Comments, Tips, and Advice  Code Image - Please contact webmaster if you have problems seeing this image code
Problem Viewing Image
Load New Code



Additional Resources for Entrepreneurs

Search Engine Marketing

Social Marketing Optimization

Business Forms

Business in the Jungle - Business in Fiction - Negotiating

Radio Ad Costs

Newspaper Advertising Rates

City-Specific Resources for Entrepreneurs

Small Business Insurance

Global Entrepreneurship

China & Entrepreneurs