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Angel Investors and Appropriate Business Planning

One of the most important things to focus on before you start to seek angel investment is to have a properly developed business plan. In many instances, if you are working with a single investor, then you will most likely not need to have additional specialized documents drafted in order to receive a capital investment for your small business. As such, it is important for you to focus on having a well put together plan that not only showcases how you intend to use the money that you are seeking, but also how much money you intend to make once you have your business up and running. If you have a business that is already operational then you are going to need to present the current tax returns and financial statements for your business. However, it should be noted that these financial statements need to be provided separate from your business plan and they should be prepared by a certified public accountant.

If you do not know how to properly draft a business plan then it you may want to work with a consultant that specializes in producing these documents specifically for investors. There are many different types of business plans, and a well qualified consultant can assist you in putting together a presentation that is appropriate for a private funding source. Additionally, they will be able to provide you with the necessary risk disclosures that are required by some states as it relates to investment related documents.

One of the most important aspects of your angel investor focused business plan is to have well developed forward looking financial statements that will effectively provide an overview of the anticipated profits and cash flow of the business. A well written plan also has a number of exit strategies outlined coupled with a forward looking valuation of the business in each of its first five years of operation. A formal valuation of your business is especially important if your business is already in operation, generating profits, and producing a positive cash flow. Your CPA or an expert within your field will be able to assist you in developing a business valuation model for your existing business if need be.

In closing, it is very difficult to find outside investment for your business. However, you can increase you chances significantly if you are able to provide a concise, coherent, and well developed business plan to a potential angel investor, venture capital firm, or private investment group.

Is Writing a Robust Business Plan an Issue for You?

This article on business profile offers a summary of writing IT company business plan, in addition to providing the visitors a look towards what they are required to consider while opening or running an IT firm, and the fruitful ways of accomplish your goals.

An ideal business profile deals with the following sections:
• Executive summary
• Business background
• Management
• Achievements

Executive Summary: The summary of the business is listed in the front but is usually created in the last as it covers all the aspects of the business, and since the your ideas might change with time, write the other sections before coming down to it. Ideally, the summary must be limited to one page and provide a brief of all of the vital points in the other documented parts of the business plan. The motive of this action is to successfully grab the interest of audience plus provide them the encouragement of going through the complete strategy. You can also include the short introduction of your business structure on the page.

Business Background: The business background content covers a quick track record with a list of accomplishments till the current time. If you are just starting a company, this section can contain your personal achievements and how you can contribute to the industry at large with your innovative ideas and spirit of entrepreneurship.

For an IT company, you can cover points like:
• What’s your knowledge of the IT industry?
• Do you have any business knowledge?
• The changes you can bring?
• What you want to accomplish by opening the firm in short as well as long run?
• Talk about the place where your company is going to be positioned.
• The plus factors of the product/service you are going to launch.

Avoid getting too caught up with information that isn’t going to interest any one. Prefer keeping your discussions wide-ranging, moving along the details that are going to help you secure a position in the competitive industry. Be sure to set your business apart from the opposition. Have a clear perspective and let the people know about your ideas in a clear way. Ambiguous statements can lead to unsuitable first impression of your work.

Management: in addition to the different people who are or will be running your IT business, you can also list different personal and business support networks you have access to as these can impact your business success directly. Lawyers, accountants, competition business owners, board advisors or even friends who’re experienced can be excellent for helpful guidance.