Why Didn’t My Business Plan Attract Funding?

The competition to attract investors and their money can be fierce. These folks receive countless pitches and inquiries and will typically only consider a tiny fraction of those requests. It can be a bit of an uphill battle, but with diligent research, careful planning, and a professional business plan, you can greatly increase your odds that you will be considered.

Your business plan is your introduction so it needs the wow factor that will catch the eye of an investor. The best business idea, the best product, the best customer base could all fall by the wayside if your plan doesn't impress the reader.

Investors tend to work backward. They look for reasons to say no and who can blame them? It's their money that you are seeking and, normally, they want to protect it. Let's take a look at why some business plans fail to secure funding.

Your Competition Isn’t Identified

One of the most common mistakes that entrepreneurs make when writing their business plans is failing to identify their competitors. The reason? They have the impression that writing about the existence of direct or indirect competitors somehow weakens their own business presence. In truth, it's completely unrealistic to think that your business, no matter how unique, doesn't have competitors. What investors want to know is who these rival businesses are, what they do, what part of the market they possess, and how you are going to compete with them.

Your Marketing Strategy Is Weak or Non-existent

Your business plan should explain clearly and in significant detail how you will market, sell, and distribute your goods and services. It’s not enough to have a great business idea; your business has to be sustainable.

Investors are savvy, financial experts and are very detail-oriented. Be familiar with the types of questions that they tend to ask. Your marketing strategy needs to identify who will buy your products, why they will purchase the goods from your business, and how you will deliver those goods and services. Investors will also need to know your plan on how you are going to attract and retain customers.

Your Business Doesn’t Fill A Need

Your plan is destined for rejection if you haven't made it clear that the goods or services that your business offers fills a need or solves a problem. Identify the gap in the market, the thing that customers need but isn't available. Meeting customers' needs and wants is what business is all about, so show potential investors that your business does exactly that.

The Plan Is Too Technical And Difficult To Follow

Plain, simple, business language is always a winner. Business plans that contain excess words, jargon, very technical terms, and unidentified acronyms are difficult to read and can leave an experienced reader with the impression that you're trying to use sleight of hand to cover a lack of research or pertinent facts. If you have questions or would like to inquire about having a professional business plan written for you, please contact me here. I am looking forward to chatting with you!