Investors and loan providers need to know that you have a solid understanding of the trajectory of your business. You need to prove that there is an attainable and sustainable need for your solution, that you have a strong business strategy, and that your business can be financially stable.
Start the opportunity chapter by describing the problem that you are solving for your customers. What is the primary pain point for them? How are they solving their problems today? Maybe the existing solutions to your customer`s problem are very expensive or cumbersome. For a business with a physical location, perhaps there aren`t any existing solutions within reasonable driving distance.
Are you still unsure whether a business plan is worth the time and investment? Can`t you just jump right into starting and running your business? You could, but you`ll be missing out on some key benefits that a business plan provides.
This means having the right financial statements, forecasts, and a digestible explanation of your business model available for potential investors. Writing your business plan helps you put all of those pieces together and create connections between them to tell a cohesive story about your business.
If you say your management team is experienced and qualified to help the business succeed, you have to support that claim with resumes that demonstrate that experience. It`s easy to lose credibility – and investors – if you`re making claims you can`t fully support.
Highlight the key aspects of your financial plan, ideally with a chart that shows your planned sales, expenses, and profitability. If your business model (i.e., how you make money) needs additional explanation, this is where you would do it.