When it comes to funding a business, a great idea isn’t enough. Investors want a clear, compelling roadmap that shows how your company will grow and deliver returns. That’s where a well-written business plan comes in.
Below are the key components and practical tips for writing a business plan that investors take seriously.
1. Start With a Strong Executive Summary
The executive summary is your first impression — and it could be the deciding factor in whether someone reads the rest of your plan. Investors are busy, and this section should tell them everything they need to know upfront:
What does your business do? What makes it different? Who is your market? How will you make money? How much capital are you seeking?
Even though it comes first, it’s often easier to write this section last, after all other parts of your plan are complete. Keep it brief, but ensure it includes sufficient key information to capture an investor’s interest.
Define who the user will be such as a lender, an investor or an owner thinking about expansion,
2. Define Your Company and Mission
Provide a detailed yet straightforward description of your company. Explain your legal structure, history, location, and ownership. More importantly, communicate your mission. What drives your company beyond just revenue? This section should also define your long-term vision, providing investors with insight into what kind of company you aim to build over time. Determine the growth rate of projections as well as prior growth rate of the business if applicable to see if there is some correlation to these two growth rates to reality.
3. Demonstrate Market Understanding
Investors want to know that there’s a real demand for what you’re offering and that you understand your market well enough to compete in it.
Break down your target customer: who they are, how they make purchases, and what matters to them. Back it up with data on market size, growth trends, and competitor analysis. Be realistic. Show where your business fits in and how you plan to compete.
4. Highlight Your Product or Service
In this section, you need to explain what you’re selling in practical terms. What problem does it solve, and how is it different from existing options? If applicable, include information on patents, proprietary technology, product lifecycle, or development roadmap. Investors will evaluate your offering not only on innovation but also on its market readiness and scalability.
5. Outline Your Sales and Marketing Strategy
A good idea is only valuable if you can effectively bring it to market. Walk them through your pricing model, your main sales channels, and your marketing approach. If you already have early traction or data from test campaigns, include it. It helps show that your strategy is working or has potential.
6. Present Clear Financial Projections
This section shows investors whether your business can generate sustainable returns. Include a 3–5 year forecast covering revenue, operating expenses, cash flow, and profit margins. Use realistic assumptions based on data: how many customers you expect to acquire, what they’ll pay, and how quickly your costs will grow.
If you’ve already generated revenue, show historical activity alongside projections. The more grounded your financials, the more confidence investors will have. Then compare your results to similar businesses to determine if your amounts are in line with similar businesses in your sales level.
7. Showcase Your Team’s Capabilities
Investors want to know that the business is being led by individuals who understand the industry and possess the necessary skills to execute the plan. Use this section to introduce your leadership team, their experience, and the roles they play. If you have advisors or outside consultants, mention them too. A capable, well-rounded team increases confidence in your ability to implement the strategy and navigate challenges.
8. Make a Direct and Specific Funding Request
A well-defined funding request demonstrates that you’ve thoroughly considered the financial aspects of your growth strategy. Clearly state how much capital you need, what form it should take (equity, debt, convertible note), and exactly how the funds will be used. If applicable, include the anticipated return on investment or exit strategy.
9. Include an Appendix
The appendix allows you to provide supporting documents such as relevant financial statements, research findings, product images, founder resumes, permits, or contracts. It’s optional, but it can make your plan feel more complete and more credible.
Start Your Investor-Ready Business Plan With Expert Help From Grigsby Valuation!
Grigsby Valuation works with startups, small businesses, and growth-stage companies to develop professional, data-driven business plans through our specialized business planning services, tailored for serious conversations with investors. Led by certified experts in business valuation and financial forensics, we deliver investor-ready documents supported by credible projections and in-depth market insights.
Contact us today to get started with a plan tailored to your funding goals and business strategy.