Home
>
Strategic Planning
>
What Every Service Provider Ought To Know About Writing A Business Plan

What Every Service Provider Ought To Know About Writing A Business Plan

It's easy to lose sight of what needs to be communicated to prospective investors when writing the various sections of a business plan. Successful business owners/entrepreneurs use each section of their business plan to work up interest, to present arguments and, most important, to build trust and confidence.

How To Earn The Trust Of Skeptical Investors?

Usually some sort of upfront investment precedes starting or expanding a business, whether it be time, energy or cash. If you plan to raise cash from investors, you must get prospective investors comfortable with putting their money into your hands.

To start you must understand that investors simply want to select the best investments, period. This means choosing businesses that earn a high enough rate of return on investment to offset the risk of the investment. That said, deciding what is a good opportunity is an investor's number one challenge.

That's why investors thrive on information. Good information - good decisions, bad information - bad decisions. But, investors are often asked to invest funds with little reliable information. This, combined with the difficulty of deciphering the information they do get about various investment alternatives, leaves them fearful of getting into an awful deal and skeptical of the deals being presented.

To get comfortable with an investment, prospective investors want to see results and evidence. They want to be educated about the investment opportunity and the investment options available to them. But, they won't accept this education at face value; they want to see the evidence that supports it. Even for niche businesses.

Investors use this education to expand their research and use the evidence they gather to develop their expectations. In the end, investors merely want the opportunity that they select to match the expectations they have developed.

When investors object to an investment the objection is usually of the "Educate me?" type. Tell me your story, show me your numbers, and then prove it. Prospective investors want information that they can validate, options and risks that they can see, and to be educated about your specific business. They want to hear why you and your team are the ones that can produce the projected results.

If your business plan "educates" prospective investors on these issues, you'll win their trust. When that happens, its time to?

Build Investor Confidence - Show Why Customers Will Award Their Business To You Rather Than Other Service Providers?

Investors invest money in businesses based on expected cash flows. To create cash flow, you must first win business. That's why it is important for your business plan to show investors why customers will award their business to you at a price that allows investors to earn an acceptable return on their investment.

When potential investors begin evaluating a service business plan, they are likely to be skeptical of your ability to consistently win business. In their minds your prospects need someone to do something for them. Something that your customers either don't know how to do, don't want to do, or don't have to do.

Service provider business plans must convince potential investors of two things. First, that the customer's pain of not having this "something" done or the pleasure of having this "something" done is so great that it compels the prospect to act. Second, that the customer is willing to pay to have this "something" done.

Potential investors in service type businesses expect that your customers are feeling confused about which service provider is the best at providing the solution you offer. They may also perceive your market as saturated with so much information?some of it true and some of it not so true?that customers are finding it difficult to decipher the information they have about each solution.

As a result, investors in service type businesses often picture skeptical customers with fresh memories of negative service experiences. Moreover, they suspect that your potential customer's biggest fear is getting awful service.

To overcome this, your business plan must show investors how you plan to successfully educate prospects about your solution and convince them that you can deliver the expected results. It must present the evidence you'll use to convince customers that you will do the job right, do it right the first time, and won't fix what doesn't need to be fixed. It has to explain how you will educate the prospect about the service and the options available to them in a way that they will understand and trust.

Your plan must convince investors that you can win over prospective customers who are likely recovering from a negative experience in your market space?customers who have been promised the ultimate solution only to be disappointed. It must provide details about how the principles and techniques chosen to market your service enable customers to view you as honest. It has to help investors see how the chosen delivery method for your service ensures customer satisfaction.

The business plan must also convince investors that customers can verify the service results you promise and that prospects can easily compare the results to other alternatives. This proves to investors that prospects can determine the superiority of your service and it shows them how you differentiate your services from other service providers.

Points For Service Providers To Address In A Business Plan

In summary, if you're a service provider trying to attract investors, these are the points you must address in your business plan:

How and why prospects will pay you to do something for them rather than your competitors.

How and why they will have less hassles and it will be easier for them to do business with you rather than your competitors.

How and why customers will trust doing business with you rather than your competition.

When you address these points in a business plan with verifiable evidence to back them, potential investors will have to conclude that they would be foolish to invest in any other service provider but you.

Mike Elia is a chief financial officer and an advisor to venture capitalists and leverage buyout specialists. His business plan ebook "business plan secrets revealed" shows how to make your business the most appealing investment choice to venture capitalists, bankers, and other business investors. For his free business plan guide "business plan secrets revealed"

express cleaning service Arlington Heights ..

In The News:

The Fox News AI Newsletter gives readers the latest AI technology advancements, covering the challenges and opportunities AI presents.

ChatGPT data breach exposes personal info of users through partner Mixpanel. OpenAI confirms names, emails compromised in security incident.

Android rolls out Emergency Live Video for 911 calls, letting dispatchers see real-time scenes during emergencies. Great for holiday travel safety.

Malicious Chrome and Edge extensions collected browsing history, keystrokes and personal data from millions of users before Google and Microsoft removed them.

Google's new Call Reason feature lets Android users mark calls as urgent before dialing, displaying an urgent label to recipients using Phone by Google app.

Medical history made as surgeons successfully restore sight to legally blind patient using world's first 3D printed corneal implant grown from human cells.

Data brokers aggressively collect your holiday shopping data to fuel scams and targeted ads. Learn how to delete your digital profile before 2025 starts.

Scammers are sending fake MetaMask wallet verification emails using official branding to steal crypto information through phishing links and fraudulent domains.

Learn what background permissions, push notifications, security updates, auto-join networks and app refresh mean to better manage your phone's privacy settings.

Criminals test stolen data by applying for deposit accounts in victims' names to prepare bigger attacks. Learn why banks won't share fraud details.

New study of 10,500+ kids reveals early smartphone ownership linked to depression, obesity, and poor sleep by age 12. Earlier phones mean higher risks.

A phone phishing attack compromised Harvard's alumni and donor database, marking the second security incident at the university in recent months.

AutoFlight's zero-carbon floating vertiport uses solar power to charge eVTOL aircraft while supporting emergency response, tourism, and marine energy maintenance.

A new phone return scam targets recent buyers with fake carrier calls. Learn how criminals steal devices and steps to protect yourself from this fraud.

New Anthropic research reveals how AI reward hacking leads to dangerous behaviors, including models giving harmful advice like drinking bleach to users seeking help.

The Fox News AI Newsletter gives readers the latest AI technology advancements, covering the challenges and opportunities AI presents.

Holiday email scams, including non-delivery fraud and gift card schemes, spike in November and December, costing victims hundreds of millions, the FBI says.

Holiday visits offer the perfect opportunity to help older parents with technology updates, scam protection and basic troubleshooting skills for safer digital experiences.

Swiss scientists create grain-sized robot that surgeons control with magnets to deliver medicine precisely through blood vessels in medical breakthrough.

Researchers exploited WhatsApp's API vulnerability to scrape 3.5 billion phone numbers. Learn how this massive data breach happened and protect yourself.

Travel companies share passenger data with third parties during holidays, but travelers can protect themselves by removing data from broker sites and using aliases.

Xpeng's humanoid robot moves so realistically that crowds believed it was fake, marking a major advancement in robotics technology ahead of 2026 commercial launch.

Researchers discover phishing scam using invisible characters to evade email security, with protection tips including password managers and two-factor authentication.

iPhone and Android users can reduce battery drain and data usage by restricting Background App Refresh to Wi-Fi connections instead of mobile networks.

Scammers nearly stole an Apple account by exploiting the support system with authentic-looking tickets and phone calls, users can protect themselves with safety steps.

What Every Service Provider Ought To Know About Writing A Business Plan

Strategic Planning