Your business plan: Fact or friction?

It is never easy to put an accurate business plan together. External pressures on businesses are hard to foretell with the best crystal ball, and few businesses are totally predictable, especially if they are young and narrowly based.

But putting a business plan together for the purpose of raising equity investment is an altogether more complex challenge. If your fund-raising plan were a person it would probably be shut up in a secure institution, or at the very least would spend a lot of time on the shrink’s couch. After all, it has a seriously split personality. The plan is not just a plan for the business - and one, incidentally, whose reasonableness you are likely to have to warrant in your Investment Agreement - it is also a document designed to sell the attractions of the enterprise in order to bring in money on acceptable terms. 

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