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Most business plans in Israelwhich differ slightly from the strategic plans, are used to obtain financing.
Write your business plan as if it were aimed at investors, because even if it isn't, whoever reads it will analyze it as an investor would.
It's important that the content of your business plan is adapted to the recipient.
Your Business Plan in Israel must be a seller
Given its target audience, a business plan should be a good business case for the company, not a professional or technical one.
Investors and lenders have little interest in obtaining detailed information about the technology, and are much more interested in whether the company using the technology in question can be a viable business.
What's the right thing to do?
The main mistake most companies make, especially technology companies, is that they put too much emphasis on the technical aspect. Since the people presenting the business plan are often technical people, they talk non-stop about the wonders of their technology, systems or products.
They often say very little about important issues such as markets, marketing strategy, cash flow, profitability and growth potential. Yet these are the issues that interest investors and financiers who analyze a business plan.
Here's a description of what potential investors are interested in:
We can divide potential investors into 2 categories:
- Investor-shareholders.
- Investor-lenders.
Investor-shareholders always wonder when they'll be able to realize a capital gain on their investment, and hope that their investment will pay off handsomely.
They want to know whether the product or service meets a need, whether the market for the product is growing, whether the technology represents an important innovation or is already used by many others, what their exit strategy will be (or what the return will be and when they will cash in on it), what the possible value of the company will be at a given date....
Investor-lenders are more concerned with the risk and return of the loan. As a result, they look more closely at revenues, expenses and other aspects of cash flow - they want to know whether the product's selling price is fair given the target market, whether the company's management is capable of controlling expenses, whether the company will be able to repay the loan and grow at the same time, and to what extent the company's management is willing to assume some of the risk.
They will therefore attach particular importance to your financial ratiosThese include ratios dealing with liquidity, gearing and exposure to over-indebtedness.
A Business Plan in Israel made to measure
When preparing your business plan, make sure that its content is appropriate for the recipient. The writing and presentation of a business plan must be carefully planned. This means writing your plan in a style and using terms that are appropriate for the recipient.
When presenting your business plan, don't worry about your lack of technical knowledge. You can always provide technical information in an appendix, or ask someone with technical knowledge to explain.
Presentation is far more important. Most investors attach more importance to the presentation of the plan than to the plan itself, because the presentation tells them a lot about the company's management and how well it will be able to run the business..
Here are a few presentation tips:
- Be clear and concise. Avoid endless speeches whose only purpose is to detail what's already been written.
- Summarize each section before presenting it.
- Say things simply. Don't say anything superfluous. Your audience wants to know if your company will make a profit, and how much.
- Keep it short. Don't give a 50-slide PowerPoint presentation.
- Before presenting your plan, find the answers to all the questions you might be asked about the company.
And, of course, make a test presentation to an audience that will be won over to your cause.This will give you the confidence to present yourself to a wider audience, such as your work team or family. This will give you confidence, and give you an outside view of your presentation.
