State Your Business Plan Objective
You’ve just presented an excellent elevator pitch and the essential facts about your business. Now that you have their attention, tell the reader why you have asked them to review your business plan. A strong close to your introduction should answer the question, “Why should I continue reading your business plan?” The general guidelines and overview on this page will serve as a template for this section of your business plan.
Business plans are submitted to different organizations and people for a variety of reasons. The first thing the recipient has to determine is whether your business is a match for what they do. If it’s not, they’ll stop reading right away. Make it easy for them to determine that it is a match. Then go a step further and show them why it’s a good match.
Start with a concise statement of why you are submitting this business plan. Then hint at why they should fund your business. (This might require some modification if you are sending your plan to both a lender and a potential equity investor.)
The content outline below provides several possible scenarios. Keep this section brief, but establish your credibility and show that you’ve done your homework. (Note that this subsection of your plan is likely to be shorter than the instructions.)
Include a sentence or two that addresses each of the bold headings below. Use the examples to get started on writing an objective statement for your business plan.
Business Plan Outline for Your Introduction Closing:
- The Goal of Your Business Plan Submission
- Why You are Submitting it to this Organization
- Credibility Statements
Having a well-written objective will help you to focus on who you should be receiving your business plan. “Why am I submitting my business plan to these particular people?” is a question you should always be able to answer. After all, you really want to submit your plan only if it has the potential for helping you achieve your objective. Being focused and purposeful will help you to get your business funded faster and with less effort.
What are you aiming to achieve by submitting your plan? (examples shown in quotation marks)
“This business plan is being submitted to be considered by your organization for an equity investment.”
“This business plan is being submitted as part of an application for a business line of credit.”
“This business plan is being submitted as part of a loan application for startup costs and working capital.”
“This business plan is being submitted as part of an application for a loan to acquire inventory.”
“This business plan is being submitted as part of an application for a loan to acquire equipment.”
Note: If you’re seeking a loan or investment, most lenders or investors will expect your business plan to include a clear indication of how much you are seeking. For equity investments, they will also expect to know what percent of your company you are prepared to give up in exchange for the investment. If it’s an investor you’re pitching, you’ll be setting the high mark of what you can expect, because the negotiating starts with your number. Carefully consider whether and how to include this information in the plan, versus discussing it in person in advance or after the fact. There are no ‘right and wrong’ rules about this. It’s most important to know the expectations of your audience and provide what they need and expect. If you don’t provide the information in the business plan, be ready to answer to that question when it’s asked.
Why this organization specifically?
“This plan is submitted to you specifically because XYZ Ventures is a lead investor in startup companies, particularly in the (the type of business presented in this plan).”
“Because ABC Bank is a leading SBA lender with a history of working with local companies, your bank was specifically selected to receive this plan.”
“PDQ Funding has an excellent track record for providing new businesses with equipment and startup funding, and that is why we are sending this business plan to your organization.”
Close with positive credibility statements.
About the Plan
“The business plan shows that the company will be profitable after 12 months and will be able to repay the loan on a timely basis.”
“The business plan shows how the company will grow and profit, creating substantial shareholder value.”
“As the business plan reflects, the company meets all of the qualifications for an SBA micro-loan.”
About You or Your Team
“Our experienced leadership team has more than 20 years of collective industry experience and has been instrumental in the successful launch or operation of 3 related businesses.”
“I have built a solid record of strong leadership and proven results in the (type of) industry after having progressed over the past 10 years from manager, to senior manager, to regional manager.”
“I have worked in managerial roles for two successful startups and have filled virtually every role in this type of business, including responsibility for day-to-day operations.”
“I have a solid credit history and will be using the loan proceeds for hard assets, which can be used for collateral.”