There comes a time for many businesses when the decision is made to attract investors. No matter the age of the business, the proper way to approach soliciting investors involves the creation of an investment prospectus: a document that describes a financial security to potential investors and contains information about the company, how the investment will be used and the financial risks that accompany an investment in this particular company. For new companies, the time to seek investors may come as the company is starting up, as outside investors may be needed to meet the full vision for the new business. For established companies, this may come at the time the company decides to go public — that is, to offer stock publicly in the stock market. A company that is already well established and on the public market may need additional investment down the road and may open up new investing opportunities or change its stock offerings. In the case of an informal investment prospectus for a small business looking for individual investors, for example , the components are still expected to be present.
A prospect is a potential customer who has been qualified as fitting certain criteria outlined by a company based on its business offerings. Determining if a contact is a sales prospect is the first step in the selling process. Once you've determined that the person meets the criteria, they're a prospect and can move into the next phase of the selling process. Learn more about prospects to tune up your selling process and improve your customer relationship management. Companies deem potential customers as prospects once they've been qualified as possessing predetermined characteristics.
A business plan is a foundation, or rather a springboard, towards the establishment and growth of a new business. A business plan is an essential tool for companies raising capital —and your business plan needs to be investor-ready. An investor-ready business plan is a document that has been professionally prepared to meet the needs of both venture capitalists and angel investors. They will want to see specific information in your well-crafted plan that allows them to feel comfortable investing money into your business.
Tasks, to-do lists, meetings, and more. Amidst that rush, the idea of writing a good business plan—much less following a business plan template—often feels time-consuming and intimidating. After all, when done right, business plans have enormous payoffs.