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Business Plan InformationIncorporating Capitalist
Feedback into Your Business Plan
by:
Dave Lavinsky
Investors, like the rest of us, have some tastes. One capitalist
may love a construct and/or business plan patch the next may hate both. It is important to understand this as business plans are working documents and are always undergoing iterations.
Management teams must not rush to incorporate each potential investor’s comments. Instead, have some investors, partners and different business colleagues review the plan and provide feedback. Then incorporate common concerns and probe different comments to determine if they are valid.
Always try to understand the explanation
behind an investor’s comments. For instance, an capitalist
may poke holes in a business plan if it doesn’t have enough funds to fully fund the opportunity. In this case, the investor’s criticism is alone for them to save face.
However, if you are hearing the same feedback from multiple investors, it is probably valid. In such cases, be humble. Tell investors that you appreciate their feedback and modify your strategy and plan appropriately. You may then be able to re-approach these investors with great success.
Many investors have significant in operation and finance
experience and can quickly and with expertise
find potential flaws in a business plan. Seek out investors who have such experience, and be open to their suggestions. Simply don’t take one point of feedback and blindly follow their advice. It is as well important to note that even as the most eminent and largest public companies have Boards that provide similar feedback and advice, so don’t take criticism and feedback as a sign that thing
is wrong with your venture. Rather, use it as a launching pad for an even as stronger business.
Simply about the author:
GT Business Plans has developed over 200 business plans for clients that have conjointly raised over $750 million in financing, launched many
new product and service lines and gained competitive advantage and market share. GT Business Plans is the sister site of GT Venture Capital
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