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 Business Plan Targetting

Once competed, the business plan must be targeted toward investors and lenders likeliest to be interested in backing the venture.

Investors want to back companies likeliest to exhibit the annual revenue growth exceeding 35%, while lenders extend credit to businesses with assets or orders on books which can be pledged as collateral. Among investor options are the following:

Traditional venture capitalists who invest $250,000 to $5,000,000, usually in companies at the 4/3 or 3/4 level minimum overall.

  • Early-stage venture capital funds, which invest $50,000 to $250,000 in companies, usually at the 3/3 level.

  • Investment bankers, who package fledgling businesses to go public as as to rise needed capital.

  • Informal investors, who are the wealthy individuals who put up the $10,000 to $100,000, or more needed to advance 2/2 situations.

Among lender options are the following:

  • Commercial lenders, including banks, finance companies, and other, which extend credit to companies at 4/4 level.

  • Government lenders, which include the SBA and state agencies and which also prefer 4/4 situations.

Entrepreneurs should seek to obtain introductions to potential investors and lenders before sending in their business plans.



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