by Austin Hale

Created on: April 20, 2009

"Give me some of your money even though I didn't earn any of it." This statement in essence is what you are asking every time you approach an investor. It's a pretty bold statement. How is the investor going to know that you will pay them back? Do you think you'll need some facts and figures to convince them? Absolutely.

Business investors are approached with hundreds and thousands of deals every year and a good business plan is the difference between financing and bankruptcy. When looking at the business plan most investors are looking for a strong executive summary, a really strong financing section, and a strong business plan overall.

If you know very much about business plans then you know that the executive summary can either make or break your pitch to an investor. The executive summary is in essence a one to two page synopsis of what you are trying to accomplish with your business. This gives the investor an excellent overview of what your vision is and how you are trying to bring about your goals. Because of this it is critical to verify that your executive summary is up to snuff.

Even with an amazing executive summary it is still almost equally as important to have a strong financing section. This stems from the fact that financing is the reason you are approaching the investor in the first place. If while reviewing your business plan the investor sees anything strange, risky or even illegal about your financing plans they aren't going to help you.

Another reason that the financing section is of great consequence to an investor is because it shows them who all you plan on receiving funds from. If you are using multiple forms of financing or multiple firms to attain capital an investor wants to know where they are on the totem pole. They need to know if things go south if and when they'll be paid back.

The business plan's overall strength is also an essential component in attaining financing. The primary motive for an investor to lend money is to not only to get paid back but also to earn a return on their investment. Most of these investors are able to look through a business plan and have a pretty good idea of whether the business will succeed or not. If the business plan is not sound they won't risk their money.

Perfecting each of these components are the key to attaining business financing from an investor. Because the executive summary, financing data, and the overall strength of the business plan are so important it would be wise to refine these parts. While many times it is difficult to score sufficient financing for a business improving the business plan is the single most beneficial action you can take to increase your chances.

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