Top Questions Business Plan Investors Ask

Business planning is essential for any business, especially if you’re looking for external investment. When pitching your business idea to investors, they will ask you many questions about your business and its operations.

Receiving those questions from investors means that they are interested, yet the more important question is whether you are ready with your answers to your business plan or not. Therefore, it is vital to have a professionally written business plan that outlines how the business can fill a gap in the market and the opportunities it will bring.

By hiring a business plan writer, business owners will be fully prepared for any of these questions investors may have. Professional business plan writers know exactly what needs to be included in a business plan to make sure it stands out to potential investors and answers any possible questions they may have regarding the business. So, let’s look at some of the top questions business plan investors typically ask:

#1 Is There a Skilled Management Team?

Investors like to fully understand the management team behind the business, just as much as understanding more about the product or services. Investors will want to know if the team has the right set of skills and experience to grow the business. Some frequent questions investors may ask include:

Who are the founders & key leadership team?
What relevant experience does this team have?
Is this team capable of executing the business plan?
What are the plans to scale & grow the business in the future?

#2 Is There a Market Opportunity for the Business?

Investors will be looking for how big the market potential is for the product and services you plan to sell. They would also like to see how the business will grow in time and try to understand their potential return on the investment. To ensure these answers are readily available, a well-written business plan can provide actual data relating to the percentage of the market that the business plan captures.

“What do you need to start a business? Three simple things: know your product better than anyone, know your customer, and have a burning desire to succeed.” — Dave Thomas, Founder of Wendy’s

#3 What Has the Company Achieved So Far?

A crucial factor for investors that indicates whether the company is worth investing in is that if the business would have early traction with its customers or not. If the answer is yes, the business will be more likely to receive funding from investors or venture capitalists.

To answer this question, business owners must ensure they clearly outline this in their business plan with evidence to show early traction. A business plan writer can help to show any early traction and what the business has achieved to date in a way that appeals to investors.

#4 Do the Founders Understand the Financials & Key Metrics?

Investors will want to know if the founders understand the financials and key metrics of the business. Therefore, business owners will need to show that they have complete control over the business’s trajectory. An effective business plan can provide this information and a thorough understanding of its financials and key metrics.

Please contact me here to discuss what we can do together to make your business plan right and appealing to the investors. If you are in Vancouver, we can meet for a business plan discussion. If you are located outside of Vancouver, I will be happy to jump on a Zoom meeting and discuss your business plan needs. As a Vancouver business plan writer, I work with clients from all walks of life.