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If you’re looking to raise capital, you must have a professional business plan. And if you haven’t finished your business plan, you’re in luck… because for a limited time you can download a proven business plan template for just $97.

Learn how to write great business plan in 8 hours or less!

You must view the ten sections of a business plan not just as due diligence, but as an opportunity to capture the heart and mind of the investor. Each section has a special purpose.

The “hook” of your business plan. This section concisely explains your product, the market size and need, and the company’s unique qualifications to fill those needs. The best executive summaries quickly make busy investors want to read the rest of the plan.

Your opportunity to put your accomplishments front-and-center. A timeline of milestones proves that your company or management team have executed on a previous game plan and describes your company’s “unfair competitive advantage” (such as proprietary technology).

Proof that you know your industry inside and out – including the many overlapping industries in which your business competes. Include full industry figures from reputable data sources, but also include niche trends. Be specific.

A map of your customer relationships. Here you must demonstrate that you know your customer better than any other company does. Include niche market trend statistics, demographics, psychographics, and all pertinent customer information.

Proof that you know your opponent. Your competition is not only public companies that operate in your industry. Your real competition is any service or product that a customer can use to fulfill the same needs as your company does – including actions by the customers themselves. Soberly lay out the strengths and weaknesses of your competition.

The Four P’s: product, promotions, price and place. Fully explain your product; how you will promote theproduct; your pricing; and your distribution channels. Be as specific as possible to show investors you know how to moveproduct into customers’ hands.

A description of how you service customers. Include your company’s everyday activities (short-term processes) and long-term processes. Include projected dates of product releases, revenue milestones, partnership formations, customer contracts secured, future funding rounds and IPO, and hiring. Here, investors are looking for context for “exits” or payout for their capital.

The engine of your company’s success. Include biographies of your team members and the Board of Directors. Include past accomplishments that demonstrate an ability to execute on a plan and grow a company. If there are management gaps that are crucial to the early operations of the company, fill them before completing your business plan.

Investors spend the most time on the financial plan, as it details how your business will reap great rewards for them. Your pro forma statements (future projections) must include dates for market penetration rates, operating margins, and employee head counts, acquisitions, mergers and IPOs. Exercise absolute realism.

Overflow documentation. This section backs up the claims made in the executive summary, financial plan, and the rest of the sections. Include technical drawings, patent information, letters from partners and/or customers, a thorough list of competitors, and/or a list of key customers. Growthink business plans have raised $1 Billion in funding since 1999. And for a limited time, you can download Growthink’s proven business plan template for just $97.

Learn how to write great business plan in 8 hours or less!

What are the common characteristics of hard money?

Hard money loans have much higher rates compared to other financing options. How high? Hard money rates in the ‘teens are common with some notes financed at 11 or 12 percent. Hard money loans typically have high lender fees. Multiple points, underwriting and processing charges are typical as well. Hard money loans require a hefty down payment or equity, as much as 50 percent in some cases. These loans are also for very short terms, anywhere from 90 days to two years is a typical term and used only long enough to acquire the property, renovate and flip.

Okay, so if the loans have ultra-high rates, require a large down payment, are expensive and are short term, who would ever take such a loan? Real estate investors buying a property that is in such poor condition no traditional lender would approve the project. You’ve probably experienced that in the past when an appraisal was performed on a home that had some major structural issues such as a faulty foundation or severe roof damage. Perhaps even the home couldn’t be repaired and had to be razed.

Investors take hard money as a temporary fix to get the property below market, complete the repairs then sell for a profit. Once the repairs have been made, the property is then eligible for traditional financing. Hard money isn’t the answer for most real estate investment transactions, but it’s important to understand their place in the industry. At Velocity we’re here to bridge the gap between banks and hard money lenders.
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