The Business Plan Controversy
I spent most of the past week in Arizona attending the Arizona Angel Investing Conference. I’ve been to a few other conferences but was quite impressed with the content of this one. While there, I had the great opportunity to network with many influential angel investors in Arizona, and the feedback that I received was quite interesting.
When an entrepreneur is seeking capital for a new business venture, most people in the entrepreneurial community would suggest they write a business plan to submit to investors. However, how many investors really enjoy reading an extensive 20-25 page business plan? I believe that most investors MAYBE read the first page and then decide whether they will skim through the rest or not. That fact of the matter is that investors don’t have the time or the interest to read an entire business plan.
What does this mean? Entrepreneurs need to do a better job of appealing to investors through either an executive summary or a well-rehearsed elevator pitch.
Understanding that this is the case, FundingUniverse.com is providing these types of opportunities to appeal to angel investors. As mentioned earlier, we’ve already started our quarterly Speedpitching Events. In the near future, we are launching “PodCast Pitching” and “Video Pitching” that will allow entrepreneurs to record their elevator pitch and get it in front of investors through voice or video recordings.
This might be the greatest blog I’ve every seen. Except forJeff’s. They tie for first. I’ll be reading this stuff to my kids, so keep it clean!
Take care. Judd
Hey Brock,
Nice blog. I like the improvements you’ve made. As far as your post on business plans goes, I think you’re right on. The best entrepreneurs - and those that will end up with funding - will be able to synthesize their understanding, knowledge, energy, and excitement about their business into a short but compelling statement. Like any marketing piece, the business plan needs to get the investor’s attention and move him/her to action.