| Once you present a business plan to an investor or | | | | use?" |
| lender, questions may begin to fly at you. If this | | | | Study best practices companies in the industry use to |
| happens, do not be alarmed! It is evidence that they | | | | become more efficient and know which will translate |
| are truly interested in your business. You can prepare | | | | into your startup, which can be implemented only as |
| for these questions by running through potential | | | | you grow, and which will not be possible because of |
| questions, like these seven, ahead of time. | | | | their conflict with your underlying strategy. |
| "Why did you choose to begin with this target | | | | "What is your unique selling proposition (USP)?" |
| market?" | | | | If someone asks what makes your new business |
| "We have to start somewhere" is not a great answer. | | | | unique, you had better have an answer. This should be |
| Consider why the costs are lower or returns greater | | | | stated explicitly in the business plan. |
| with your chosen first target market, or, better yet, | | | | "What would it take to reach break even sooner?" |
| how tackling that market first will make entry into | | | | Be prepared to defend the time you estimate it will |
| additional markets easier later on. | | | | take for the company to break even and to start |
| "Why can't competitors imitate your competitive | | | | making a profit. If funders want to see you break even |
| advantage?" | | | | sooner, know what it would take in terms of different |
| Know the strengths, weaknesses, and branding of | | | | staff, additional resources, or increased investment, but |
| your competitors to understand what will stand in their | | | | do not be too quick to push your schedule up. This only |
| way from doing what you are doing. It could be that | | | | shows funders that your estimates were based on |
| your competitive advantage is contradictory to what | | | | flimsy assumptions to begin with. |
| they are trying to do or that you have protected | | | | "What are your projections of growth based on?" |
| intellectual property in your business, for example. | | | | Be able to explain the assumptions about the market |
| "Why is your team best qualified to launch this | | | | and your company's conversion rates (of potential |
| company?" | | | | customers to actual customers, for example) which |
| Funders know that there are potential managers in the | | | | led to your projections of growth. You should know |
| job market who could be hired to run a startup like | | | | how your projections compare to other success |
| yours. Know how your chosen team combines | | | | stories in your industry and in other industries so you |
| industry, functional, and leadership experience with an | | | | can be sure there is precedent for the growth you |
| understanding of startups. | | | | anticipate. |
| "What best practices of the industry will your business | | | | |