Preparation for my business plan

When I am presenting my business plan to investors I have to think like an investor. Mark Cuban and Daymond John both determine if there is a need for the product or service.  I will explain to them why my services are needed and show them the huge market. Like Cuban and John, all investors are looking for ROI. I have to prepare my financials and show them how their money will multiply. Having a thorough lists of start up costs and beginning salaries will show them that I have thought the money aspect out completely. Using web tools like Google Analytics that show who my target market is will also help my business plan. There will also be a list of potential marketing campaigns and the cost of each in the business plan. Investors also look at past financial records of the business owner. I probably will not have any financial records for them to review other than my personal history. I have to make sure that this is all in order, so they can trust me with large sums of money to run a business. 

As well as making sure the business and the financials are well explained, I have to prove my product. I will have examples of production work and a demo reel that shows why customers will be interested in my company. These investors also see if there is potential growth for the company. Because of the nature of production, there is always room for growth. Wether it is more advanced technology, or employing more staff in order to tackle more projects, production companies can always expand and even franchise. 

John and Cuban also look for how they can contribute to the partnership. When i target investors I will target those who have built companies from ground up. I will also target investors who are familiar with video production work.  

Shark Tank Investors Mark Cuban and Daymond John

Mark Cuban is a self-made billionaire from Pittsburgh, Pennsylvania. It's hard to believe that he sold garbage bags door-to-door when he was 12 years old. He obtained a business administration degree from Indiana University. He founded HDNet, MicroSolutions, and Broadcast.com.  He now owns the Dallas Mavericks and Landmark Theaters.  His extreme success came from his pursuit of business ideas that he developed throughout his career. He lets his money work for him by making investments. 

Daymond John is a wealthy entrepreneur from New York City who is best known for is fashion label FUBU. His started out by selling tie-top hats in New York. He designed the FUBU logo and began sewing it onto other clothing and making a great deal of money. He and his mother mortgaged their home in order to get $100,000 start up capital. With the guidance of Daymond, FUBU obtained 350,000 million dollars in revenue in 1998. 

Both of these investors look for similar key components when deciding whether or not to make an investment. First, they determine if there is a need for the service or product. If there isn't a need for the product then they will not invest because their goal is to obtain the best ROI. They also decide wether there is a target market for this business idea. This is a key component because knowing who would be interested in this product helps to make projections of future income. The next thing they look at is the history of the person seeking investment money, and if there is a financial record of the business they take that into consideration as well. If the entrepreneur hasn't done well in the past, then the Sharks will not trust them with their money. After they determine if there is potential growth for the business, they then consider there own personal expertise to see how they can financially contribute to the idea. Preparation is also a key element in determining whether they will invest. They most likely will not invest if there are no type of financial projections. The main difference in Mark and Daymond's investment decisions deal with their specific area of expertise. Depending on the knowledge and connections they have in a specific industry, they decide whether they will be able to contribute and control a portion of the company. 

Information From: 

http://bpexpertviews.blogspot.com/2011/03/march-new-experts.html

http://abc.go.com/shows/shark-tank/bio/daymond-john/276281

http://abc.go.com/shows/shark-tank/bio/mark-cuban/727229