Why Your Business Plan for Investment Matters More Than You Think
If you’re preparing a Business Plan for Investment, whether that’s seed funding, angel investors or growth capital – you’ll already know it’s more than “just a document.”
It’s your story.
It’s your strategy.
And it’s your financial truth all rolled into one.
The problem?
Plenty of good businesses miss out on funding not because their idea isn’t strong, but because their business plan doesn’t show investors the clarity, capability or confidence they’re looking for.
Let’s change that.
Below, I’ve answered the real questions founders ask me about preparing a Business Plan for Investment. This offers clear, practical, CFO-level guidance to help you get it right from the start.
Everything you read here comes from years of fractional CFO work, real clients, and the financial frameworks investors expect to see.
What are the most common mistakes to avoid when preparing a Business Plan for Investment?
Investors see hundreds of plans, and the same red flags pop up time and again.
Here are the big ones to avoid (all drawn directly from my notes).
1. Overly optimistic forecasts
Ambition is great. But if your projections look like wishful thinking rather than realistic modelling, investors will walk.
We’ve all seen the episode of ‘The Apprentice’ where candidate’s business plans get ripped apart by the experts – we want to avoid that!
Back everything up with evidence, assumptions, and data.
2. No clear exit route
Investors want to know how, and when, they’ll see a return.
A Business Plan for Investment that doesn’t address this leaves a major question unanswered.
3. Weak understanding of margins and cash flow
You need to know when cash moves, not just whether a profit appears on the P&L.
4. Strategy with no numbers behind it
A commercial goal isn’t enough. Show how the financial model supports the plan.
5. Ignoring risks
Seasoned founders don’t avoid risk; they understand it and address it.
Show investors you’ve thought ahead.
Can I hire help to create my Business Plan for Investment?
In short: yes, and often you should.
But choose carefully.
You don’t need someone to “make it sound pretty.”
You need someone who knows how investors think. Someone who can:
- Build realistic financial models
- Sense-check your pricing and assumptions
- Show your commercial story through the numbers
That’s why founders often bring in a Fractional CFO or finance strategist. They bridge the gap between your vision and investor expectations.
Are there UK-based consultants who specialise in Business Plans for Investment?
Yes, but like anything, quality varies.
You want a consultant who:
- Has actual sector experience.
- Knows the UK investor landscape.
- Understands SEIS/EIS.
- Is familiar with HMRC requirements.
- Has helped businesses secure funding before.
A seasoned UK-based Fractional CFO can add huge value here, because they’re used to blending financial strategy with investor-ready clarity.
Logical BI’s Pauline ticks all of the above boxes – it’s her bread and butter. If you are looking to seek professional guidance, have a look at our business planning service or feel free to book a call in with Pauline.
Can I get expert feedback on my business plan through online platforms?
Yes, but with caution. Some platforms offer reviews or investor-readiness assessments – these can be useful for an initial sense check.
However, if you’re serious about raising investment, go beyond generic online feedback.
Work one-to-one with an expert who’ll ask you the tough questions about pricing, cash cycles, and scalability.
What are the legal considerations when presenting a Business Plan for Investment?
This is an area founders often overlook, but shouldn’t.
When you start talking to investors, you’re stepping into a regulated area – particularly if you’re bringing in people who aren’t already shareholders.
Here are a few things you need to know:
- Don’t promise guaranteed returns: keep your projections realistic and backed up.
- Add disclaimers to show your forecasts are based on assumptions.
- Protect sensitive information with NDAs where needed.
- Be clear about ownership and shares: know exactly what percentage you’re offering.
Which financial benchmarks should a Business Plan for Investment include?
Investors aren’t looking for perfection. Indeed, they’re looking for clarity and scalability.
Be sure to Include these key benchmarks and metrics:
- Gross margin (ideally by product or service line)
- Customer acquisition cost (CAC) & lifetime value (LTV)
- Monthly recurring revenue (MRR)
- Burn rate & cash runway
- Revenue per employee
- Break-even point & time to profitability
The best business plans show progression, not perfection. These benchmarks show investors not just where you are, but where you can go.
Final Thought: A Business Plan for Investment Isn’t Just for Investors
Your plan isn’t a tick-box exercise.
It’s a tool to show you understand your numbers, strengthen your strategy, and run your business better.
So, don’t just write a plan for funding. Write a plan that helps you run your business better.
Ready to strengthen your Business Plan for Investment?
If you want CFO eyes on your plan (someone who knows how to connect commercial goals with financial reality) – Pauline’s here to help.
Pauline supports founders through strategic finance, forecasting, and investor readiness. She would love to chat to you if you are needing to make a business plan for investment – simply book a call on the button below or have a look at our business planning page.
