How to Write a Business Plan for Investors?

Do you think investors only care about numbers? Think again.

A business plan isn’t just about figures and forecasts for investors—it’s about telling a compelling story that makes investors believe in your vision.

While times have changed and decisions move faster, one thing remains the same: investors still care about business plans. The key is knowing what truly matters to them and how to present it effectively.

That’s exactly what this blog is about. We’ll break down everything investors look for—from key facts and structure to essential documents and the ideal business plan length.

Let’s dive in and explore a business plan for investors in detail.

Fact: Investors still care about the business plan

Many entrepreneurs believe that investors don't care about a business plan. They think investors only want a quick pitch or just numbers on a slide. But let me tell you–this is a serious misunderstanding.

Remember, investors still care about the business plan. But they don't care about your 50-page document with fancy formatting. They don't want fluff, long-winded explanations, or generic templates. What they do care about is whether you've truly thought through your business.

A business plan isn't just about writing—it's about thinking. Investors want to see if you have a clear strategy, a scalable business model, and, most importantly, if your financials make sense.

If you've understood this fact, your obvious next question would be….

"What really matters to investors?"

Well, here's the secret: A great financial model tells a better story than the business plan itself.

A strong business plan supports your financials by showing how you'll achieve the revenue and profits you're projecting. But at the end of the day, if your numbers don't add up, no investor will take you seriously.

Business plan for investors (structure to follow)

Let me make this simple for you. A business plan for investors doesn’t need to be flashy or overcomplicated. What really matters is that it presents all the key information investors look for.

So here’s what you need to include:

1) Executive summary

Even though the executive summary is the first section of your business plan, it's usually written last. It's a concise overview of your business, covering what you do, your target market, revenue model, and funding needs. Investors often read this first—so make it strong.

2) Business description & market opportunity

Explain what your business does and why it matters. Show that you understand the market size, trends, and competition. Also, make them aware that you’ve done market analysis and have data-driven insights to back up your claims. Investors want to see if there's real demand for your product or service.

3) Business model

How do you make money? Investors need to know exactly how revenue flows in, what your pricing strategy is, and how scalable your business is. A weak business model is a deal-breaker.

4) Roadmap & growth strategy

Investors don't just want to see where you are today—they want to know where you're headed. Lay out your short-term and long-term goals, milestones, and expansion plans. A clear roadmap shows them you have a vision beyond just launching.

5) Competitive advantage

What makes you different? Whether it's unique technology, branding, partnerships, or a cost advantage—you need a strong reason why customers will choose you over competitors.

6) Financial plan & projections

This is the most critical part. Investors care about numbers. Provide realistic revenue projections, expected costs, profit margins, and cash flow. A well-structured financial model tells a better story than words can.

7) Funding requirements & use of funds

Clearly outline the amount of investment you need and provide a breakdown of how you'll allocate the funds. You can specify portions for inventory, raw materials, marketing strategy, operational costs, salaries, and other essential expenses. Investors want to be assured that their money is being used strategically to fuel growth—not wasted on non-essential spending.

8) Exit strategy

Investors don't just want to put money in; they want to know how and when they'll get their return. Whether it's an acquisition, IPO, or buyback plan—this section gives them confidence in your long-term vision.9

9) Appendix

The appendix isn't mandatory, but you add extra documents like detailed financial tables, product blueprints, legal agreements, or market research reports that investors might want to review.

Now, we’ve cleared how to create a business plan for investors. Now, let's explore what investors actually need in a business plan.

What investors actually look for in a business plan

If you think investors are simply looking for a perfect, risk-free, and money-making business plan, you’re mistaken. Remember Henry Ford, the investor in the Ford Motor Company, said —“A business that makes nothing but money is a poor business".

Investors aren’t just focused on the final profits—they want to see a solid strategy, long-term vision, and growth potential. They know no business plan is ever 💯 perfect.

So why do they examine it so closely?

Because a business plan tells them more than just an idea—it shows them that you’re serious and actively working on it. With years of experience and reviewing countless business plans, investors can quickly assess whether your idea has potential or not.

What really matters to them are the numbers—whether your business can generate profit and sustain itself. They also understand that a business plan isn’t a final blueprint but rather a strategic document based on assumptions that guide the business and manage risks.

So, what do investors really want to see beyond the standard sections? Here’s what truly matters to them:

1) A business model that makes sense

Investors are interested in funding ideas that can generate revenue and scale. Your plan should clearly define:

• How you’ll make money–inform your audience about your revenue streams, target market, and sales plan
• How do you acquire customers? Informs investors about your marketing and sales strategy.
• How will you scale, including your expansion plan and cost efficiency

If they can’t see the logic in how your business grows, they won’t invest.

2) Market opportunity backed by real data

It’s important to understand that writing a business plan is not just about sharing an idea on a paper but rather it’s about your research, analysis, and proof behind it. Investors want proof that there’s a real demand for your product or service. This means:

• Accurate market size and growth trends (not just estimates)
• Competitor analysis that shows why your business is different
• Customer insights—who they are, what they need, and how you solve their problem

Numbers speak louder than words—your market research should be data-driven, not vague claims.

3) Financials that show profit potential

Investors don’t fund uncertainty. Your financial projections should:

• Show a clear path to profitability
• Be realistic, not inflated
• Highlight key metrics that include revenue, margins, burn rate, break-even point

4) A smart use of investment funds

How you spend investment money is just as important as how much you ask for. Investors look for:

• A clear breakdown of how the funds will be used
• Spending that drives growth, not just cover expenses
• A well-structured funding plan that matches your business milestones

5) A team that can execute

An average idea with a strong team can succeed. A great idea with a weak team will fail. Investors want to know:

• Who’s running the business and why they’re the right people for it
• What skills and experience does your leadership team member bring
• If there are gaps, how do you plan to fill them (advisors, hires, partnerships)

They invest in people just as much as ideas. Show them you’re the right team to make it happen.

Business documents investors want to see (But, might not ask for)

When you present a business plan to investors, they may not directly request certain documents, but having them ready shows professionalism, preparation, and credibility. These documents provide deeper insights into your business beyond just the business plan.

Cover letter

Think of this cover letter as a reflection of your professionalism. Imagine walking into a meeting with an investor and jumping straight to asking for money—how would that come across? Not great, right?

That’s exactly why a cover letter is important. It’s the first thing an investor sees before they even open your business plan. It sets the tone and builds credibility.

A strong cover letter includes:

• Your company name, business type, and address
• The investor’s name and details
• A brief introduction to what your business does and why it matters
• A clear mention of how much investment you need and for how long

Here’s a cover letter example I came across and wanted to share with you.

Pitch deck

A pitch deck is a concise, visually engaging slideshow that presents your business idea in a way that’s easy to grasp. Investors often skim a pitch deck before reading a business plan. A well-structured deck helps them understand your business quickly and decide if they want to learn more.

A pitch deck slides include:

• An engaging introduction
• The problem
• Your solution
• Market opportunity
• Target customers
• Financial projections
• Team strength
• Call-to-action

Financial model

Once you have covered the basics of finance, investors will want to take a deeper look into it. They need to understand how your business is making      and spending money.

To give them a clear picture, be fully transparent with these key financial documents:

• Income statement
• Profit and loss statement
• Cash flow statement

Further, investors appreciate details. Hence, go beyond the basics and break down spending by department—sales and marketing, industry analysis, research and development, and general operations. This helps them see exactly where their money would go, how your business is structured, and how you plan to grow.

Investment term sheet

It’s a core document for an investor meeting. It outlines the terms of the investment, including the amount of equity you’re offering and the investor’s role.

Investors want clarity on how much ownership they’ll get, what rights they’ll have, and their expected returns. Having a term sheet ready signals that you understand the investment process.

Here’s what an investment term sheet should include:

• Investment amount
• Equity offer
• Valuation
• Exit strategy
• Key partnerships

Market research report

A report that proves you understand your industry, competition, and customers. This document makes sure that your data are real, not guesses. A strong market analysis shows them that you’ve done your homework and your business has real demand.

Include documents like:

• Target customer demographics
• Competitor analysis
• Industry trend

A million-dollar question: How long should your plan be

This is a debate that never ends. Some say a business plan should be short and to the point, while others believe it should be detailed and comprehensive. The truth? It depends on who’s reading it.

Here’s a table to give you a quick overview of the ideal business plan length for different types of investors.