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Incorporating Investor Feedback into Your Business Plan

Investors, like the rest of us, have different tastes. One

investor may love a concept and/or business plan while the next

may hate both. It is important to understand this as business

plans are working documents and are always undergoing iterations.

Management teams must not rush to incorporate each potential

investor's comments. Instead, have several investors, partners

and other business colleagues review the plan and provide

feedback. Then incorporate common concerns and probe other

comments to determine if they are valid.

Always try to understand the rationale behind an investor's

comments. For instance, an investor may poke holes in a business

plan if it doesn't have enough funds to fully fund the

opportunity. In this case, the investor's criticism is solely

for them to save face.

However, if you are hearing the same feedback from multiple

investors, it is probably valid. In such cases, be humble. Tell

investors that you appreciate their feedback and modify your

strategy and plan appropriately. You may then be able to

re-approach these investors with great success.

Many investors have significant operating and investing

experience and can quickly and expertly find potential flaws in

a business plan. Seek out investors who have such experience,

and be open to their suggestions. Just don't take one point of

feedback and blindly follow their advice. It is also important

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to note that even the most successful and largest public

companies have Boards that provide similar feedback and advice,

so don't take criticism and feedback as a sign that something is

wrong with your venture. Rather, use it as a launching pad for

an even stronger business.

About the author:

GT Business Plans has

developed over 200 business plans for clients that have

collectively raised over $750 million in financing, launched

numerous new product and service lines and gained competitive

advantage and market share. GT Business Plans is the sister site

of GT Venture Capital.