The Investment Plan as distinct from the business Plan is an abridged version covering a dozen or so pages plus documentation. It is derived from a fully developed business plan, perhaps one that has taken months to develop and is as long and comprehensive as needed However the Investment Plan has a tighter focus in four areas.
1. The nature of the business and the market . How much funding is needed to support sales and encourage earnings. Capabilities of management.
2. Analysis of competition, trends, ability to capitalize on environmental change.
3. Management resources, proprietary products, differentiation and competitive advantages.
4. Sources and uses of funds. Elements of the deal available to the investor: equity, participation, debt ratio mix