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MGT 300 - Week 3 - DQ 3

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What are ways in which a strong financial plan can benefit your proposal to potential
investors?
A strong financial plan can benefit your proposal with potential investors by showing them
operational and financial goals. Financial plans clearly describe the way and means for
capital to be used within a proposed organization. The financial plan allows investors to have
view as to how their money is going to be used and what their expected return might be on
the investment. This is similar to when potential stock investors examine the balance sheet
and profit and loss sheet of a company. They can then see the returns the company has made
along with profits. Similarly, a financial plan dictates the theoretical use of investor money
and the proposed returns. Potential investors can judge rationally whether the plan is sensible
or farfetched by comparing it with existing businesses. For example if a financial plan is
promising returns or 100% on invested capital then the investor could look at similar
companies to see what the returns were for these companies. There is an element of
subjectivity attached with examining the financial plan of a proposed business. Having a plan
which is comprehensive and takes into account many possible scenarios will have a greater
selling advantage than a simple plan with no contingencies.

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What are ways in which a strong financial plan can benefit your proposal to potential investors? A strong financial plan can benefit your proposal with potential investors by showing them operational and financial goals. Financial plans clearly describe the way and means for capital to be used withi ...
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