Surprisingly, many of the giant direct selling companies in the industry today had humble beginnings, often with one individual’s dream. That individual usually had little or no money and became a MLM mogul after years of dedication; stirring laundry detergent in their bathtub or selling bibles door-to-door. Some were lucky enough to grow their companies without the financial backing of investors, but others were not. (Like the rest of us!)
For purposes of raising investment capital, the market section may be the most important part of your business plan.
Many MLM entrepreneurs are lucky enough to have a dream to start a MLM company but lack the capital needed to fund the project. Most people turn to family and friends, to co-workers, then to angel investors, and finally to private placement venture capitalists to find the money they need to grow their business. Investors may listen to the presentations, but the money is never a guarantee.
Searching for MLM Startup Capital – Funding the Direct Selling Company
What is the first step in the process to secure capital to fund the MLM startup dream? It is the business plan, of course! Before any sophisticated investor or angel financier will consider funding your marketing program, they will look for an organized presentation of your ideas, projections and abilities. A good business plan will be the backbone for any private investment of capital and will also help to bridge financial gaps as your company grows.
You can write the business plan yourself or hire a qualified MLM consultant. Most successful business plans are developed by experienced MLM consultants who have experience in management, marketing, compensation plans, and the MLM startup.
What should be expected in your business plan? Most business plans have basic formats; however, here are some of the basics.
How to Structure Your Direct Selling Business Plan
The structure and content of the business plan will often vary depending upon such factors as the company’s stage of development, the nature of the business, and the type of markets it will serve. However, the following topics should be addressed in any business plan, and provide a relatively easy format to follow.
Eight Key Topics to Include in Your MLM Business Plan
And, as always, visit MLMLegal.com, the best MLM resource on the web. The next Starting and Running the Successful MLM Company Conference will be here before you know it! On May 16th and 17th, 2013 we are hosting the MLM Conference for the 25th year! This is now our 64th annual conference (held almost consistently three times per year over the last 24 years). All executives/owners of MLM, direct selling, network marking, and party plan companies are welcome to attend. This is the original MLM Startup Conference, hosted and perfected by direct selling industry expert, MLM Attorney Jeff Babener. Call 503-226-6600 or 800-231-2162 to register. (Can’t make this event? Keep an eye out for our October and February conferences as well.)
This article is also available online at: http://mlmattorney.com/blog/2013/04/09/8-topics-to-include-in-your-business-plan-to-help-you-attract-key-mlm-investors/