The Checklist: 15 Things Your Business Plan Must Have Before Submitting to Investors

Introduction

The Checklist: 15 Things Your Business Plan Must Have Before Submitting to Investors might be alll you need to know. Have you wondered why a business plan will be professionally designed, beautifully formatted with dozens of pages, and still fail to convince an investor.

Why?

Because investors are not investing in the appearance of a document. They are assessing an opportunity, a business model, a management team and the likelihood of receiving an attractive return for the risk they are taking.

Before approaching investors, your business plan should therefore answer some difficult questions:

Is there a real market?

Can this business make money?

Can the management team execute the plan?

How much money is required?

What exactly will the money be used for?

Also, what could go wrong?

And what does the investor get in return?

Nigeria’s Securities and Exchange Commission (SEC) identifies a compelling business plan, market research, financial projections, risk disclosure and appropriate offering structure as important components of the capital-raising process. It also emphasises accurate and transparent disclosure when raising capital.

Before you send your business plan to an investor, use the following 15-point checklist.

A Clear Executive Summary

The executive summary is often the first section an investor reads, even though it is usually written last.

It should quickly communicate:

What the business does
The problem it solves
Its target market
Current traction
Competitive advantage
Revenue model
Funding required
Proposed use of funds
Expected growth

For example, don’t write:

“ABC Foods is a dynamic company committed to providing quality food products to customers.”

Instead:

“ABC Foods is a Lagos-based packaged-food company currently generating ₦6 million in monthly revenue from three products. The company seeks ₦50 million in growth capital to increase production capacity, enter Abuja and expand its distributor network.”

The second version gives an investor something measurable to evaluate.

Checklist: Can someone understand your entire investment opportunity after reading your executive summary?

A Clearly Defined Problem and Solution

Investors need to understand why the business should exist.

What problem are you solving? Who experiences it? How painful is the problem? Why is your solution better than existing alternatives?

For an existing business, provide evidence.

A laundry business, for example, might have discovered that busy professionals in its area struggle with reliable pickup and delivery. Its solution is not simply “laundry services”; it is a convenient, scheduled pickup-and-delivery service supported by digital ordering.

Your business plan should show that the product or service addresses a genuine customer need—not simply that the founder likes the idea.

Checklist: Is the customer problem specific, important and supported by evidence?

Evidence of Market Demand

One of the biggest weaknesses in investor business plans is unsupported claims such as:

“There is a huge market for our product.”

How huge?

Your plan should provide market evidence.

Include relevant information about:

Market size
Target customers
Customer demographics
Industry trends
Buying behaviour
Competitors
Geographic opportunity
Growth potential

If the business already operates, use your own customer and sales data alongside external research.

For example, saying “we have 500 customers” is useful. Saying “we have 500 customers, 38% have purchased at least twice and monthly sales have increased from ₦2.4 million to ₦4.1 million over 12 months” is much stronger.

Checklist: Have you demonstrated demand rather than merely predicted it?

A Specific Target Market

“Everybody” is not a target market.

An investor needs to know precisely who will buy your product and why.

For example:

“Women aged 18–55.”

is too broad for many businesses.

A more useful description could be:

“Working women aged 25–45 in Lagos and Ogun States who purchase ready-to-wear work and occasion outfits and typically spend ₦30,000–₦80,000 per purchase.”

This helps the investor understand your marketing strategy, pricing and revenue assumptions.

Checklist: Could you describe your ideal customer in one clear paragraph?

A Credible Business Model

Your business plan must explain how the business makes money.

Identify:

What you sell
How much you charge
How customers pay
How frequently they purchase
Major costs
Gross margin
Main revenue streams

Suppose a business sells cakes at ₦50,000 each.

If the ingredients, packaging and direct labour cost ₦32,000, the gross contribution before other operating expenses is ₦18,000.

An investor needs to understand this economics—not just the selling price.

If there are multiple revenue streams, explain each one and indicate which is expected to become the major source of revenue.

Checklist: Can an investor clearly trace how ₦1 of sales becomes revenue, gross profit and eventually profit?

Evidence of Traction

For an existing business, traction can be one of your strongest assets.

Show what you have already achieved.

Depending on the business, this could include:

Revenue
Number of customers
Repeat customers
Contracts
Production volume
Distribution outlets
App users
Partnerships
Monthly recurring revenue
Gross margin
Customer retention

For example, an investor is likely to view a business that has already generated ₦60 million in annual sales differently from an idea that has generated no revenue.

Traction does not guarantee success, but it provides evidence that the business model has been tested in the real world.

Checklist: Have you included measurable evidence of progress?

A Strong Competitive Analysis

Investors will want to know who else is serving the same customers.

Do not say:

“We have no competitors.”

Almost every business has competitors or substitutes.

If you operate a restaurant, your competition includes other restaurants, delivery businesses and customers preparing food at home.

Identify:

Direct competitors
Indirect competitors
Their pricing
Their strengths
Their weaknesses
Your differentiation

Then explain why customers would choose you.

Checklist: Can you explain your competitive advantage in one or two convincing sentences?

A Capable Management Team

Investors invest in people as well as businesses.

Your plan should introduce the key people responsible for executing the strategy and explain their relevant experience and achievements.

Don’t simply write:

“The CEO has an MBA.”

Explain what the person has achieved.

For example:

“The CEO has eight years’ experience in FMCG distribution and previously managed a sales territory generating more than ₦100 million annually.”

Also identify management gaps.

If the business needs a Finance Manager or Operations Director after funding, say so.

Checklist: Does the team have the skills required to execute the proposed growth plan?

A Practical Operations Plan

Investors need to know that the business can actually deliver what it plans to sell.

Explain:

Production process
Suppliers
Equipment
Inventory
Staffing
Premises
Logistics
Technology
Quality control
Capacity

Consider a poultry business seeking funding to increase from 2,000 to 10,000 birds.

The plan should explain whether it has enough housing, feed supply, labour, veterinary support, water, power, storage and distribution capacity.

Checklist: If sales doubled tomorrow, could your operations handle the demand?

Realistic Financial Projections

This is one of the sections investors will scrutinise most closely.

Your financial model should normally include:

Revenue forecast
Cost of sales
Gross profit
Operating expenses
Profit and loss statement
Cash-flow forecast
Balance sheet where appropriate
Capital expenditure
Break-even analysis
Funding requirements

For an established company, historical financial performance should inform the projections.

The SEC’s capital-raising guidance specifically identifies financial projections and financial statements among the information investors need when assessing an offering.

Avoid projections such as:

Year 1: ₦20 million
Year 2: ₦100 million
Year 3: ₦500 million

without explaining how the business will achieve those numbers.

Checklist: Can every major number in your forecast be traced to a realistic assumption?

A Specific Funding Request

Never simply write:

“We are seeking funding to expand the business.”

State the amount.

For example:

Funding required: ₦75 million

Then explain exactly what it will finance.

Use of Funds	Amount
Equipment	₦30m
Inventory	₦15m
Facility expansion	₦10m
Marketing	₦8m
Recruitment/training	₦5m
Working capital	₦7m
Total	₦75m

The figures must reconcile with the financial model.

The investor should understand why ₦75 million—not ₦50 million or ₦100 million—is required.

Checklist: Does your funding request have a clear calculation behind it?

A Clear Investor Return Proposition

This is where some entrepreneurs become uncomfortable.

You are asking someone to put money into your business. What does that investor receive?

Depending on the investment structure, it could involve:

Equity ownership
Dividends
Interest
Principal repayment
A defined exit opportunity
Another agreed return mechanism

Do not promise unrealistic returns simply to make the proposal attractive.

Instead, explain the proposed investment structure and the economic rationale behind it.

For formal securities offerings in Nigeria, the SEC requires appropriate disclosures and documentation, and the structure of an offering—such as equity, debt or another instrument—has regulatory and legal implications.

Checklist: Is the investor’s potential return clearly explained and professionally structured?

A Risk Analysis and Mitigation Plan

Every business has risks.

Pretending otherwise makes a business plan less credible.

Consider:

Market risk
Competition
Inflation
Exchange-rate exposure
Supply-chain disruptions
Regulatory risk
Key-person risk
Customer concentration
Technology risk
Cash-flow risk

But don’t stop at identifying the risks.

Explain what you will do about them.

For example:

Risk: Imported raw materials become more expensive due to exchange-rate movements.
Mitigation: Develop local suppliers, maintain alternative suppliers and review pricing quarterly.

An investor does not expect zero risk. They want to know that management understands the risks and has a plan.

Checklist: Have you identified the risks that could materially affect your investment case?

Evidence and Supporting Documents

Your business plan should be supported by documentation where appropriate.

Depending on the business and funding stage, this could include:

CAC documents
Tax records
Bank statements
Management accounts
Audited accounts where applicable
Major contracts
Supplier agreements
Licences
Product certifications
Customer evidence
Asset documentation
Intellectual-property documents
Management CVs

This becomes particularly important during due diligence.

For example, if your business plan says you have ₦40 million in annual revenue, your accounting records should be capable of supporting that claim.

The SEC’s documentation requirements for regulated capital-market activities illustrate how extensive verification can become, including corporate documents, financial statements, share-capital information and management profiles.

Checklist: Can you prove the important claims in your business plan?

Consistency, Accuracy and Professional Presentation

Finally, perform a complete consistency check.

Your business plan should not say:

₦50 million funding in one section and ₦70 million somewhere else.
10 employees in one section and 18 in another.
5,000 customers in the executive summary and 3,000 in the marketing section.

Check that:

Market size → Sales strategy → Revenue forecast → Operations → Staffing → Funding request

all tell the same story.

Also proofread names, figures, dates, percentages, calculations and company information.

A professional design helps readability, but accuracy matters more than decoration.

Your business plan should make it easy for an investor to find the information needed to evaluate the opportunity.

Checklist: If an investor challenged any important number tomorrow, could you explain and support it?

The 15-Point Investor Submission Checklist

Before submitting, ask yourself:

Is the executive summary clear and compelling?
Is the problem and solution clearly defined?
Is there evidence of market demand?
Is the target customer specific?
Is the business model financially understandable?
Have you demonstrated traction?
Have you analysed competitors and differentiation?
Is the management team credible?
Is the operations plan practical?
Are the financial projections realistic?
Is the funding request specific and justified?
Is the investor return proposition clear?
Have you addressed material risks?
Can your claims be supported by documents?
Are the entire document and figures accurate and consistent?

If several boxes remain unchecked, your business plan may not yet be investor-ready.

How DABH Can Help

At Dayo Adetiloye Business Hub (DABH), we help entrepreneurs move beyond simply “having a business plan” to developing a business plan that is structured for actual decision-making and funding conversations.

Our services include business plans, feasibility studies, market research, financial projections, pitch decks, grant writing, BOI loan applications, funding readiness, investment readiness and business advisory.

We can help you test whether your market assumptions, financial projections, funding request and growth strategy tell one coherent story before you approach investors.

Call/WhatsApp: 08105636015, 08076359735, 08113205312

Email: dayohub@gmail.com

Website: www.dayoadetiloye.com

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