Why More CEOs Are Turning to Fractional Directors & Executive Support

Running a business today means leading through constant change. You need to plan, deliver, sell, motivate, and report — often without the structure or support that large companies take for granted. Many founders and CEOs find themselves wearing every hat at once. The result? Slowed growth, decision fatigue, and missed opportunities.

That’s why more businesses are turning to fractional directors and executive support services - senior-level expertise on a flexible basis, tailored to what your company actually needs.

What Is a Fractional Director?

A fractional director is a senior professional and is often a former commercial, operations, or strategy director, who works part-time within your business to help drive growth. You get access to their insight, leadership, and network, but without the full-time salary or overheads.

At Business Plan Writers UK, we support companies through three core options:

• Fractional Director Roles – practical, hands-on support to deliver results and structure your growth strategy.

• Non-Executive (NED) Support – independent oversight to strengthen governance, manage risk, and hold leadership accountable.

• Executive Coaching & Mentoring – guidance to help founders and senior leaders make confident, well-informed decisions.

The Benefits of Fractional Leadership

1. Strategic Clarity
   A fractional director brings structure and direction, ensuring that short-term actions align with long-term goals.

2. Cost Efficiency
   You access senior-level talent at a fraction of the cost of a permanent hire which is ideal for start-ups, scale-ups, or SMEs balancing budgets.

3. Objectivity
   External directors see things from a new perspective. They challenge assumptions, improve accountability, and spot blind spots before they become risks.

4. Momentum
   Projects move faster when someone experienced takes ownership and drives progress week after week.

5. Focus and Confidence
   With an experienced partner beside you, you can step back from day-to-day firefighting and focus on leading the business.

When to Bring in a Fractional Director

Many clients approach us when:

• Growth has plateaued and a clear strategy is missing.

• The founder is overwhelmed by daily operations.

• A new funding round or product launch requires extra leadership capacity.

• The business is ready for board-level structure but not a full executive team.

• A trusted sounding board or NED perspective is needed for governance.

Why Work With Business Plan Writers UK

We combine our experience in business planning, strategic forecasting, and operational delivery to offer more than advice and then we help you execute.

Our fractional and executive support packages are flexible, transparent, and outcomes-driven:

• Fractional Director Support (from £1,250) – part-time strategic leadership.

• Non-Executive Director Support (£5,000) – board-level structure and governance.

• Executive Coaching (£100) – personal development and decision-making support.

Each is designed to help your business grow sustainably — with clarity, accountability, and confidence.

Take the Next Step

If you’re ready to move from firefighting to focused growth, let’s talk.
Book a free 15-minute consultation to explore how fractional leadership or executive coaching could unlock your next phase of success.

Learn more about our Executive Support services

Unlock Funding with the Growth Guarantee Scheme: How We Can Help

If you're a UK business owner looking to unlock funding of up to £2 million, the Growth Guarantee Scheme (GGS) might be your next best step. Backed by the British Business Bank, this scheme helps businesses access finance they may otherwise struggle to secure—especially in today’s cautious lending environment.

But here’s the catch: to access this funding, your business case needs to be watertight. That’s where we come in.

What Is the Growth Guarantee Scheme?

The Growth Guarantee Scheme replaces the Recovery Loan Scheme and aims to support UK businesses with growth and investment. It's designed for businesses that:

·       Are trading in the UK

·       Have a viable business proposition

·       Need access to loans, asset finance, or overdrafts between £1,000 and £2 million (or up to £250k for start-ups)

NatWest, Lloyds, HSBC, and many other major lenders are participating in the scheme.

Which Plan Do You Need?

At Plan Writers, we offer two tailored packages to meet the needs of applicants under this scheme:

✅ Essentials Plan – For Funding Under £100,000

Ideal for startups or small businesses applying for loans up to £75k. This includes a clear, concise business plan covering:

·       Business overview

·       Market opportunity

·       Financial forecast

·       Use of funds

Perfect if you’re applying for smaller loans or just need to show a solid foundation.

✅ Bank Ready Plan – For Funding Over £100,000

Lenders get strict above this threshold. This package includes:

·       Full business plan tailored to lender requirements

·       3-5 year financial forecast with assumptions

·       SWOT, market research, and competitor insights

·       Customisation for the Growth Guarantee Scheme

Our team has helped hundreds of businesses secure funding from banks and alternative lenders. We know what works—and what doesn’t.

Why Work with Us?

We don’t ask you to fill in long forms or templates. Instead, we interview you directly to understand your goals, then turn that into a polished, lender-ready business plan. Most plans are delivered within 7 working days.

With banks becoming more risk-averse, you need more than just a good idea—you need a clear, convincing strategy. Whether you’re investing in equipment, launching a new product, or expanding your team, we’re here to help you get funded.

Ready to get started?

Contact us on WhatsApp to speak to a real UK Business Writer.

Used AI to Write Your Business Plan? Here’s What You Need to Know Before Showing It to Investors

AI tools like ChatGPT and Gemini are making it easier than ever to create a business plan in minutes. But if you've found yourself wondering whether yours is actually good enough to show to an investor, lender or visa officer — you're not alone.

At Business Plan Writers UK, we speak to UK entrepreneurs every week who have used AI to get started, but aren’t confident the result is investor-ready. Here’s what you need to know if you’re in the same boat.

1. AI Can Help — But It Doesn’t Know Your Business

AI tools are great at generating structure and content. But they’re missing something critical: you. They don’t know your goals, your customer base, your unique value — and they certainly don’t understand the UK market or investor expectations.

AI plans often:

·       Use vague language

·       Lack real financial forecasts

·       Miss out on local market context

·       Include generic SWOT or marketing sections

If your plan feels bland or boilerplate, it probably is.

2. Financial Forecasts Matter More Than You Think

Investors want to see credible, data-driven financials — and AI just isn’t there yet. Most generated plans either leave this out or use placeholder figures that won’t stand up to scrutiny.

We often add:

·       Income models

·       Break-even analysis

·       Realistic growth projections

·       Tailored explanations of revenue streams and cost structures

Without this, a business plan may be instantly dismissed.

3. UK-Specific Requirements Can Be Overlooked

If you're applying for an Innovator Founder visa, approaching a UK bank, or pitching to local investors, your plan needs to meet certain criteria. Many AI plans are based on US templates or overly broad assumptions.

We know what UK decision-makers expect — and we make sure your plan meets those standards.

4. Presentation Matters

Even if the bones of your AI-generated plan are okay, formatting and clarity can be a dealbreaker. We’ve seen plans that look unprofessional, use inconsistent language, or are just plain hard to follow.

Our service turns your AI draft into a polished, professional document that:

·       Flows logically

·       Looks clean and clear

·       Uses persuasive, confident language

5. We Can Turn Your Draft Into an Investor-Ready Plan — Fast

You’ve already done the hard part by getting something down. Let us help you finish it.

·       No forms to fill

·       Just a short call to understand your business

·       We complete your plan — including financials — in 7 days

Ready to Take the Next Step?

If you’ve written your plan with AI and now feel stuck, we’re here to help. We don’t start from scratch — we work with what you’ve got and turn it into something that makes people say yes.

Contact us today to get started — or just give us a call.

How to Choose a Business Plan Writer

Creating a business plan can be a daunting task for even the most determined entrepreneur. The process of translating your vision into a structured, compelling document often feels overwhelming, especially when faced with industry jargon, complex financial forecasts, and the pressure to impress investors or lenders. Many business owners struggle with where to start, how to articulate their ideas clearly, and how to present data in a way that demonstrates both opportunity and credibility. These fears often lead to procrastination or incomplete plans, which can hinder your business’s progress.

When considering hiring a professional business plan writer, new challenges can arise. How do you find someone who truly understands your vision? Will the writer be able to tailor the plan to meet your specific goals, or will it feel generic? Common problems include poor communication, lack of industry knowledge, and in some cases, dealing with writers who promise the world but fail to deliver quality work on time. Some services operate overseas, making time zone differences and cultural nuances an added layer of difficulty. It’s essential to find a professional who can act as a partner in your business journey, rather than just a hired hand.

Another avenue that has become popular is using AI platforms to draft business plans. While AI tools might seem like a quick and cost-effective solution, they often fall short of delivering the depth and nuance required for a truly impactful plan. AI-generated business plans can lack a personalised touch, failing to capture the unique aspects of your business and industry. These plans may also include generic content that fails to impress discerning investors or lenders, who are looking for evidence of a deeper understanding of your market. Furthermore, AI tools cannot conduct meaningful conversations, challenge assumptions, or offer the human insight that an experienced writer brings to the table.

At Business Plan Writers UK, we understand the importance of balancing professionalism with personalisation. Our team brings a unique set of skills that sets us apart. Here’s why you can trust us to create a business plan that works:

1. Prompt and Clear Communication
   We prioritise getting back to clients quickly, ensuring you never feel left in the dark about your project’s progress. Our open lines of communication mean we’re always ready to answer your questions or discuss new ideas.

2. Genuine Interest in Your Business Idea
   We don’t just write plans—we immerse ourselves in your vision. Every consultation is tailored to understand the specifics of your business, ensuring that your plan reflects your goals and aspirations.

3. Proven Experience and Credentials
   Our team includes professionals with MBAs and experience in high-level roles, giving us the expertise to understand what investors and lenders expect. You can verify our credentials on LinkedIn, where our history of successful projects and industry knowledge is clear.

4. Transparency with Examples of Work
   We believe in showing, not just telling. You can explore examples of our previous work with us through a video consultation, offering you confidence in the quality we deliver.

5. Personalised Consultations via Video
   We offer video consultations, allowing us to connect with clients face-to-face, even if remotely. This ensures we capture the heart of your business idea while providing you with a collaborative experience.

6. UK-Based Expertise
   As a UK-based service, we are familiar with the local market and business environment, ensuring your plan aligns with regional requirements and opportunities.

Choosing the right business plan writer is about finding someone who can translate your vision into a compelling, investor-ready document. At Business Plan Writers UK, we combine expertise, communication, and genuine interest to create plans that give your business the best chance of success. Let us help you bring your vision to life with a plan that’s as unique as your business.

Why Trust Us?

How did you get started OR why should we trust you to help us?

A common question we get asked when talk to new clients: how did you get started?  A close cousin to this question, asked less often but more revealing is: why should we trust you to help us?

Thank you - good question!  We love to talk about this and, for us, there are three parts to the answer:

1)     Experience - we’ve walked in your shoes

We know what it’s like to sense that you’ve got what could be a great idea and to need expert help to test, refine and present it so it makes sense to your stakeholders whether they are investors, banks, government departments and even your own family.  I’ve set up two of my own successful companies, joined a small start-up and sat on the boards of organisations.  I’m fortunate that all of these have been successful enterprises in a range of fields.  They’ve all been challenging and the hardest and most important step in each has been getting the business plan right so we do the right things as well as things right.  Get this, right and you build your business on strong foundations.

2)     Service - we care about helping

This sounds a little corny and is probably unfashionable but we are care about our clients, delivering a great service and them being successful.  For us, this means:

·        Acting ethically – for example we operate a flat rate fees and ensure our clients own the plans – it’s not enough for a business plan to simply look good it needs to make sense to you.

·        Using our experience and expertise to add structure, rigour and value to our client’s proposals.  We tailor the consultant and the plan to the business so we can add most value.  If we don’t think we can help we will tell you upfront and before you have commissioned us.

·        We care about customers and our business.  Our customers’ success is our success.  Many of our plans are for repeat customers who are expanding their businesses or setting up new ventures.  I also mentor a small number of local entrepreneurs that have not have the privileges that many of us have been fortunate to experience.

3)     Professionalism - do one thing and do it well

We just write business plans and we do it well.  Our consultants blend the science and art of business planning – they all have MBAs but perhaps more importantly they’ve set up successful businesses with most operating at director level in organisations before setting up their own successful businesses with some, myself included, accredited by the Institute of Consulting.  In 5 years, we have supported hundreds of businesses to become successful ranging from small hobby businesses to multi-million pound start-ups including a previous winner of dragons den.   We’ve fixed many business plans that other plan writers have produced so we know the common pitfalls and that professionalism, service and real life experience are not that common. 

As customers, we should never be afraid to ask the direct question:  why should we trust you to help us?  This helps the best companies and you to thrive and it’s vital for something as important as your business plan.  Blogs often scratch the surface of important issues but I hope it provides at least a partial answer to the question.  If you are looking for help with your business plan get in touch through our contact form [insert link]and when we speak you know what to ask us!

How to Run a Successful Business

More than three-quarters of a million new businesses were launched in the UK in 2021-22. They joined the millions of existing organisations that already power our economy. Some of these many businesses will fail, but many others will succeed, with some becoming giants and major household names. But what is it that makes the difference between a business that succeeds and one that doesn’t, and how can you ensure your business is in the winning circle? Read on to discover all you need to know about running a successful business.  

How do you define ‘success’

You hear the term ‘successful business’ quite a lot, but what does that mean? For many people, it means a  business that makes strong profits and for the owners, delivers wealth and a good lifestyle. However, the truth is, ‘success’ in business can mean many things:

• It could mean delivering ground-breaking innovation and creating revolutionary products and services.

• Or it may mean giving your customers the best customer experience possible.

• For some, like non-profits, success may mean helping others and delivering on a cause or a mission.

• Or it may just mean you get a lot of satisfaction out of what you do.

So, success in business can mean whatever you want it to mean, but no matter what your definition is, sticking to a plan and keeping sight of your goals are essential to succeed. 

What are the steps to running a successful business?

Building and running a successful business is hard work and if you’re starting a new business for the first time, you should be prepared to work harder than you may have ever done before. Commitment and a determination to win are vital commodities in the race to create a successful business. If you have these, and a great idea, you may achieve your business goals, (and more). But to get you started, here are seven solid tips to get you on your way:

1. Prioritise Enhancing The Customer Experience

No matter what you sell, or how you sell it, the customer experience comes first.

Customer experience, (known as CX in business terms), is the secret sauce for business success. When your customers feel they are appreciated and your products, services, customer support, and brand positioning give them an experience they will find difficult or even impossible to get elsewhere, you create lasting brand loyalty and can drive customer retention – which reflects itself in higher sales. 

(According to Harvard University, increasing your customer retention rate by just 5% can increase your sales by 25% to 95% depending on your business sector). 

So what does this mean in practice? It means every element of your business proposition, from the products and services you sell and the way your website or app works, to your marketing approach and your social media communications, must be designed to give the customer an experience that’s better than your rivals. Is this easy? No, it isn’t. But if you get it right, your customers will stay with you, support you, and act as your brand ambassadors wherever they go. 

Points to consider:

• What are your long-term goals and visions? How do they fit into the customer experience, and where do they stand in your sector? Are you a follower, or an innovator? 

2. Develop A Compelling And Impactful Business Concept

This doesn’t mean just a great idea. It means the idea and everything that goes with it must make an impact that resonates in a crowded marketplace. Sometimes, you may not even need a new idea. It’s perfectly possible to take a concept that’s been around for years and then improve it, repackage it, enhance the value it delivers and the service you provide (such as a money back guarantee), and you can create a market winner. However, the key to every successful business concept is that is answers a problem. It must be the best solution to a pain point that your target audience is suffering. Be the answer your potential buyers have always been looking for and they will support you all the way.

Points to consider:

• Assess market demand for your products and services. What problem will you fix, and is there space for a new challenger in your sector?

• You will do better when your idea is something you are passionate about, not just something you think might make money. Build an idea around a product or service that you truly want to invest your time and treasure in.

• Do you research before you start – ask friends and family, organise local surveys, conduct a thorough competitive analysis – find out what your future rivals are doing (and discover where you can do it better).

• Start your ‘community’ early. Use the power of social media to cultivate a strong network that will build as your business grows. These are your first adopters, the experimenters who will get you on the map.

• Assemble the appropriate team to deliver your mission goals. Start with your core skills base – the people who will develop the products or services you will sell – then build a support structure around them. Customers may come first, but products and services are what keep them happy.

3. Deliver Value To Your Specific Target Audience

Value can be determined by two things – is the product or service reasonably priced, and does it deliver a solution that’s worth more than the sum I just paid? This goes back to point 2. If you can create a compelling concept that solves a nagging problem, you’re halfway there. Next, ensure your price point is less than the perceived value of the solution you provide – for example, you provide a product or service for £20 that would have cost someone £100 to achieve before. This is called your ‘value proposition’. When it’s greater than the cost of entry, buyers will be drawn to your door. 

Points to consider:

• Determine optimal pricing strategies – where is the sweet spot between problem solved and price paid? Be prepared to experiment with price trials and soft launches to get this right. 

• How does your pricing stand up against your competition? Can you extract a ‘value premium’ by being significantly better than your rivals? (Think Apple).

4. Embrace Adaptability And Responsiveness

Economies change, fashions change, technologies change, consumers change. Successful businesses ride the waves of change, adapting and responding to the shape of things to come. The business landscape is littered with the wreckage of once great companies who failed to change with the times, got left behind, and fell away. To avoid a similar fate, embed the ideas of continual development, an adaptable business model, and a willingness to change to meet evolving ing demand into your business’ DNA. Nobody ever went broke by being on trend.

5. Demonstrate Bold Decision-Making And Innovative Problem-Solving

Hesitation is the enemy of successful businesses. When you’re faced with an issue, such as a product line that’s not selling, be prepared to make the bold decisions that will deliver the best fix, and do it as soon as the issue appears, not after waiting months and hoping for a miracle that may never come. Take the same approach to problem-solving, instead of looking around to see what your competitors are doing – and they most likely haven’t fixed the same problem either – ask yourself what they haven’t done. Where’s the solution that hasn’t been tried yet? Be prepared to experiment. It may just give you the market edge that boosts your business to the next level.

Points to consider:

• Make constant learning a priority – for you and your team. When you have all the available knowledge, it’s easier to make the big decisions.

• Stay in touch with your business sector, watch your competitors, observe how they tackle problems and weigh the decisions they make.

• Don’t wait for a problem to become a crisis, be prepared to act sooner than later.

6. Foster Attentiveness And Mindfulness

This goes back to points 4 and 5 – stay alert to changes and events within your industry and your customer base. Encourage your team to do the same. One of the easiest ways to fail in business is to lose focus of your goals. Good attention is mandatory – and so is mindfulness; when you and your team are optimistic and aware, you work better together. 

Points to consider:

• Listen to your customers, be aware of what they want (and what they say about your business).

• Encourage teamwork, but also urge your employees to think outside the box and develop ideas they think are worth pursuing, even if it means working alone.

• Don’t be afraid to follow the lead of a rival if it shows promise, but keep in mind that there are few ideas that can’t be done better. How can you improve on their concept?

7. Engage In External Interactions Beyond The Office Environment

Building a business can be mentally and physically demanding. Keep some time for yourself. Visit friends, enjoy a sport, just get away from work on a regular basis to let your batteries recharge.  Remember… the best ideas are usually born from the experiences we encounter when we’re away from our desks.

Always shop around for business loans and banking products

Few businesses succeed without strong financial help. This means loans, leases, credit lines, even invested equity from lenders and financiers who understand your sector and support your business model. Shopping around to secure the best deal is essential, but finding good financial help can be difficult and time-consuming, especially for young businesses. Without expert guidance, SMEs can find themselves forever searching for finance that suits their individual needs. Instead, working with a broker who can give you access to a range of lenders from a single source is a better way to go. No more cold calls and endless demands for information, just tell us what you need and leave the rest to us.

 
Written by

Chris Godfrey on behalf of Swoop Funding

Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Barclays Bank, Metro Bank, Wells Fargo, ABN Amro, Quidco, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of consumer and business finance.

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How to calculate EBITDA

There are several different metrics businesses can use to calculate their financial health and performance, and EBITDA is one of them. EBITDA is often used by businesses to compare their financial performance against that of their competitors, while analysts might use it to help determine the sustainability of an organisation. 

Additionally, if you are looking for a business loan, many banks will use EBITDA to assess whether a company can repay its debts. 

This guide takes a closer look at how to calculate EBITDA and its pros and cons. 

What is EBITDA?

EBITDA stands for earnings before interest, taxes, depreciation and amortization. It is a type of earnings metric that can help understand a business’s ability to generate cash flow for its owners. It also helps financial advisers and analysts calculate how much a business is earning before any reductions and modifications take place. 

EBITDA doesn’t account for the different ways a company might use debt, equity, cash or other sources of capital to finance its operations. It also excludes non-cash expenses such as depreciation, and it excludes taxes. As such, EBITDA can be a useful way to evaluate a business and is often used to compare two similar businesses or determine a company’s cash flow potential.

EBITDA became a popular method of measuring a company’s performance in the 1980s. Investors and lenders involved in leveraged buyouts found it a useful way to estimate whether the targeted company had the profitability to pay off the debt likely to be incurred in the acquisition. Because a buyout would usually result in changes to the capital structure and tax liabilities, it made sense to exclude the interest and tax expenses from earnings. 

Calculating EBITDA

There are two ways to calculate EBITDA. One is based on net income and the other on operating income. We’ve outlined both methods below:

EBITDA Formula

The first EBITDA formula is as follows:

Net income + taxes + interest expenses + depreciation + amortization = EBITDA

The second EBITDA formula is:

Operating income + depreciation and amortization = EBITDA

To use EBITDA, it’s important to understand what each part of the formula means.

Earnings

Your earnings are usually your net profit as you report it to HMRC. Your net profit is the total revenue generated from sales, minus the total amount you deduct as a legitimate business cost.

Interest

Interest expenses are the cost of having debt. For EBITDA, the interest you are charged when you repay your debt is added back to your earnings. 

Taxes

A company’s taxes can vary from one period to the next and are affected by a number of conditions that might not directly relate to your company’s operating results. 

Depreciation & Amortization

Depreciation and amortization represent the gradual decrease in value of assets over time. Depreciation applies to tangible assets such as machinery or vehicles, and EBITDA adds back this loss in value. Amortization applies to intangible, or non-physical, assets such as patents or copyrights which eventually expire, and this is also added back.

Why use EBITDA?

EBITDA is considered to more accurately reflect the performance of a business and it can give an analyst a quick estimate of the company’s value. What’s more, if a business is not making a net profit, EBITDA can be used by investors to evaluate the business. It can be ideal for comparing similar companies in the same industry and business owners often use it to compare their performance against competitors. 

Disadvantages

One of the biggest disadvantages of EBITDA is that it’s possible for companies to include or exclude different components which can make it a misleading measurement for traders and analysts. Companies can decide to present financial decisions in a more favourable light, by excluding debts for example, and this can make a company seem more profitable than it actually is.

EBITDA also does not account for certain expirable assets or assets that depreciate in value over time. 

For these reasons, EBITDA should not be used exclusively as a measure of a company’s financial performance. A high EBITDA can make a company look like a good investment, but only using this metric could result in an investor putting money in a company with high debt to repay or an organisation that needs to spend a lot of money replacing old equipment. 

Advantages

Although there are a number of drawbacks, EBITDA is often used because it only accounts for necessary expenses for the day-to-day running of a business and it represents the cash flow generated by ongoing operations. It is also a good indicator for how well a business is able to produce profits and an easy way to compare how well it’s performing against its competitors. 

What is the debt to EBITDA ratio?

The debt to EBITDA ratio measures a company’s ability to repay its debt. A high ratio can suggest that the company’s debt is too much of a financial burden. 

If you’re taking out a business loan, the bank might include a debt-to-EBITDA ratio in your loan agreement. If it does, you will need to stick to this ratio or risk having to repay the loan in full immediately. 

Example EBITDA calculation

Below is an example EBITDA calculation for Company ABC:

• Total revenue: £1,000,000

• Net income: £450,000

• Taxes: £190,000

• Interest: £20,000

• Depreciation and amortization: £10,000

Net income + taxes + interest expenses + depreciation + amortization = EBITDA

£450,000 + £190,000 + £20,000 + £10,000 = £670,000

Another example EBITDA calculation for Company XYZ is as follows:

• Total revenue: £1,000,000

• Net income: £400,000

• Taxes: £190,000 

• Interest: £25,000

• Depreciation and amortization: £8,000

£400,000 + £190,000 + £25,000 + £8,000 = £623,000

To work out the EBITDA margin, you can divide the EBITDA by total revenue. 

For example:

Company ABC

(£670,000 / £1,000,000) x 100 = 67%

Company XYZ

(£623,000 / £1,000,000) x 100 = 62.3%

Bear in mind that if one company has a lower revenue but a higher EBITDA margin compared to another, investors will view this company as having a more sustainable business model, making it a better investment. 

Written by

Rachel Wait for Swoop Funding

The five things that make a business investable

If you want your business to appeal to investors, make sure you give them what they want

AUTHOR: Kerry Dwyer, Equity Manager at Swoop

With a new tax year approaching, now is a good time to take a step back and consider your approach to attracting investment into your business. Investors are looking to give promising businesses two things: money and expertise. In return, you need to be able to demonstrate that these will be good investments.  

In this article, we are going to look at the five things that make a business investable: these are the things that investors will want to see from you to ensure that not only is your business sound, but also that you are someone they can work with. 

#1 A great idea 

At the core of everything is the fundamental idea of your business. 

Front and centre, what problem does your business solve? It is important to be clear about this and not to make the mistake of overdoing the slide on your pitch deck that covers this, making it seem as though the problem is being ‘fluffed up’.

Airbnb’s seed pitch deck covered their problem in three key points: they addressed the customer’s problem and the hotels/hosts’ problem before leading into the next slide on the solution: 

A web platform where users can rent out their space to host travellers. 

Getting your solution in one line here is important. Be prepared to iterate time and time again over this, ask for opinions, and potentially enlist the help of some experts to get this right. It’s the one part of your business that is (in most cases) not going to change. When an investor takes your deck in front of an investor committee and pitches your idea, this is the first hurdle, so make it as simple as possible for someone else to explain your idea to others. 

#2 Market opportunity 

Once you have established that the business solves a problem, the investor will want to know how common the problem is and how many people are prepared to spend money on solving it. ‘Market opportunity’ can be split into two parts: market validation and size of opportunity.  

Market validation

If your business has competitors in the market, this demonstrates that customers are willing to pay for a solution to their problem. If a business has no competitors, investors will want to know why: it may be that your business is genuinely novel and game-changing – but it could be a solution looking for a problem with limited appeal. 

Ideally, a business that seeks investment will have indirect competitors who are trying to solve the same problem, but in a different way. For example, a bulletin board such as Craigslist provided the opportunity to rent out and monetise properties, demonstrating that people were willing to do such transactions on the internet. Airbnb created a better way of doing this after the market had already been validated. 

Size of opportunity 

The solution may be better, but will people want to use it? Analysing the size of the potential market is important to the investor and there is a formula for estimating this potential, known as TAM, SAM, and SOM which stand for: 

TAM: Total Available Market is the total market demand for a product or service. This can often be hardest to quantify. Airbnb’s TAM is ‘anyone wants to share their space’, which is obviously massive. 

SAM: Serviceable Available Market is the segment of the TAM targeted by a business’s products and services which is within that company’s geographical reach. The internet can extend this reach: Airbnb’s SAM would therefore include any internet user who is able to access their website or app. 

SOM: Serviceable Obtainable Market is the portion of the market a business can capture in the short term. This is the figure on which investors are largely basing their decision. At this point, founders should be ambitious but not unrealistic in their projections as you need to demonstrate a clear strategy to deliver on this ambition (or at least, come close). 

SOM is often shown at different points in time, so your estimated SOM in 2 years might be £3m, growing to £14m in year 5 based on certain assumptions. 

Finally, consider scalability: could your business easily open another branch in a different town or country? If your customer base doubled, would you be able to meet the demand? Many startups are self-limited in how much work they can carry out; an investor who wants to multiply their investment by a factor of ten will want to know that this capacity can be expanded. 

#3 Team 

How will your business execute your idea after validating the opportunity? Investors are betting on the founder to be the best leader of the business, but also that the team will support them. 

Investors don’t just back an individual, they back teams.

While many businesses are founded by an individual, a growing business needs a team to scale. Having the right co-founder and team behind you is vital. 

A well-balanced team will be able to meet the diverse needs of a business, from attention to detail in accounts to the blue-sky creativity in marketing. A business should be able to show that there are employees, advisors or mentors who can support the founder. 

Those first hires should cover the areas that the founder cannot do themselves, whether because they don’t have the skills or the time, such as:

Website design, sales, marketing, accounting and bookkeeping, and the fundraise management itself, among other roles which require specialist skills.

#4 Pitch deck 

Think of the pitch deck as your CV and just like a CV, there are certain expectations on what should be in it. Swoop recommends that your pitch deck is between 10 and 15 slides, with a limited amount of text on each slide. Keep it snappy and to the point. 

Investors view hundreds of pitch decks every week, so leave out the jargon and buzzwords, and don’t waste their time: investors should be able to tell what your business does and the problem it solves within the first three slides. 

Investors may make a fast decision whether they want to go ahead with meeting a founder or moving on to another opportunity. It is very easy for them to say “no” so how do you get them to say “tell me more”? 

1. Money – investors aren’t giving you their money unless they can see potential for a good return on investment.

2. Create some FOMO (fear of missing out) – tell a story, be able to show your USP and back this up with facts and figures. Talk about other investors who are already interested (be genuine!).

3. Flatter them – tell them why you need them specifically above others and how you want to work with them based on their portfolio and previous successes. This might mean having a different version of your deck for different investors. Angel investors won’t have the same value add as an institution and vice versa. While they’re broadly looking for the same thing, you may need to tweak things depending on the target market.

This is also a good time to think about the raise size (ie. how much money you are asking for) and valuation (how much your business is worth): consider other businesses in your space and what they raised at a similar stage to you. If you are raising more or asking for a higher valuation, be able to justify this with a breakdown of your planned use of funds, how long this money will last and a timescale for your next raise (this is called the ‘runway’). 

Lastly, design and branding are key to attracting attention: do not underestimate the impact of a pitch deck that is easy on the eye and free of spelling, grammar or formatting errors (tip: export your deck to a PDF as it may look different on different computers). 

Review and proofread your deck, pitch it yourself to someone you trust and iterate until it’s perfect. Don’t crowd the slides with words, the pitch deck is not the place for detail, it is about prompting the investor to want to know the detail. 

#5 Traction, traction, traction

“We love your idea but come back when you have some traction”. If this is something you’ve heard before, you’re not alone. What is traction?

Traction is tangible evidence of demand for your product or service. Investors are not going to throw their cash at a pitch deck alone: you should have a Minimum Viable Product (MVP) and evidence that there is demand for this product. If you don’t have products to show with screenshots or a demo within your deck, you are probably not ready to be pitching. There are exceptions, such as products which require big capital investment to be built, but generally, investors need to see the idea in action. 

From an investor’s perspective, ideally, you can show some revenue as revenue growth is their number one priority.

If you are a pre-revenue business, think about other ways in which you can show growth and make it easier to attract attention and investment, such as user growth and milestones achieved. If you can show that your user base is growing rapidly, this may convince some investors to back your venture and get it to the revenue stage. 

Consumer product businesses should be able to show proven sales and rapid growth whereas a SaaS business might need a lot more initial investment to reach this point. User testimonials are another great way of showing genuine demand for the product: enthusiasm and loyalty from customers is very attractive to an investor.  

Know your cost of acquisition of customers (CAC) and the lifetime value (LTV) of those customers, or the return you get on your marketing spend. Investors want to see your CAC/LTV ratio declining ideally before they invest. 

Final thoughts

Finding the right investor for a business is a bit like dating: you have to kiss a few frogs before you find your prince. Taking the right approach, however, should mean that you’ll have to deal with fewer frogs and may even be in the position of picking which prince to go home with. 

Ultimately there are no guarantees, but if you see your business through the eyes of an investor, you can take actions that will make your operation much more attractive to the people holding the purse strings.