How do you plan to pay off the investors if the company does not succeed? Just in case, show the scenario the other way as well (i.e., if the company succeeds).
Questions you should answer within your business plan:
- Is your company separate from you? Is it a legal entity?
- What is the value of the company at the time of the exiting? How will you pay off the investors?
- If you sell?
- If the company does not make it and closes?
- In a partnership make a plan for who retains the company, who gets bought out and how the price could be determined.
Page 23 Rogoff, Edward G.. (2004). Bankable business plans. Thomson Texere.