These are the seven things you should do. You have to look the part and be able to say the right things when asked to earn capital from them. Investors come from all walks of life, and you have to be able to tailor your pitch to each of them to make your business more prominent to their interests. However, there are some things that remain constant and will work to impress investors and garner the funds you need to take your business to the next level.
Both venture capitalists and angel investors have the difficult task of balancing risk versus reward in their decisions. Your first challenge is to show them the financial opportunity you are presenting to them.
Explain why your venture has the potential to grow quickly and be extremely profitable compared to other ventures they might be looking at. Then show what you have done to mitigate risk. Write in an engaging, enthusiastic, confident tone. The business plan can be compared to a marketing brochure.
Your goal is to get the investors as excited as you are about the future prospects for your venture.
Investors want to back companies that can achieve considerable size in a three- to five-year period. Show them why your market is rapidly developing, or already large, and why your venture will be able to capture market share at an accelerated pace.
Explain how your technology works in simple, straightforward terms.
Investors see business plans for many dynamic technologies over the course of a year. Their major concern is whether the technology can make money. Present a compelling case for why the customer needs your product and will pay money for it. The solution you are providing the customer must not only be good, it must be important--addressing a problem that the customer has an urgent need to solve, right now.
Demonstrate you can sustain your competitive advantage. The most difficult part of writing a business plan is articulating what you will do to maintain your position in the market as time goes by and new competitive threats appear--which they invariably will. Approach this by showing what you will do to ensure your product or service offering is so superior that your customers would have little incentive to buy from anyone else.
Make the investor believe in your management team. Build credibility with investors by showing past successes your team members have had that will translate into success in your new venture.
Show what types of skills and experience are required to succeed in this type of business--and how you have gone about assembling your team with these specific requirements in mind.
Tips Before you send the plan to investors, ask two or three trusted associates to read it and let you know if they find any areas that are confusing or need further explanation.
In fact, business plans are so closely tied to fundraising that many entrepreneurs look at them as suited only for presenting to investors and overlook the management benefits of planning. It is important to know how to write a funding proposal as this is your chance to convince potential funders that your business is run efficiently, that it is accountable and that it can achieve the objectives it sets.. How to write a funding proposal that will have impact. Before you begin to write your funding proposal, you need to do planning and research. Investors also look at the team behind a potential investment opportunity and want to know that the people that are running the show are passionate, talented, and the best at what they do.
Keep the plan to a reasonable length, 20 pages of narrative and 10 pages of financial projections. Present optimistic, but not outlandish, financial projections. The assumptions behind the numbers are what matters most.
Make sure you can explain why you believe your assumptions are realistic. If the investor sees the logic you used in the projections, and agrees with it, your chances of obtaining funding are greater.Looking for investors for your business is the entrepreneur's version of job interviews.
You have to look the part and be able to say the right things when asked to earn capital from them. Jul 09, · Needless to say, this is not easy.
You must be able to condense all of the information in your PowerPoint presentation (see 2 below) and business plan (see 3 below) into a brief summary. 2. May 12, · Before writing a business plan, put yourself in the investor's place and consider what the investor might be looking for when reading your business plan.
Obviously, investors will expect to see the details of the business, such as the type of business, . Business plan and presentation for potential investors We are looking for a business plan to be written and used as the content for a presentation to potential investors.
The theme is .
In fact, business plans are so closely tied to fundraising that many entrepreneurs look at them as suited only for presenting to investors and overlook the management benefits of planning. The written business plan is often the way to get in the door with investors.
If they like your plan, they may invite you to pitch and present. You may get only one chance to present to this group.