Attracting investment capital isn’t a skill that most people are born with. With a large number of lenders tightening their guidelines, more entrepreneurs are hoping to attract investors on their own to finance their new or growing business. The good news is that there are still people out there who are ready to invest in a good business opportunity. But these investors have learned to tighten their standards, and your presentation skills will likely be put to the test to demonstrate why your business or idea is worthy of their consideration. So make sure you have planned and practiced well to get the most from the limited time you may have with your prospective investor.
Your business growth plan presentation should be based on the details contained in your business plan. It should be concise but still contain important details. This means you will need a professionally written business plan that explains your unique business opportunities and financial projections. Your plan should include the amount of funds you are trying to raise and how you intend to use those funds. Investors want to know that you are intimately involved with your business and know how to make it successful.
To complement your business growth plan presentation, you need to develop an attention-grabbing pitch. Your pitch should only take one or two minutes and contain the details and critical points that potential investors are looking for most. Study your business plan and try to ask yourself the same questions that investors might ask. Condense these answers down into a bottom-line, up-front pitch.
In addition to your business growth plan presentation, investors want you to have some skin in the game. This means some of your money. You can’t expect someone to invest their money in your business, if you aren’t willing to do the same.
Finally, you will need an investment agreement which details the investment and how the investor will be repaid. Additionally, the agreement will protect your rights and interests in the business. Before you take any investment you should consult with an attorney to make sure you are in compliance with any legal requirements.
Learn more about what investors are looking for with our in-depth e-learning resources.