Creating The Perfect Pitch
"Entrepreneurs are invariably in love with their ideas and desperate to explain every last detail. But it is important to make sure that the plan is as brief as possible, otherwise it will end up in the bin long before the investor reaches the end. It should have an executive summary right at the front, setting out all the key facts in one page of bullet points."
"Producing a clear summary of the major assumptions underlying the business plan is a valuable exercise. This is the angle from which much of the questioning by potential investors will come. If you can set out your assumptions clearly and explain the rationale behind them, the plan will come across as being much more professional. There's no guarantee that investors will agree, but at least they will understand the thinking behind the business."
"There are few sure things in life, and the only certainty about business forecasts is that they are wrong. So, working out by how much, in which direction and, crucially, why, is the challenge. Failing to include some sensitivity analysis is a mistake that inexperienced entrepreneurs often make. Business plans need to recognise this and identify what the impact will be if, for example, the business misses its sales target by 10% in the first year."
"Turning the finalised business plan into a professional presentation is the next step in the process. The presentation should memorably - and succinctly - outline what the business does. The pitch is too complicated if the core purpose cannot be explained in 30 seconds, and you risk losing the interest of the investor. There's a lot of truth to the old cliche about identifying a 'unique selling proposition', even if it may have been overtaken by newer management jargon."
"The credibility of some seriously good projects has been destroyed in one fell swoop by a hesitant delivery and, worst of all, when the technology gets the better of an entrepreneur. Practise the presentation as much as possible. And if you're using PowerPoint to deliver your presentation, make sure you have hard copy sets of the slides, just in case the projector bulb blows or the PC crashes."
"And don't sell yourself short. A common mistake entrepreneurs make is not raising enough money. If an idea is sound, a professional investor will be happy to put in a little more, if it gives the business a contingency fund to deal with the unexpected costs and problems that are inevitable with any new venture. Going back later to ask for more is usually difficult unless there is a very good reason why the extra requirement wasn't anticipated at the outset."
"Entrepreneurs must also be realistic about the potential value of the business. Investors will want a meaningful stake in the company, and not just a few per cent, so prepare yourself for giving up a significant share of the action."
"They will also want a very healthy return on their investment and a planned exit route, so that they can see how they are going to get it back."
"Raising money for new ventures is difficult at the best of times, but good professional advice and a planned, strategic approach can prevent it becoming mission impossible."
Read more here.
"Producing a clear summary of the major assumptions underlying the business plan is a valuable exercise. This is the angle from which much of the questioning by potential investors will come. If you can set out your assumptions clearly and explain the rationale behind them, the plan will come across as being much more professional. There's no guarantee that investors will agree, but at least they will understand the thinking behind the business."
"There are few sure things in life, and the only certainty about business forecasts is that they are wrong. So, working out by how much, in which direction and, crucially, why, is the challenge. Failing to include some sensitivity analysis is a mistake that inexperienced entrepreneurs often make. Business plans need to recognise this and identify what the impact will be if, for example, the business misses its sales target by 10% in the first year."
"Turning the finalised business plan into a professional presentation is the next step in the process. The presentation should memorably - and succinctly - outline what the business does. The pitch is too complicated if the core purpose cannot be explained in 30 seconds, and you risk losing the interest of the investor. There's a lot of truth to the old cliche about identifying a 'unique selling proposition', even if it may have been overtaken by newer management jargon."
"The credibility of some seriously good projects has been destroyed in one fell swoop by a hesitant delivery and, worst of all, when the technology gets the better of an entrepreneur. Practise the presentation as much as possible. And if you're using PowerPoint to deliver your presentation, make sure you have hard copy sets of the slides, just in case the projector bulb blows or the PC crashes."
"And don't sell yourself short. A common mistake entrepreneurs make is not raising enough money. If an idea is sound, a professional investor will be happy to put in a little more, if it gives the business a contingency fund to deal with the unexpected costs and problems that are inevitable with any new venture. Going back later to ask for more is usually difficult unless there is a very good reason why the extra requirement wasn't anticipated at the outset."
"Entrepreneurs must also be realistic about the potential value of the business. Investors will want a meaningful stake in the company, and not just a few per cent, so prepare yourself for giving up a significant share of the action."
"They will also want a very healthy return on their investment and a planned exit route, so that they can see how they are going to get it back."
"Raising money for new ventures is difficult at the best of times, but good professional advice and a planned, strategic approach can prevent it becoming mission impossible."
Read more here.
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For more information, visit www.EvanCarmichael.com. |
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