ATTRACTING INVESTORS: A Compelling Executive Summary in 10 Items or Less
ATTRACTING INVESTORS: A Compelling Executive Summary in 10 Items or Less
The goal of an Executive Summary is to whet the appetite of the investor by presenting a compelling premise, an irresistible hook. Your short (5 pages or less) document is meant to give a potential investor every reason to say “yes” and little reason to say “no” to a face-to-face meeting.
While it’s typically included as part of the business plan, the Executive Summary should ideally function as a stand-alone document. Its function is to build enough interest to get you meetings with potential investors. Once you’re at the meeting, then you can dazzle them with your presentation and ready answers. Ideally your Executive Summary should include the following 10 items:
1. Opening Statement. Your initial statement of how much money you are looking to raise and a very brief summary outlining how the funds will be used.
2. Description of Problem/Opportunity. Your answer to the all-important question: What problem am I solving for paying customers?
3. Solution. Your specific solution(s) to solving the problem or exploiting the opportunity. Support your statements.
4. Products & Services Offered. Describe the products and/or services you’re selling, including what makes it/them different and desirable. Explain why customers will buy from you.
5. What is Proprietary? Only include this section if you own intellectual property (e.g., patents, trademarks, copyrights) or proprietary technology that sets you apart from competitors.
6. Target Market(s). Define your target customers. Discuss the size of your target market and its growth potential.
7. Marketing/Sales Plan. Explain how you will reach your customers.
8. Competition. Talk about the competitive landscape relative to your product/service. Highlight your competitive advantage and how you can defend it.
9. Management Team. One of the most important sections. Ultimately, investors are investing in you and your management team. Include the qualifications and experience of each member.
10. Financial Summary. Summarize your financials by showing your total annual revenues, expenses and net income for the first three years (at a minimum). If you will become cash flow positive within your first three years, this is where you state when you expect to reach that milestone.
Keep in mind that a compelling Executive Summary is best written after the business plan. How can you summarize what you haven’t yet written? Writing a great business plan is a process for which there are no shortcuts. It forces you to address all those nagging questions you’d rather avoid but ultimately can’t. Your vision will inevitably evolve and take shape as you think through all the issues, big and small. This evolution is a critical part of the plan writing process, and the results will ultimately show not only in your Executive Summary, but in the business plan and your pitch meetings. You need to write it last and write it well. Once you get in the door, it’s the hook that will entice an investor to look deeper.
ATTRACTING INVESTORS A Compelling Executive Summary in 10 Items or Less - To learn more about this author, visit Diane Tarshis's Website.
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Attracting an investor is like attracting a mate—you want to pique the investor’s interest without showing all your cards at the outset. The perfect vehicle for achieving this delicate balance is the Executive Summary.
The goal of an Executive Summary is to whet the appetite of the investor by presenting a compelling premise, an irresistible hook. Your short (5 pages or less) document is meant to give a potential investor every reason to say “yes” and little reason to say “no” to a face-to-face meeting.
While it’s typically included as part of the business plan, the Executive Summary should ideally function as a stand-alone document. Its function is to build enough interest to get you meetings with potential investors. Once you’re at the meeting, then you can dazzle them with your presentation and ready answers. Ideally your Executive Summary should include the following 10 items:
1. Opening Statement. Your initial statement of how much money you are looking to raise and a very brief summary outlining how the funds will be used.
2. Description of Problem/Opportunity. Your answer to the all-important question: What problem am I solving for paying customers?
3. Solution. Your specific solution(s) to solving the problem or exploiting the opportunity. Support your statements.
4. Products & Services Offered. Describe the products and/or services you’re selling, including what makes it/them different and desirable. Explain why customers will buy from you.
5. What is Proprietary? Only include this section if you own intellectual property (e.g., patents, trademarks, copyrights) or proprietary technology that sets you apart from competitors.
6. Target Market(s). Define your target customers. Discuss the size of your target market and its growth potential.
7. Marketing/Sales Plan. Explain how you will reach your customers.
8. Competition. Talk about the competitive landscape relative to your product/service. Highlight your competitive advantage and how you can defend it.
9. Management Team. One of the most important sections. Ultimately, investors are investing in you and your management team. Include the qualifications and experience of each member.
10. Financial Summary. Summarize your financials by showing your total annual revenues, expenses and net income for the first three years (at a minimum). If you will become cash flow positive within your first three years, this is where you state when you expect to reach that milestone.
Keep in mind that a compelling Executive Summary is best written after the business plan. How can you summarize what you haven’t yet written? Writing a great business plan is a process for which there are no shortcuts. It forces you to address all those nagging questions you’d rather avoid but ultimately can’t. Your vision will inevitably evolve and take shape as you think through all the issues, big and small. This evolution is a critical part of the plan writing process, and the results will ultimately show not only in your Executive Summary, but in the business plan and your pitch meetings. You need to write it last and write it well. Once you get in the door, it’s the hook that will entice an investor to look deeper.
ATTRACTING INVESTORS A Compelling Executive Summary in 10 Items or Less - To learn more about this author, visit Diane Tarshis's Website.
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great usability, good design and very informative
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Linda RichardsonLinda Richardson is the Founder and Executive Chairwoman of Richardson, a global sales training and performance improvement company. As a recognized leader in the industry, she has won the coveted Stevie Award for Lifetime Achievement in Sales Excellence and she was identified by Training Industry, Inc. as one of the “Top 20 Most Influential Training Professionals.” Ms. Richardson is credited with the movement to Consultative Selling and is the author of ten books on selling and sales management, including Sales Coaching — Making the Great Leap from Sales Manager to Sales Coach, and Stop Telling, Start Selling. She teaches sales and management at the Wharton Graduate School of the University of Pennsylvania and the Wharton Executive Development Center. Linda is a frequent speaker at industry and client conferences, has been published extensively in industry and training journals, and has been featured in numerous publications, including The Wall Street Journal, Forbes, Nation’s Business, Selling Power, Success, and The Conference Board Magazine. Learn more about Richardson's sales training and performance improvement solutions at http://www.richardson.com web - Visit Linda Richardson's Website |
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Dianne CramptonDianne Crampton is an executive leadership coach, team consultant, author and president of TIGERS Success Series, Inc. Dianne has been helping CEO's and Executives connect their employees to their core values and goals for over 20 years using the trademarked TIGERS team culture process, which stands for trust, interdependence, genuineness, empathy, risk and success. To download a free white paper on behaviors that build strong teams and behaviors that will predictably tear them down go here. - Visit Dianne Crampton's Website |
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Leanne Hoagland-SmithAre your sales where you want them to be? Will you be one of the few who achieves sales or business success or one of the many who have failed to change? Are you tired of being told you are like everyone else? Then you may find my first book on sales of interest. Be the Red Jacket in the Sea of Gray Suits, The Keys to Unlocking Sales available at Amazon or at http://www.processspecialist.com/red-jacket.htm. This book is a reflection of my no-nonsense approach to improving sales to overall business results. If you are truly committed to making sustainable changes, then I can help you secure a positive return on your investment because I focus on executable solutions not telling you the problems you already know you have. From training to corporate (group) coaching to executive one on one coaching, my approach is to assess, create awareness, build a goal driven action plan and then execute. The bottom line question is "Not do you or your employees know it, but do you or they want to do it?" Please call for a free strategy session at 219.759.5601. - Visit Leanne Hoagland-Smith's Website |
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Anne BarrAnne Barr has over 26 years experience in sales and marketing, six years as a franchisee. She has assisted over 367 business owners and purchasers to achieve their goals in career change, transition and exit strategy. She holds the designation of Certified Franchise Executive from the International Franchise Association, Certified Business Intermediary from the International Business Brokers Association and Board Certified Broker from the Texas Association of Business Brokers. Anne is active in professional organizations, networking groups and volunteers for non-profit entities. As owner/operator of four successful businesses, Anne has proven people skills and enjoys helping clients find the right "fit" in business ownership. Visit www.FranchiseOpportunitySpecialist.com for more information about me and my company. - Visit Anne Barr's Website |
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Stephanie RobeyStephanie Robey is President and CoFounder of Pivot Positive, LLC - an Internet marketing business focused on helping people start work at home ventures. Previously, she was employed at The Search Agency with over 20 years experience in graphic design and 10 years experience in online marketing. She was responsible for launching the Conversion Path Optimization (CPO) unit where she and her team have conducted hundreds of optimization tests for online companies across multiple verticals. She is a successful entrepreneur having started and sold 2 companies and remains on the board of directors of the third, PhotoSpin.com Stephanie began her career in the direct marketing realm creating and producing direct mail for many of the major cable television companies and directly attributes her understanding of Internet marketing to those early offline experiences. Stephanie is a graduate of San Diego State University with a BFA in Graphic Arts and also holds an Executive MBA from the Graziadio School of Business and Management at Pepperdine University. Read Steph's Blog Meet Steph and Dave Sign up for our Free 7-Day BootCamp: Self Employed & Rich - Visit Stephanie Robey's Website |
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