Tips For Presenting to Investors

[Eric Lyon]

(This investor presentation tips article is geared for U.S. business operations and may be different for each county, state, & other countries. The below should not be construed as legal advice and is meant simply as an informational article to help get you started in your research. We advise that you do all you own research and consult with a licensed business and financial consultant for up to date and accurate process information.)

Just a few helpful tips to include in your presentation to motivate an investor. But first a reality check.

Reality Check
New small business start-ups don't always understand the difference between having a need for capital investors and being ready to actually ask for an investor. What's that mean? When a small start-up is motivated by a strong sense of need, the message they send to investors is similar to some of the following:

• I need help to bail me out of my bad management choices and limited capital I had.
• I'm scared to invest more of my own money, so I need yours.
• Nobody else will invest in my business so I need you to help me out.

On the other side of the spectrum, when a small business start-up has actually done their research, understands how to run a business, and present a well organized proposal package to an investor it sends some of the following messages:

• I understand my business and I'm ready for a partner to take this to the next level with me.
• I have hands on experience with my product, my customers, and I'm entertaining the idea of a capital investor to speed up the growth process.
• I have conducted ample research with various financial institutions and private lenders. I decided to reach out to you because you seem like the best match for my needs.

Formulating a Business Plan to attract investors

Basic Executive Summary

• Mission Statement – Explain what your business is all about.
• Company Information – Short statement covering when your business was established, founders name(s) and their roles, number of employees, and the businesses physical location.
• Growth Highlights – Examples of growth (financial or market highlights). Graphs and charts would be perfect complements.
• Products/Services - Describe the products or services you're providing.
• Financial Info. – If you are seeking an investor, include all your information about current finances (E.g. Profits / Loses / Debts / Overhead / Advertising costs / etc.).
• Future plans – Give details about where you would like your business to be in the next 1, 5, 10 years and what the expansion entails.

Be sure to also include additional information for your target investors such as, but not limited to:

• Your current investment needs.
• Future investment needs over the course of five years.
• Your intended use of investment if received.
• Strategic financial planning for the present or future, such as but not limited to: buyouts, acquisitions, debt repayment plan, or selling the business. These are extremely important to an investor since they will directly impact your ability to repay the investment / loan in the future.

 

[damic25]

These are fantastic points and tips. I wanted to post a comment to bring this thread back up and hope a few more people get to see/read this, as it certainly deserves more views. These are all excellent points that everyone running a business (small, medium or huge) should know and follow.

Thanks for sharing Eric!