Funding & Investors are an investment publication that I have co-authored with James Freeman. We have had many success articles on this very subject. This particular volume covers the basics of how to get funding and investors, how to select a venture capital and private equity fund, what to expect from a venture capital fund and, of course, how to close a funding and / or investor deal. The key issue we return to is how to generate a “seed” of capital for your business, if you are in the early days of your business. As you develop and present your business to potential funders, you will need to explain what is your unique selling proposition. As we write, we believe that there are 10 common core pieces of information to include in your presentation.
When presenting your business plan, you need to first explain to investors why your business will be different from all other businesses in its industry or service category. Next, explain why you anticipate an initial financial backing from investors. Also, include a marketing plan to highlight the unique features of your business as well as how you intend to market it.
Describing the marketing plan is also essential in how to close a funding and investor deal. Your marketing plan will provide investors with a detailed sales presentation as well as a discussion of how they can invest in your company. Be prepared to provide a complete description of your company as well as a detailed roadmap of your anticipated sales and profit projection for the first six months to one year.
You should consider having a letter of credit or letter of intent provided to potential funding sources prior to submitting your application for funding. In this letter, you should provide a summary of your business as well as why it is different than similar businesses in your industry. You should identify how your company will differentiate itself from similar companies in your industry while providing compelling reasons for why it is better. For example, you may point out that you have the expertise in creating new products as compared to other companies in your industry or that you will be able to provide quality customer service.
As part of your presentation, you should provide additional information regarding your business as well as an executive summary. This will provide investors with information regarding the nature of your business and what it is doing. In addition to this, if you are able to provide a positive forecast for your business, it will help to create a more favorable environment for investors to participate in your funding & loan process. In order to provide a more comprehensive picture of what it is that you are offering, it is best to provide a slide presentation detailing your business model as well as the product or service that you are offering.
There are many resources available online that can assist you in seeking private investors. Many private investors also have their own investment research teams. These team members are knowledgeable about the type of business that you are operating as well as the current financial markets. It is important to use these resources in conjunction with the information that you gather through the internet. The information that you gather will assist you in effectively preparing for the meetings that you will have with individual investors.