How to Present Your Business Plan to Venture Capitalists

The hardest part is getting in the door. Once you've done that, you'll have about 60 minutes to show why your business could be the next big thing. Your presentation to a venture firm should be interesting, informative and well-prepared.

Instructions

Difficulty: Moderately challenging

Things You’ll Need:

• Joke Books
• Coffees
• Antacids
• Aspirins
• Boxing Gloves

1. Conduct your own due diligence on the venture firm prior to the meeting. Find out about its focus, philosophy, successes and strengths. Firms differ in all of these areas, and you want to make sure you find the right one for you.
2. Interview the venture firm. Prepare a set of questions you want to ask during your meeting. The best venture firms view their relationships as true partnerships, and that is what an entrepreneur should expect as well.
3. Focus your presentation more on the specifics of what you are going to accomplish with the capital requested, and less on high-level market statistics. Try to keep your presentation to 1 hour.
4. Leave time for questions and answers afterward.
5. Be aware of the time available, and cover the important points within that period. Maintain control of the presentation's flow and do not stray from the topic at hand. However, be prepared to digress from your presentation if requested by the venture firm. Be ready to jump back into your presentation after you've addressed the firm's questions.
6. Have important documents - such as your company's 12-month operating plan, your cash flow projections, a customer reference list (if applicable), and a current capitalization chart (who currently owns what) - available for review. You may want to provide handouts to your audience so that they can follow along while you discuss this information.

Tips & Warnings

• Have backup plans in case of audiovisual failures and connectivity troubles for live Internet demonstrations.
• Be prepared to stray from your rehearsed presentation. Often, venture partners will ask specific questions about areas they're concerned about. The best entrepreneurs can address those questions immediately and then keep the overall presentation moving to a conclusion.
• Try to avoid using phrases like "Show me the money!" Most VCs have seen "Jerry Maguire" and would rather hear Pink Floyd ("Money, it's a hit....")
• Maintain a positive risk-to-IPO ratio (the number of times you mention "risks" to the number of times you mention "IPO," or initial public offering of stock). Be forthright about the risks inherent in your business.
• If the presentation goes really well, have your company's bank wiring instructions handy. Include this information on a slide and present it if appropriate.
• If the presentation isn't going well, don't worry. Relax and have fun. A good sense of humor is essential to business success these days.