How to Present A Business Plan To Potential Investors
Starting a business takes more than just an idea and a business plan. Once you've got your business plan in place, it's time to look for investors who will buy into your vision. A well-constructed business plan creates an ideal foundation for an effective sales pitch. Pitch your business plan in a comprehensive, succinct and persuasive manner that will secure investors.
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Instructions
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Ensure that your business plan contains all the necessary elements of a well-constructed plan. You'll need a cover letter, executive summary, mission statement, product or service description, business and market feasibility analyses and studies, financial data, and resumes for members of the management team.
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Research your potential investors. Determine what types of businesses they've supported in the past and the qualities they seek in start-ups. Find businesses they have invested in and measure those companies' success records. If you're pitching your business plan to a group of investors composed of several individuals or individual companies, look for specific investments and successes similar to your own business.
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Give everyone who has a part in forming the business a role during the presentation, but don't create confusion by including too many people. Include only key players in the presentation. The Ewing Marion Kauffman Foundation's FastTrac entrepreneur program guide titled "Presenting Your Plan" provides business owners with an important tip: "Investors bet on the entrepreneur and the management team; the product or service is secondary." Focus on the talent and expertise from members of your team with substantive roles in the business because they are ultimately responsible for the company's success. Leaders who should have a prominent role in the presentation are the president, co-founders and professionals who have integral roles in the development of the company's products or services.
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Organize your business plan and supporting materials in an easy-to-follow format and provide enough copies for everyone attending the presentation. Construct a multimedia format that includes as many necessary visuals as possible. Use charts and graphs for financial reports and present clear and realistic scenarios to depict how you will use the funds from investors. Illustrate projections that focus on what the investor stands to gain from backing your business idea.
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Rehearse your presentation until you are comfortable with its flow. If you are a sole proprietor, use video recording to capture, play and critique your presentation. Enlist the aid of someone who can give you feedback from an investor's point of view. Practice your presentation and ask for constructive feedback regarding your business model, how convincing your presentation is and investors' concerns about your business structure and its viability. Highland Capital Partners, a team of international venture capitalists, recommends that the actual business plan presentation last 30 minutes, followed by a question-and-answer session. Create a list of potential questions that investors might raise during your presentation and be prepared to respond to questions in a manner that demonstrates your expertise and confidence.
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