You might have an incredible idea for a new business and have everything planned out to pitch to investors. This can be a really nerveracking situation for you. You have to be professional and formal when you are presenting a business plan to investors or else they will never give you money. Make sure that you have everything planned out meticulously. Follow this list to ensure that you haven’t forgotten anything or have taken a wrong step when preparing your presentation.
Randomly sending in a business plan
There are plenty of people trying to send in their business plan to investors online. Investors won’t take the time to read every single plan that they get. Sending in your business plan doesn’t guarantee you an instant deal. However, if someone that you know were to refer your business plan to an investor in their network then you might actually have a chance. Try to do as much networking as possible and use your network and connections to help you out.
Having a 50 page business plan
No one has time or wants to read a 50-page plan. Make your business plan and your presentation short and sweet. Sell yourself in the quickest and most reasonable way possible. If you have to write your plan in the form of a paper make it no longer than two or three pages. What is even better is if you present your information in a PowerPoint.
Not having data to back you up
If you haven’t done your research then no one will take you seriously. Investors need to know that you know exactly what you’re doing and that you’re on top of everything. Without a framework investors can’t really understand what your plans are. There are several metrics that you need to include in your pitch such as lifetime value, churn, and customer acquisition cost.
Failing to identify your target audience
Without knowing who will buy your service or product then how will you know if you’ll actually make money? Knowing your target audience is fundamental to running a business. Many people plan everything else for their investor presentation but forget this, one of the most crucial parts of a business plan.
Only having the CEO speak in the pitch
The only way that a business will succeed is if everyone on the team wants it to. If the CEO is the only one putting his all into the company than it will never work. Therefore, when only the CEO speaks at an investor pitch then the investors won’t believe that the rest of the team is truly dedicated. Let your team speak for themselves and prove to the investors that they are as in it as you are.
Not following up
This is one of the most important things in a business relationship. Following up shows the investors that you really care and want to know what they think. It keeps the communication line open for the future and gives them an avenue to respond to you.
Proposing a business plan to investors can be an overwhelming and life changing experience. This list is a great start to ensure that you are on the right path. For a longer list check out forbes.com.