An Essential Of Investor Pitching

To attract investors a business plan and Information Memorandum should include the following:

1. Cover page:?Include the company’s name, contact information and company logo.

2. Table of content

3. Company background and opportunity summary:

Provide a quick history of the company and describe the basic market need and your company’s solution. Answer the question, “What is your company’s value proposition?”

4. The market opportunity:

Address the following areas and answer the questions, “Who are your customers? How are you going to make money?”

Market and industry:

Include relevant?research on your market?and industry, such as market size, market segments, your product’s niche, the market’s growth prospects, new trends and technologies, and any barriers to entry.

Competition:

Demonstrate that you fully understand the challenges from outside competitors, both large and small. Include a description of competitors’ products, distribution channels, pricing and partnership. Consider developing a competitive matrix that lists the key attributes of your product and your competitive advantage and?positioning.

Customers and end users:

Provide an outline for the target customers for your product or service. Refer to any customer testimonials in this section and include the document in the appendix or the?due diligence?package

Sales and marketing strategy:

Explain how you will get the product into the customers’ hands. Provide a revenue model and describe the sales cycle and process. Include a description of the channels to market and your marketing communications strategy.

5. Products and services:

Describe your product or service; include photos or screen shots if it is a software product. Detail how your product is scalable and when you plan to launch if you have not already done so. Outline the next R&D steps to further build on or improve your offering. Include a discussion of?intellectual property?(for example, patents, copyrights, trademarks) and any technology partnerships. You may also highlight your competitive advantages.

6. People:

Investors are putting their money behind you, so be sure to highlight how you’ve recruited the best team available to build the company. Include the list of advisors or board members as well as service providers. Get the approval of any directors and advisors before including their information in the document. If you are planning any key hires in the near future, and you will be using the funding to build out the team, include the roles in this part of the discussion.

7. Financials:

Include your key assumptions and provide two scenarios. Essential information to include revenue drivers / cost drivers analysis, trends of past, present future for total sales, business / geographical revenue segment, operating margin, business mix pie for past, present and future estimate, debt equity ratio, total net worth to total outside liabilities, return on capital, return on assets, major capital expenditure obligation. Customer acquisition cost, Long term value of customer, plan to discharge long term debt like obligation, contractual obligations etc

8.?Sources of funding and use of proceeds:

Sources of funding:

Describe investment by principals, prior equity investments, debt (if any), cash from operations and total funds raised to date

Use of proceeds:

Describe how you will use the funding. Examples may include sales and marketing, research and development, recruiting costs and salaries of new hires, equipment, capital expenses, legal and accounting, which will total to the amount you are targeting to raise in outside financing

9. Milestones:

It’s 3 phase reflection cycle (Past / Present / Future)

Based on the appropriate timelines for the individual milestones, detail the actions your team will focus on to further build the organization’s value. Actions include key hires, new financing, sales milestones, new product launches and strategic partnerships and any other growth / expansion plans

10. Appendices:

Include anything relevant, including detailed bio of founders, patent information and customer testimonials etc.

For further details and support on developing a detailed business plan, feel free to reach out author at?[email protected]The information and exercises will provide a framework to help you organize and articulate your thoughts, we write it financially. Wishing you a thoughtful and Impactful investor pitching time.