#3 - Qualify the Competition
Start by qualifying your product according to cost or time savings and
revenue generation. Also show your projections for sales growth, how your
product or service is superior to others, and how you intend to exploit
the competitive advantage.
#4 - Present Your Distribution Plan
Be specific as to how the company will sell and distribute its product
or service. Clearly describe the methods and what it will cost to get
the product or service into the ultimate customer's hands.
#5 - Exploit Your Company's Uniqueness
Explain what will give your company a competitive edge in the marketplace--special
attributes like a patent, trade secrets, or copyrights.
#6 - Emphasize Management Strength
Show proof that the company is comprised of highly qualified people who
can cover all the bases. Indicate the incentives that will keep them together,
and how they, the directors, and the advisers possess the necessary credibility.
#7 - Present Attractive Projections
Paint a realistic picture--substantiated by assumptions--of where your
company is going with funding. Be detailed and keep it credible. Good
validated projections and forecasts are impressive.
#8 - Zero In on Possible Funding Sources
As mentioned earlier, it's different strokes for different folks. Design
versions of the plan to fit the idiosyncrasies of each source you plan
to approach. A banker's interest lies in stability, security, cashflow
coverage, and sound returns, whereas a venture capitalist is more interested
in high leverage resulting in outrageous returns. Both want to know how
the proceeds are going to be spent.
#9 - Close with a Bang
Drive home the point that you're offering a good deal. Be definite about
how investors will get their money back and when. Specify the return rates;
state how the risk investor will receive a 30 percent or 50 percent compound
annual return, or whatever you're offering. For lenders, show that their
funds are adequately secured and that your cashflow more than covers their
interest and principal payments.
