Presenting your business plan landing kit is an art and a science to which you must devote time if you are going to be successful as an entrepreneur.
When presenting your business plan, it’s important to keep your audience in mind and target your content appropriately.
As you seek to finance your business, your audience can be broken down into two groups: Potential investors and potential lenders. You should tailor your presentation to the differing interests and goals of these two groups and be ready to answer their questions.
What investors are looking for
Investors look into the future to a time when they can cash in, hopefully at a high multiple to their initial investment. Therefore, they are concerned with your growth potential.
- Is there a growing market for your product or service?
- Does it involve breakthrough technology or is it merely a me-too product?
- What would be the exit strategy?
- How much return can investors make on this investment, and when?
Investors typically won’t see an entrepreneur more than once and often will want to listen to you present your business for no more than a couple of minutes.
Prepare a brief, compelling presentation that tells your story, describes your business and explains how you will fulfill a customer want, need or desire. Tell them what you have achieved and why it’s a good idea to invest with you.
What lenders are looking for
Lenders are more concerned with risk and the return of their money with interest. So they look more at revenue, expenses, and other cash flow issues.
Bankers prefer one clear and complete idea over many excellent but vague possibilities. So make sure your presentation is focused and fact-based.
- Is your product priced right for its market niche?
- Can company management control expenses?
- Does the company have the ability to repay its loan and still grow?
- How much are company owners willing to share the risk?
In its risk assessment, a bank will not only look at your ability to execute a project and repay the loan. Your banker will also consider the project itself and ask: “Is this the right decision for this company? Will it contribute to its profitable growth in the years to come?” Therefore, the business plan for the project you want to fund must be clear and succinct.
For more information on borrowing download your free copy of BDC’s eBook How to get a business loan.