In A Document

  • Services
  • Resume
  • CV
  • Letter
  • Biz
  • Online
  • Portfolio
    • Principal Professional
    • Expertise
    • Samples of Work >
      • Online Samples
      • Resume Samples
      • CV Samples
      • Letter Samples
      • Biz Samples
    • Testimonials
  • Blog
  • Contact
  • Services
  • Resume
  • CV
  • Letter
  • Biz
  • Online
  • Portfolio
    • Principal Professional
    • Expertise
    • Samples of Work >
      • Online Samples
      • Resume Samples
      • CV Samples
      • Letter Samples
      • Biz Samples
    • Testimonials
  • Blog
  • Contact

 

Compelling executive summary that wins over Investors

6/12/2017

0 Comments

 
Picture
Few investors these days have the time or patience to read a full business plan, so a better way to catch their eye is with a tightly written and well formatted two-page executive summary.
Once you have their attention, content is key – data from your business plan, including financial projections, how much money you are looking for and a quantification of potential return.
Skip the fuzzy marketing terms, such as "easier to use," "lower cost" and "disruptive technology." Investors want to buy into an entrepreneur with a startup that can provide evidence of an ability to double customer productivity, at half the cost, with patented technology.
 
The summary must cover all the key topics in a full business plan, including the following, in this order:
1. Lead with a painful customer problem and how you solve it.
This is your elevator pitch and customer value proposition, and is your key to getting an investor to read even the remainder of the summary. Skip any history lesson and your vision to change the world. Nice-to-have solutions and customers with no money are not compelling.
2. Show you have a large and growing market opportunity.
Investors expect to see credible third-party evidence that you are targeting a billion-dollar opportunity, with double-digit growth. Focus on a specific market segment to match your solution.
3. Include your sustainable competitive advantage.
Patents or other intellectual property are a real competitive advantage for a startup. Don’t kill your credibility by asserting that you have no direct competition, since to investors that means you have not looked or there is no market.
4. Clearly define your business model.
If you sell for half the price of a competitor, but you lose money on each item, it’s hard to make it up in volume. Remember you are talking to investors, so they don’t associate free with providing any financial returns. Quantify all the key elements of the equation, including price, margin and volume.
5. Highlight why your team is the best for this challenge.
Make sure you name your key players and advisors, and include any prior startup experience and prior experience in the relevant business domain. Professional investors look for the right people more than the right product.
6. Project revenues, costs and investment expectations.
If you are not willing to set targets for yourself, don’t expect investors to commit their funds. Major milestones along the way should also be outlined. When sizing your funding request, be aware of the value of your startup today, since most investors expect an equity share for their contributions.
7. Outline the potential investor return, and payback process.
The best way to do this is to highlight a recent similar company payback to investors, via going public or acquisition exit. 

You may think it’s impossible to get all this information into two pages and still have room for graphics, but the best entrepreneurs do it every day, and they get the funding that more wordy marketing pitches don’t win. 
This outline is not a magic formula, but when key points are skipped, investors see these as red flags, which can push your request to the bottom of the pile.
Most important of all, don’t forget to ask for the order or ask for an opportunity to meet and review your investor presentation and answer questions. Attracting an investor requires building a relationship, not a one-night stand. 
A great executive summary shows the true depth of your character and your plan.

A few more details can be found in this article.
0 Comments



Leave a Reply.

    Articles


    Categories

    All
    Application
    Brochure
    Business
    Capability Statement
    Career Change
    Cold E-mail
    Cover Letter
    Creativity
    CV
    Executive Summary
    Federal
    Follow Up Letter
    Job Interview
    LinkedIn
    Military To Civilian
    Negotiation
    Online
    Opportunity
    Portfolio
    Presentation
    Professional Accomplishments
    Professional Values
    Professional Video
    Promotion
    Recommendation Letter
    Reference Letter
    Resume

    Archives

    January 2022
    December 2021
    November 2021
    October 2021
    July 2021
    June 2021
    December 2020
    December 2019
    July 2019
    June 2017
    May 2017
    April 2017
    March 2017
    February 2017
    January 2017
    December 2016
    November 2016
    October 2016
    September 2016
    August 2016
    July 2016
    June 2016
    May 2016
    April 2016
    March 2016
    February 2016
    January 2016
    December 2015
    November 2015
    October 2015
    September 2015
    August 2015
    July 2015


    Keep in touch

    RSS Feed


    Author

    Ina Turcu,
    Principal Professional 
    In A Document

Powered by Create your own unique website with customizable templates.