MODERN BUSINESS
Step two: Sell your team
The product may look good but
the team taking the product to the
next step is what the investors are
investing in. Polished CVs of all the
team members is a must. Then the
challenge comes when an investor
wishes to meet your team members.
Practise for such an event. It is
unfair on your team to ambush them
and just hope they can introduce
themselves and talk about the
project. A confident team is more
likely to impress than folks who
look nervous and unsure. Practise
interviews with investors. That way
you will also be more familiar with
questions that an investor may ask.
Remember your team has to be able
to present a believable story. It is
your responsibility to lead the team
to success.
Step three: Show your
team is invested
Investors will want to see that your
team is on fire. Eating and sleeping
this project to get it out on time and
overcome every obstacle that comes
along. Reward programs based on
KPIs will persuade an investor that
your team have every good reason to
go the distance to the final and most
likely late release of the product.
Step four: Sell the
business plan
Most investors have seen many
business plans. One template looks
just like another. Many business
plans scream that the authors are
under duress just documenting what
the product is. Then of course the
sales figures match perfectly the
expected return (being many times a
bank deposit return). All businesses
have cycles and all companies
have good and bad years. Your plan
should be realistic. Many investors
know from experience that a start
up project will cost twice as much,
take twice as long and be twice as
hard as the business plan predicted.
Sometimes it is best to share the
truth that it is a real risk. Walk the
investor through all the assumptions
and explain why it is a great product
or service. The plan will need to be
sold, not just presented.
Step five: Blue Sky
Be bold. Dare to say what you really
think. If you believe that your product
or service will set the world on fire,
say so and back it up with why.
Write it in detail and then redraft to
be as succinct as possible. A few
examples of start ups that took off
would be a good idea.
Step six: the exit
The investor will want to now that
your idea is so good that it will take
off and is not just a way to fund a
company that will keep everyone on
your team in a job and pay a modest
dividend. That covers the investors
exiting. Then to really convince them
that you are an entrepreneur, set
the goal in turnover and profits and
therefore market value for when you
will exit or sell down some of your
shares.
make it happen! A picture of your
office as it is, maybe not too untidy.
Professional but fun, with folks who
look like they love their work!
Step eight: the sizzle
The business plan template will
guide you step by step. But it won’t
get the investor to take that fateful
step and risk their money. Now is the
time to be brutally honest. Tell them
like it is. This investment is for those
who dare to be different. Only for
those who have a proven record in
risk taking and winning.
Remember to step back from your
position as an advocate of your plan
and ask yourself if you would invest
your life savings if this business
plan was presented to you. Having
the boldness to be honest regarding
the risk and the personality to lead a
team along with selling the dream is
all part of the sizzle that will sell an
entrepreneurs dream to an investor.
Step seven: the vibe
There is no business like show
business. Any presentation of the
business plan has to be exciting.
Therefore, to capture that excitement
you will need pictures of the product,
the team, the likely customer,
complete with smile. Something
to capture the culture of the team
that will work long and hard to really
Alan Manly is an entrepreneur with
extensive experience owning and
managing SMEs. He is also the author
of When There Are Too Many Lawyers…
There Is No Justice ($24.95), visit www.
alanmanly.com.au
May 2016
ModernBusiness
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