Modern Business Magazine May 2016 | Page 7

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 7