| Any discussion on investors and entrepreneurs quickly | | | | demonstration you have a different discussion. |
| turns to the business plan. How important is it and | | | | You move from, "will it work?" to, "how to make it |
| what should it contain? The best business plan is the | | | | bigger, faster, better?" |
| investor pitch. It is short, agile, flexible, and it can | | | | Show Me a Customer |
| make money. Here is how to build one... | | | | Investors love customers. If you can show them one |
| Contact Information | | | | or two that is even better. Have a satisfied user tell |
| Tell them who you are and how to contact you for | | | | your investor why they bought. Have them present |
| follow-up. A business card is not enough. Make sure it | | | | the obligatory problem/solution slide. |
| is on the cover and the closing page of the | | | | Why Do People Buy? |
| presentation. | | | | The customer may have already covered that. But, |
| Your contact information should include standard | | | | short of having an actual customer tell the story help |
| name, email, and phone; but, also include things like | | | | your investor see that person. |
| website, blog, and Twitter address. You want them | | | | I always think stories and use cases work much |
| to tune in to you for the long term--RSS and Twitter | | | | better than demographics. A mountain of data and |
| follows do just that. | | | | bar graphs don't come close invoking the emotion |
| The Team | | | | reaction to millions of people from elementary to |
| Most investor presentation boiler plates put this at | | | | geriatric with signature white earphones streaming |
| the back, but I think it belongs in the front. This is | | | | from their ears. |
| what a venture capital firm is buying. Chances are the | | | | How Do You Find These People? |
| business plan will not survive the first six months. | | | | This is really the million dollar question, right? How do |
| Hopefully, you have assembled a smart, talented, and | | | | you get those bar graphs full of people sending you |
| agile enough team to pivot to a stronger plans. | | | | checks or swiping their credit cards on a regular |
| Presenting the team should be about talents and | | | | basis? |
| proven execution, even if on a smaller scale. | | | | This is where a good start accelerates your |
| The Big Idea | | | | opportunity. Try to demonstrate that you have at |
| The idea needs to be big, but it needs to be | | | | least partially figured this out. Show and where you |
| consumable. Can the investor get it in 30 seconds or | | | | have gotten early adopters and beta users. Is it |
| less? Can a customer get it in 10 seconds or less. | | | | something that can be scaled? Does it go beyond |
| Ideas need to have a problem and solution, but don't | | | | friends and family.? |
| forget the fun. A lot of the most popular and well | | | | Who Else Wants This Market? |
| funded ideas in today's market are obsessive time | | | | The competitor slide. Don't hide it, they are going to |
| wasters--Twitter, Facebook, Myspace--with a | | | | find out anyway. Same holds true for your |
| secondary hint of value and productivity. | | | | prospective customers. Create a clear path of |
| The Big Market | | | | differentiation and how you are going to leverage |
| There are a lot of factors that go into selecting a | | | | that path. The "we are better than them" sales pitch |
| venture to fund, but this is what sends investors on | | | | does not work. |
| a hunt for companies. This also what makes | | | | Have a plan. This is also when asking questions pays |
| investors look like herds of sheep from time to time. | | | | off. Present an idea, but ask for suggestions, |
| If I tell you that MySpace has millions of people | | | | recommendations, past experience--get some free |
| looking at their web pages every day--then I am | | | | consulting from the investors. |
| looking for the next MySpace. | | | | Why Do I Care? |
| Find a big market. Find macro-economic trends. Build a | | | | Why do I care? The "I" being the investor. It is time |
| business around or in them. | | | | to make it personal. How will it make the investor |
| Show Me the Product | | | | money, increase the credibility of their firm, |
| Nothing sells investors like a ready for market beta. | | | | accelerate other portfolio companies? This is the |
| Ideas are hard to grasp and each individual is going to | | | | critical moment, this is your primary goal. |
| envision it differently. If you can reduce it to a | | | | Make them want the investment because they see |
| working prototype, beta, or production | | | | your vision. |