Entrepreneurship. Rhonda Abrams
id="ulink_5f5c0986-d44e-5ea1-be59-2e52ef4cedfd"> Language that conveys success
Convey realistic optimism and businesslike enthusiasm by following these guidelines:
■ Employ a straightforward, even understated, tone.
■ Avoid formal, stilted language; be natural, as if you were speaking to the reader in person.
■ Use clear, active language.
■ Avoid passive verbs and jargon.
■ Always be professional.
■ Avoid slang, and don’t be “chatty.”
■ Instead of using superlatives like “the best” or “terrific,” provide specific information that proves you’re doing something right.
■ Use positive comments from third-party sources, if possible.
■ Use business terms.
Five crucial minutes
Although you may spend five months preparing your plan, the cold, hard fact is that an investor or lender can dismiss it in less than five minutes. If you don’t make a positive impression in those critical first five minutes, your plan will be rejected. Only if it passes that first cursory look will your plan be examined in greater detail.
Distributing and Presenting Your Plan
Whether you intend to use your plan internally or externally, you must consider how you can best distribute it for greatest impact and how to make the finished plan an effective instrument for achieving your aims. Although a banker will probably be satisfied with only a written plan, an investor or strategic partner will probably want a digital presentation, such as a PowerPoint, as well.
A word about confidentiality: Nondisclosure agreements
Although most new entrepreneurs are probably overly concerned about issues of confidentiality, you may want to draw up a nondisclosure agreement, or NDA, for the recipient to sign before receiving your plan. However, many professional investors—particularly venture capitalists—don’t sign NDAs. They see so many plans in so many related industries that they would inevitably have a conflict.
To best protect your information, be selective about to whom you send your plan. Research your recipients to make certain they haven’t already funded a competitor. Check their reputations for honesty and discretion. Deal only with reputable people. On top of that, limit the number of copies of your plan in circulation, and omit from your plan highly technical, sensitive information. You can provide that information later to only the most serious sources of potential funding.
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Preparing a digital presentation
Most investors now expect to first see your business plan’s basic info and highlights in digital form. Expect to be asked for your “slides” and financials. However, you still need a written plan, either to be reviewed before you’re granted a meeting or to leave behind after you meet with potential investors.
In some cases, you won’t present your plan in person. Many investors will likely ask for your slides before they’ll even consider looking at your plan. In that case, you’ll send your presentation electronically. For this reason, you must create a presentation that’s compelling enough to stand on its own without a presenter.
NINE SUREFIRE WAYS TO RUIN YOUR BUSINESS PLAN
Consider embedding video or audio into your slide show. Your content can include a prototype if you have one, a demonstration such as how your service will be performed, a look at your location, or anything else that will make your plan more comprehensible and exciting. You can link to a password-protected YouTube video if you have one. You may also choose to put the slides online on a password-protected site.
12 CRITICAL SLIDES
| SLIDE NUMBER | SLIDE NAME | SLIDE DESCRIPTION |
| 1. | Title Slide | Your company’s name, a short company description, name of presenter(s) if presenting in person |
| 2. | Your Elevator Pitch | A succinct description of your products or services, market, and competitive advantages; use vibrant language; if possible, embed audio or video to demonstrate your product or service |
| 3. | Size of Opportunity | Investors want to know the potential size your company can grow to and your plans for future development |
| 4. | Your Specific Target Customers | Who they are and the customer needs that your product will meet |
| 5. | The Market Size | Numbers and dollars, past growth, growth forecasts |
| 6. | The Competition | Division of market share, how your product compares to theirs, your value proposition in comparison to the competition’s, and barriers to entry |
| 7. | Your Team | Who they are, past successes and experience, and why they’re qualified to do the job |
| 8. | The Business Model | How you’ll distribute your product, pricing strategies, how you’ll reach your customers |
| 9. | The Time Line | When you expect to reach key milestones |
| 10. | Financials | A brief summary of key points from your income statement, balance sheet, or cash flow projections |
| 11. | Funding | How much you’re asking for in this round, how many future rounds you expect, how much you’ll request during those rounds, and how you’ll use the funds |
| 12. | The Investment Opportunity | Potential exit strategies and financial return for investors |
Of course, the presentation should contain all the major points of your business plan. You need not present them in the exact order of the written plan, but you may have to explain some elements before other points will be understandable. If you make your presentation in person, the investors will interrupt you to ask questions, challenge your assumptions, and so forth, so make certain you get to your most important points early in your slides.
Adjust the content of your slides according to the knowledge base of your audience. You don’t