Last lesson looked at the ten times theory and outlined how important having a good business pan can be. This lesson looks at how to develop that plan.
Whether selling private investors on the idea of buying a product, making a loan or an investment, it is important to sell the sizzle as well as the steak. Bankers and lending institutions tend to look harder at numbers.
These same numbers may well put private investors to sleep. A banker is in the business of making loans, and has a general idea of what he or she is looking for when your loan application is reviewed.
Private investors however are less likely to know what they are looking for. Your presentation has a better chance of convincing private investors of investing (or lending). So one should think in terms of arousing the investors' emotions in the presentation as well as supporting your story with the facts and numbers.
Your presentation must overcome his fear of losing his money and excite investors to a point that they will take a risk with you.
Here are some of the facts and information that your lender or investor will want to know:
#1] What kind of deal is the money going to be put in and why is this deal exciting and profitable?
#2] Who are you and what kind of background do you have and who are the other people involved? What special attributes do you (and they) have that will help assure that the deal will be safe and or profitable or both?
#3] What kind of security is available if the deal goes sour to assure that the investors will get some or all their money back?
#4] What special benefits are available?
#5] What is the catch?
Next lesson, studies these points more deeply. Until then, may all your business, everywhere, be good!