Last week, we have outlined the first four steps of things you need to do to sell your start-up to investors. For the second part of this two-part series, we list the next half of these eight strategies so you can successfully have investors rallying to financially support your idea and turn your start-up into a successful one.
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.
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 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 entrepreneur’s dream to an investor.
Alan Manly, www.alanmanly.com.au, author of “The Unlikely Entrepreneur”