Steps to Growth Capital Self-Study GuideStep 5

5.3 How to Get the Investors' Attention

Now that you know what investors will be asking, you need to consider how you can get and keep their attention. Much of the information contained in your investment proposal can be drawn from your detailed business plan. Your marketing materials may be another good source. Previous proposals you have written for other purposes may provide more raw material for you and your management team to work with.

As you pull the components of your investment proposal together, however, keep your readers — the investors — firmly in mind. Here's a checklist to keep handy as you consider whether to include something you've gleaned from another source. And keep in mind the difference between an investment proposal and a business plan.

Your investment proposal must:

• address your investors' specific information needs;
• explain how your customers will benefit from your products and services, and provide strong evidence of their marketability;
• demonstrate that your management team is experienced and has complementary management and business skills;
• contain a convincing executive summary that clearly differentiates your investment proposal from others;
• provide insight and meaningful information about how your investors will capitalize on this opportunity;
• prove that you have done your homework;
• present believable financial projections with the more important data and assumptions explained and documented;
• show how investors will be able to cash out successfully in three to seven years; and
• provide an objective analysis of your company's strengths and weaknesses, and the risks and opportunities it faces.
  

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