perspective investors wants questions to ask equity pursuit bank financing executive summary samples...
TRANSCRIPT
Perspective
Investors Wants
Questions to Ask
Equity Pursuit
Bank Financing
Executive Summary
Samples
Getting Started
1
Getting FinancedGetting FinancedGetting FinancedGetting Financed
Writing a Successful Financing-Focused Executive Summary
1. Investors/Lenders
2. Questions
3. Equity
4. Debt/Loans
5. Executive Summaries
Perspective
Investors Wants
Questions to Ask
Equity Pursuit
Bank Financing
Executive Summary
Samples
Getting Started
2
Financing PerspectiveFinancing Perspective Innovative Approach
Financing PerspectiveFinancing Perspective Innovative Approach View Your Business As
• A marketable asset• A source of long-term wealth• A creator of jobs• A source of investment income
– Yourself– Others who believe
www.Cash4Impact.com
Perspective
Investors Wants
Questions to Ask
Equity Pursuit
Bank Financing
Executive Summary
Samples
Getting Started
3
What Investors WantWhat Investors WantWhat Investors WantWhat Investors Want
• A strong return on investment– Ranges from 8% (friendly, debt) to
40%
• A clear pay-off date (exit strategy)– Typically, 3-7 years
• A strong management team• A base valuation of company• A plan to accomplish goals
www.Cash4Impact.com
Perspective
Investors Wants
Questions to Ask
Equity Pursuit
Bank Financing
Executive Summary
Samples
Getting Started
4
Ask These Questions Ask These Questions First!First!
Avoid limiting your optionsAvoid limiting your options
Ask These Questions Ask These Questions First!First!
Avoid limiting your optionsAvoid limiting your options1. How much money do I need?2. What is the money for?
1. Need working capital? Want to expand sales and marketing efforts?
2. Need funds for software development? Or to expand company across all areas.
3. What are your near, mid-range, and long term goals for the company?– Do you intend to sell the company soon? Do you
intend to grow through partnerships?
Asking the right questions 1st is key to deciding source and amount. Better questions = better decisions.
www.Cash4Impact.com
Perspective
Investors Wants
Questions to Ask
Equity Pursuit
Bank Financing
Executive Summary
Samples
Getting Started
5
Equity PursuitEquity PursuitEquity PursuitEquity Pursuit
• Investor profile sheet– Introduces company and piques interest
• Executive Summary– Provides more details to further interest
• Business Plan– Full details including financials and
projections after signing a conf. agmt & LOI
• Supporting material– All material requested after LOI or agmt.
www.Cash4Impact.com
Perspective
Investors Wants
Questions to Ask
Equity Pursuit
Bank Financing
Executive Summary
Samples
Getting Started
6
Bank FinancingBank FinancingWhat You Need for AccessWhat You Need for AccessBank FinancingBank Financing
What You Need for AccessWhat You Need for Access
• Abbreviated business plan /Executive Summary
• Pro-forma business financials (3 yrs)• Financial statements (2 yrs)
– Audited (best), reviewed (good), compiled
• Tax returns– Company
– Personal
• Aged receivables, aged payables• Explanation of any negative business items
www.Cash4Impact.com
Perspective
Investors Wants
Questions to Ask
Equity Pursuit
Bank Financing
Executive Summary
Samples
Getting Started
7
Equity FinancingEquity FinancingWhat You Need to FinalizeWhat You Need to FinalizeEquity FinancingEquity FinancingWhat You Need to FinalizeWhat You Need to Finalize
• Business plan• Pro-forma business financials (5 yrs)• Financial statements (3 yrs)
– Audited (best), reviewed (good), compiled
– Tax returns for company if no reviewed
• Contracts, agreements, other due diligence-requested items
• Explanation of any negative business or personal items
www.Cash4Impact.com
Perspective
Investors Wants
Questions to Ask
Equity Pursuit
Bank Financing
Executive Summary
Samples
Getting Started
8
Abbrev. Business Plan Abbrev. Business Plan Components -1
Abbrev. Business Plan Abbrev. Business Plan Components -1
• Company Overview / Business Description– Type, location, industry, sales
• Products/Services – Description– What company provides
• Market Overview / Opportunity– Industry and market background
www.Cash4Impact.com
Perspective
Investors Wants
Questions to Ask
Equity Pursuit
Bank Financing
Executive Summary
Samples
Getting Started
9
Abbrev. Business Plan Abbrev. Business Plan Components-2
Abbrev. Business Plan Abbrev. Business Plan Components-2
• Competitive Advantages– What makes you stand out from your
competitors
• Strategy– What you will accomplish, when, & how
• Management– Management team bios, Advisory Board
www.Cash4Impact.com
Perspective
Investors Wants
Questions to Ask
Equity Pursuit
Bank Financing
Executive Summary
Samples
Getting Started
10
Abbrev. Business Plan Abbrev. Business Plan Components-3
Abbrev. Business Plan Abbrev. Business Plan Components-3
• Investment or Financing Considerations– Information pertinent to lenders or investors
• Summary of Financial Information / Financial Analysis– Snapshot of financials including customer
concentration
• Sources and Uses of Funds or Proposed Financing
www.Cash4Impact.com
Perspective
Investors Wants
Questions to Ask
Equity Pursuit
Bank Financing
Executive Summary
Samples
Getting Started
11
Additional Information:Solving the Capital
Equation: Financing Solutions for Small Businesses
Available on Amazon
Or get the ebook
Help! I Need Money for
My Business Now!!www.Cash4Impact.com
Getting StartedGetting StartedGetting StartedGetting Started
Perspective
Investors Wants
Questions to Ask
Equity Pursuit
Bank Financing
Executive Summary
Samples
Getting Started
12
Thank You! Tiffany C. Wright
The Resourceful [email protected]
Follow my blog,
Small Business Finance Forum: www.Cash4Impact
formerly http://blog.smallbusinessgrowthcapital.com
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