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Tips for presenting a business idea to investors

As a person who has been on both sides of the table, as an investor and as an investee, I can say without doubt that there are certain things investors invariably look for in a person asking them for money. And in everything they look at they are consciously and subconsciously answering the question "Why should I invest my money in you?"

Tip 1: Go beyond the Business Plan.

While a good Business Plan is a given, people often do not go far enough and detail how the operation will be driven from the Business Plan. The Business Plan is the "What" of the idea and the Operation Plan is the "How" of the idea. This includes a detailed, well thought out Cash Flow plan with 3 scenarios high spend, medium spend and low spend. The medium spend is the planned-for spend in the Operations Plan. Further, it's OK (in fact, a good thing) to be part way through your Plans when you present them, because it gives you an opportunity to illustrate that you are proving that you can execute your Plan.

Tip 2: Put your money where your mouth is.

If you have not invested money in you why should I? You should be able to say what you have spent, why, and what positive results you
have achieved from that investment. We have all gone thorough the "3F's" (Friends, Family, and Fools) and laughed about it, but in a cold, hard analysis we should also show how their investments have progressed the idea. Don't be afraid to place a value on your time (and thereby quantify that investment by showing it on your books), but be sure to show that your time/money has been spent productively, otherwise you lose credibility.

Tip 3: Show additional ways you used funding to progress your idea.

Most developed countries have some sort of infrastructure to win grants, sponsorships and aid to progress their ideas. In the USA the SBA is a good example, in Australia the AusTrade grants, and so on. By winning those sorts of grants it not only helps you progress your idea, but it lends credibility to you and your capability, which separates you from the hundreds of other people asking for an investment.

Tip 4: Many investors bet on the jockey and not the horse.

You're the jockey, and if an investor believes in you he'll more likely bet on you. The opposite holds true if he does not believe in you, forget it.

Tip 5: Show where they can add value to their investment.

If an investor can see where they can add value to you and your idea it gives them a sense of control over their investment, plus a sense of emotional involvement,


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