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| Investor's Presentation: What is in and what is out? |
While working on an investors’ presentation, first thing to
note is that there is no right, or wrong way to do it. In addition, there is no
definitive way as well! Successful and effective contents of an investor’s
presentation are the contents that get the attention and interest of the investors
from the very beginning. The hold on the attention and interest of the
investors must not lose till the last slide of the presentation.
Investor’s presentation is a sales presentation and is a
hard to sell thing. Selling investors on why they should commit money or
capital is the real challenge for you. A part of this challenge is choosing the
right contents for the presentation.
A possible outline of the contents for presentation is as
under:
1 - Present an overview-slide;
2 - Show basic facts about your business;
3 - Create a picture of sales growth opportunities;
4 - Give brief of Competition and Industry
Analysis;
5 - Present your strategy, or the Game Plan;
6 - Give planned use of proceeds and ROI;
7 - Introduce your Management Team; and
8 - Make a sketch of the big picture.
Present an overview-slide
Include a simple slide with list of what you intend to cover
during the presentation. This list will serve as a framework for the investors
on the receiving side of the presentation. They will find themselves in a
position to have a strategic overall view of the contents. This overall view
will help them expect what is coming after a given slide showing on the screen.
Show basic facts about your business
Use a slide to show basic business facts of interest for the
investors. These facts include your Unique Selling Propositions, real historical
revenue data showing a strong history of sales, the names of current major clients,
and a list of valued contracts, etc. In
addition, you may give a list of any Intellectual Property your business has.
Create a picture of sales growth opportunities
Use a slide to show the current Sales
Funnel your business is using. It may be a potential revenues for each
transaction if historical data is unavailable – case of startup business.
Give brief of Competition and Industry Analysis
Include a general overview of industry in which your
business exists. Show where you exist among your competitors in relation with
overall industry and competitive landscape of revenue. Main emphasis is on your
competitive advantage and showing why you are better.
Present your strategy
Possibly in a listing, outline series of steps i.e. your
strategy and action plan to attain your objectives and goals.
Give planned use of proceeds and ROI
Show, not just tell, in a clear manner how you intend to use
earned money. You may give a simple and vivid break up of uses of revenue into
broader categories e.g. Marketing, Salaries, etc. In addition, include your
financial projections along with your planned use of profit for growing
business and paying dividend, etc.
Introduce your Management Team
Introduce your core team members their relevant education,
experience, and past successes.
Make a sketch of the big picture
This is a series of bullet points that show off your long
term vision, new market segments where your business can diversify revenues in
the future, and other points that demonstrate how your company can be a grand
slam for investors that jump on board now in the long term.
For managing the quality of the contents, I
recommend use of:
1 - Short, sweet and to the point slides;
2 - Data support by research;
3 - Claims and assumptions which are defensible;
4 - Different orders of the above contents to get a better look
and feel; and
5 - A preference for “show”, not for “tell” because it is
presentation.
