The difference between your Investment Summary & Executive Summary
By Venture Giants
Having a business plan is an absolute requirement when approaching and pitching to angel investors for business capital. Its initial purpose however, is not to provide an angel investor with an overly extensive document at the first meeting, it is to prepare you.
The steps necessary to create a solid business plan will make you more knowledgeable about your business and much better prepared to answer questions that an angel investor will ask. You will also be much better prepared to justify your numbers and back up your projections and assumptions.
Additionally, although they will not want to be burdened with an extensive document at the beginning, they will want to see proof you have taken this step and request to view it prior to making their angel investment.
If you have a business plan than excellent! It's important that you become completely familiar with all aspects of the plan if your funding strategy is to succeed when meeting with a business angel investor.
If you don't have a prepared Business plan than you are not ready to meet with a potential angel investor. Preparing a business plan with all of the required information that an angel investor will look for, helps prepare you to confidently present your business opportunity. You need to go through the process of creating a solid business plan if your funding strategy is to succeed.
Your Executive Summary
Your executive summary is a vital part of the capital raising process and is essentially your elevator pitch condensed into a paragraph. This is best used when communicating by email or an online angel investment matching service as a teaser to attract the initial attention of an angel investor. You must also have an executive summary available to present to an angel investor at your first meeting. They want something that is direct and to the point and highlights all the key points about your business and the opportunity.
Even if they don't ask, it's a great leave behind.
Venture Giants Insider Edge:
Preparing an executive summary is also an excellent way to further educate yourself on the key points of your proposal.
If you do not have an executive summary than this is a part of your investment proposal that requires serious additional consideration.
Once you have created a solid business plan with a short and snappy executive summary you can move on to create and finalise an Investment summary.
Your investment summary is a vital part of the capital raising process and is of particular interest to a potential angel investor because it answers the question of what's in it for them. This is essentially your elevator pitch condensed into a paragraph. What makes this an attractive angel investment opportunity, how much money is needed, how will it be used, what will be the return on investment ( ROI ) and when will they see this return. This can be effective as a teaser to attract the initial attention of an angel investor particularly when using email or an online angel investment matching service.
If you have an Investment Summary already than Excellent! Potential angel investors will be impressed that you recognise the importance of the numbers to the success of the business. However, they will also expect you to be able to justify these numbers and demonstrate a clear understanding of how you arrived at these numbers.
If you do not have an investment summary than please do consider that an investment summary is an essential part of your funding strategy that requires additional consideration. If you don't have an investment summary, you are not prepared to meet with a potential angel investor.
The investment summary is of particular interest to investors because it highlights what's in it for them. This is a great leave behind and something that should be an essential part of the pre-work when preparing to meet with any angel investor.
Venture Giants is a premier UK business Angel investment network and small to mid sized business networking portal that matches active business angel investors with entrepreneurs' seeking investment capital and business funding.
Written for and behalf of Venture Giants Enterprises Ltd. All rights reserved 2009
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