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POWERPOINT PRESENTATIONS FOR INVESTORS. RANDY HARMON Prepared for the Venture Association of New Jersey’s Maximum Impact Workshop April 20, 2004
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POWERPOINT PRESENTATIONS FOR INVESTORS RANDY HARMON Prepared for the Venture Association of New Jersey’s Maximum Impact Workshop April 20, 2004 This presentation was delivered to empower entrepreneurs to prepare presentations to prospective investors. The slides can be used as a template by entrepreneurs in preparing their own presentation. In addition to this free template, those who purchase our preparation service will receive an instructional article to guide them in preparing their draft presentation
POWERPOINT SLIDES ARE LIKE BUILDING BLOCKS -You build the investor’s understanding of the BUSINESS OPPORTUNITY block by block -The blocks should be arranged so as to tell a COMPELLING story -The presentation must flow smoothly from slide to slide -There is no one correct format -Make sure you have a near complete set before you begin “pitching”
WHAT BUSINESS ARE YOU IN? -What the company does -What industry you are in -Customers and markets MISSION STATEMENT -What the company aspires to become
WHERE’S THE BEEF?WHAT’S COMPELLING? -What unmet need does this fill? -Why is this important? -Why will customers care? -Why should investors care?
MILESTONES -Significant achievements to date -You want to be able to demonstrate that a momentum is building
WHAT THE COMPANY IS LOOKING FOR -USE OF FUNDS -Can they be staged? -Tie stages to milestones
COMPANY BACKGROUND -Founding -Structure -Stage of development -Compelling points regarding origins of company
MANAGEMENT TEAM -The less complete your team, the more difficult it will be to raise financing -Relevant, industry experience -A sales and marketing professional is usually a must -Identify business and scientific advisory boards and marquee advisors
MARKET -Identify and describe -Trends and growth -Demonstrate understanding Note: Investors expect you to understand your targeted markets and customers at least as well as anyone else
NICHES/SEGMENTS SERVED -Focus -Rifle versus shotgun
PRODUCT AND ATTRIBUTES -Don’t overemphasize the technology at the expense of the business opportunity -No more than two or three slides max -Layman’s language -Status of intellectual property
MARKET VALIDATION -Sales -Beta testing -Business Partnerships -Testimonies from prospective customers -Market research
COMPETITORS -EVERY PRODUCT HAS COMPETITION -List individually or by category
COMPETITIVE MATRIX -Matrixes allow the presentation of lots of information in a useable format -X Axis-Critical evaluation criteria -Y Axis-Key competitors or groups
COMPETITIVE MATRIX Criteria 1 Criteria 2 Criteria 3 Price Speed Useful life Competitor 1 $ 28,000 8 units/hr 7 years Competitor 2 $ 37,000 10 units/hr 10 years Competitor 3 $ 31,000 10 units/hr 8 years You Inc. $ 33,000 12 units/hr 10 years
COMPETITIVE ADVANTAGE -How you differentiate yourself from your competitors in a manner that is compelling to your prospective customers -Unfair advantage -Sustainability of advantage -Barriers to entry
SALES AND DISTRIBUTION -How will you open the doors to your customers and get your product to them? -Should be well thought out and demonstrate your knowledge of the industry
FINANCIAL MODEL/HOW YOU WILL MAKE MONEY -Revenue streams -Margins higher than industry norms -Hockey stick growth curve
FINANCIAL PROJECTIONS -Revenue and EBIT for 3 years -Identify key financial assumptions -Investors want “bottom up” sales projections beginning with your first sale
EXIT STRATEGY -How are we going to cash in and get rich?
CLOSING SUMMARY -WHY YOU KNOW THAT YOU ARE GOING TO BE SUCCESSFUL -Repetition of most compelling points
ARE YOU READY? ENTREPRENEURS APPROACH INVESTORS TOO EARLY -Unmet need -Milestones -Sufficiently large market, niches -Management team -Marketing/sales plan -Market validation -Competitive advantage/barriers to entry -Bottom up financial projections