A very good presentation summary with questions and key points to keep in mind for an (would-be) entrepreneur when thinking to go ask for money at the private investors. If it's not the case at least it is a very good way of having a clear picture about a business. I am fully copying it here for two reasons: (1) it is compelling and to the point and (2) my personal archive.
1) WHAT IS YOUR VISION?
- What is your big vision?
- What problem are you solving and for whom?
- Where do you want to be in the future?
2) WHAT IS YOUR MARKET OPPORTUNITY AND HOW BIG IS IT?
- How big is the market opportunity you are pursuing and how fast is it growing?
- How established (or nascent) is the market?
- Do you have a credible claim on being one of the top two or three players in the market?
3) DESCRIBE YOUR PRODUCT/SERVICE
- What is your product/service?
- How does it solve your customer�s problem?
- What is unique about your product/service?
4) WHO IS YOUR CUSTOMER?
- Who are your existing customers?
- Who is your target customer?
- What defines an "ideal" customer prospect?
- Who actually writes you the check?
- Use specific customer examples where possible.
5) WHAT IS YOUR VALUE PROPOSITION?
- What is your value proposition to the customer?
- What kind of ROI can your customer expect by using buying your product/service?
- What pain are you eliminating?
- Are you selling vitamins, aspirin or antibiotics? (I.e. a luxury, a nice-to-have, or a need-to-have)
6) HOW ARE YOU SELLING?
- What does the sales process look like and how long is the sales cycle?
- How will you reach the target customer? What does it cost to "acquire" a customer?
- What is your sales, marketing and distribution strategy?
- What is the current sales pipeline?
7) HOW DO YOU ACQUIRE CUSTOMERS?
- What is your cost to acquire a customer?
- How will this acquisition cost change over time and why?
- What is the lifetime value of a customer?
8) WHO IS YOUR MANAGEMENT TEAM?
- Who is the management team?
- What is their experience?
- What pieces are missing and what is the plan for filling them?
9) WHAT IS YOUR REVENUE MODEL?
- How do you make money?
- What is your revenue model?
- What is required to become profitable?
10) WHAT STAGE OF DEVELOPMENT ARE YOU AT?
- What is your stage of development? Technology/product? Team? Financial metrics/revenue?
- What has been the progress to date (make reality and future clear)?
- What are your future milestones?
11) WHAT ARE YOUR PLANS FOR FUND RAISING?
- What funds have already been raised?
- How much money are you raising and at what valuation?
- How will the money be spent?
- How long will it last and where will the company "be" on its milestones progress at that time?
- How much additional funding do you anticipate raising & when?
12) WHO IS YOUR COMPETITION?
- Who is your existing & likely competition?
- Who is adjacent to you (in the market) that could enter your market (and compete) or could be a co-opted partner?
- What are their strengths/weaknesses?
- Why are you different?
13) WHAT PARTNERSHIPS DO YOU HAVE?
- Who are your key distribution and technology partners (current & future)?
- How dependent are you on these partners?
14) HOW DO YOU FIT WITH THE PROSPECTIVE INVESTOR?
- How does this fit w/ the investor�s portfolio and expertise?
- What synergies, competition exist with the investor�s existing portfolio?
15) OTHER
- What assumptions are key to the success of the business?
- What "gotchas" could change the business overnight? New technologies, new market entrants, change in standards or regulations?
- What are your company�s weak links?
To sum up all of the above: get a f**king Business Plan. It's not that difficult to write a good BP, there are loads of good free guides, templates and examples on the web. The hard part is to get people to see the benefits of having a well thought BP.
The BP is not only important for investors, it also helps you see what your situation is, eventually create a B-plan. It also helps you present your business to other people, like more experience friends who can help out, potential partners, wife and kids.
I had a devastating experience with a small company I wanted to invest in some time ago. The idea was great, they had the development capabilities to make it work, but marketing and management-wise they were blind as a drunk bat. I finally had to let go.
Romanian entrepreneurs just don't see the point. They're all about shoot first, then ask questions, and that really sad.
:) I see what you're saying, and you are so right. It should be noted though that a business plan means more than answering these questions. If not for the people to invest in you, they may help you see what you're doing, what you stand for and who you really are, if true with yourself of course. And IMO this introspection somewhat contradicts the "know-it-all" attitude Romanians tend to have about any field.