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When seeking funding from angel investors, you need to "sell" the company, so they can sell more of your products and services to more customers.
Startup entrepreneurs need to adeptly demonstrate products and services, communicate need and interest in the market, share accurate financial information and present their vision of what they believe their companies could be with additional funding.
Approaching and presenting to angel investors can be intimidating for small business owners. What information do you need? How should you present it? What should you say?
According to Gary Kravetz, Santa Barbara SCORE's past chairman, "The first evaluation from angels will be on the quality of your presentation document. If this does not seem professional, you may not have another chance to be considered."
He recommends using a PowerPoint presentation when you first pitch to angel investors.
"Most angels prefer entrepreneurs to present their business concepts that way," Kravetz said.
He suggests your PowerPoint presentation should include:
-- An introduction to your company and its purpose.
-- The customer problem your company has set out to solve.
-- The solution needed to solve that problem.
-- Explanation of the product or service you've created to provide that solution. Include why your product or service is unique and why now is an ideal time to introduce it or expand its availability to the market.
-- Your business model.
-- Your marketing and sales efforts.
-- Your competitors.
-- Your management team and its experience and capabilities.
-- Your key metrics and financial results thus far -- and your projections for the future.
-- The proposed deal you'd like to explore with an angel investor.
"Your PowerPoint should be mainly graphics and key points. If the angels are interested, they may ask you for more detail," Kravetz said.
Preparedness and professionalism will help you put your best foot forward, so give your presentation the time and attention it requires.
If you need guidance, consider reaching out to your local SCORE chapter to talk with a mentor who has experience in helping entrepreneurs prepare to approach investors.
To contact the SCORE office at 3900 Industrial Blvd., Suite 8, Altoona, call 942-9054, email score575@ atlanticbb.net or visit www.alleghenies.score.org.