An effective business investment proposition is critical for securing funding and support. When crafting such a proposal, there are several key considerations to keep in mind. Firstly, clearly identify the business concept or opportunity, including details on the product or service, target customers, and competitive landscape. Quantify the capital needs and proposed equity structure. Outline financial projections and return expectations over a 3-5 year timeframe. Specify your credentials and that of the management team in executing the opportunity. Articulate major business and execution risks and plans to mitigate them. Highlight key milestones and timeline. An investment proposal that clearly addresses these areas is more likely to resonate with potential investors and partners.
Clearly identify business concept and opportunity
Leverage the product details, customer persona, market analysis and other relevant research to succinctly describe the problem being solved, product/service uniqueness, and business model. Compare to competitors. Outline the tangible business opportunity and why it is compelling now.
Quantify capital needs and proposed equity structure
Specify precisely how much capital is needed, how it will be used, and the equity stake offered in return to investors. Ensure valuation and deal structure is attractive based on perceived opportunity.
Provide financial projections and return expectations
Develop pro forma financial statements projecting revenue, costs, profitability and cash flows over next 3-5 years. Estimate targeted valuation and returns at exit. Benchmark projections versus industry and other investment opportunities.
An effective business investment proposition sets the right context on the opportunity, capital needs and path to returns. It instills confidence by demonstrating preparedness to execute as a team. Use the guidelines shared earlier when crafting your next proposal.