If your company is attempting to raise capital, you need to be able to demonstrate the potential to generate the revenue and profit levels shown in your budgets.
A compelling offer includes commentary on a range of issues:
Identifiable customers: If your company already has customers, you should include an overview of how you attract customers and, in particular, how you are going to attract the new customers that you need to meet your budgeted sales target.
Is there a global opportunity for your products/services? If so, you need to include the details as to how you are going to implement that strategy.
What is the growth strategy for your company? Include details of the strategies that have been developed, to ensure that the growth targets that are discussed in the business plan are able to be achieved, and that the revenue to be generated will be sufficient to ensure that the targeted return on investment will be achieved.
The execution strategy is very important. Has the company assembled a team of key executives who can implement the strategies contained within the business plan? This can be one of the real problem areas for a lot of young companies. It all sounds easy when sitting round the table documenting strategies. However, the actual execution of those strategies can be very challenging, tiring and will identify any shortcomings that have crept in to the interviewing process.
Leadership team: Have clear job descriptions been determined for each leadership team position? Do any of these executives require additional training or mentoring so that they are fully equipped to perform their role?
Exit strategy: Investors are very interested in the directors’ exit strategy for the company. Is it realistic?