Business presentations – Tell the whole story

Editor’s note: “The Angel Connection” is a regular feature in WRAL Local Tech Wire. LTW asked consultant Bill Warner to share advice for entrepreneurs seeking angel investors and/or venture capital investment. He is chairman of the Triangle Accredited Capital Forum, an angel investor network with over 100 members throughout the Southeast.

RESEARCH TRIANGLE PARK, N.C. - Having worked with hundreds of business owners to help them put together effective business presentations, the most common shortcomings are the completeness of the story, the effectiveness of the management team and what’s in it for the investor.

Incomplete Story

Many presentations omit one or more areas of information, causing the audience to question whether the business owner actually understands their business. By having a complete story, you show that you know what they need to know.

The story line has to be a logical flow that demonstrates there is a:

• Compelling opportunity and attractive solution
• Large and growing market with well understood buyers
• Competitive product that meets the buyer’s needs
• Workable marketing approach
• Viable path to sales traction and revenue attainment
• Management team that can execute
• Solid financial forecast
• Great deal for investors

Weak Management Team Description

One of the most important parts of a presentation is the description of the management team. Too often this part of the presentation is given superficial thought. The management team has to include the right people to actually execute the business strategy and plan, achieving the expected business results. Show that you have the right people to do the job by pointing out their management and leadership experience, the prior results they have achieved, their relevant company and industry experience, and the strength they bring as a team that is working well together. If the right management team is not shown to be in place, investors will not invest and employees won’t join the company.

Don’t Explain The Deal

We see too many business owners who really don’t understand what financing they are asking for, what they are going to do with it, and what they should offer the financier. Business owners who are going for financing really should understand the fundamentals of the financial forecast and the dynamics of the financing transaction they need. After all, it’s your business. If you care about the end result of your business, you better know what you are going to get out of it and what you are going to share with others.

About the author: Bill Warner is the managing partner of Paladin and Associates, a business consulting firm in the Research Triangle Park area of central North Carolina, and is the chairman of the Triangle Accredited Capital Forum, an angel investor network with over one hundred members throughout the southeast.