Business Investment Tools

For many small businesses, a key component to their survival is having adequate funding. Not only is money needed for launching a business, it is essential for expansion as well. But not everyone is pitching & investment savvy. So finding the right tools to help you learn about how best to approach investors & what to say when you meet them is crucial.

What is Pitching and Investing?

Pitching and Investing is the process of businesses owners and entrepreneurs meeting with banks, organizations, or individuals to obtain funding for their company. While there is no guarantee a person will receive funding, being prepared for the meeting is critical. To increase the odds of receiving funds, the following information should be readily available to share:

Business plan. A business plan is the company blueprint. It details where the company is currently and its future direction. It explains in detail the goals of the company and how they will be attained. Having a business plan lets potential investors know you’re serious about your business and have plans in place to help it succeed.

Non-disclosure agreement. Obtaining funds can take time, and a lot of meetings with many investors. In order to protect their ideas, many business owners will draft a non-disclosure agreement. Also known as a confidentiality agreement, this legal contract prevents all parties from discussing their business with another person without consent.

Pitch deck template. A pitch deck template is a slideshow presentation that highlights key points about the business for interested investors. These presentations can be shown in a variety of settings, ranging from small meetings, webinars, and large funding parties.

In addition to highlights of the business plan, other information added to the pitch deck include the following:

•         Company info
•         The business concepts
•         Problems (or needs)
•         Solutions provided

Financial Forecast. The financial forecast is a report that details if a company is reaching its current and projected monetary goals. It can also highlight future scenarios and how it will affect the company’s bottom line and profit potential. A financial forecast is key to obtaining funding: investors want to see where their money is going, and if the company will be profitable in the future.

Executive Summary. Also known as the investor summary, the executive summary summarizes the entire document. It tends to be the read first and often includes the following info:

•         Background info
•         Statement of problems or proposal
•         Analysis
•         Conclusions

The executive summary is considered by many to be the most important part of a business plan.

Term Sheet. Term sheets are non-binding agreements that provide information such as the general terms and conditions for the investment. Often used with start-up companies, they are popular with venture capitalists. Term sheets tend to be straight forward and in bullet form. Most have the following sections:

•         Funding/investment amount
•         Percentage stake
•         Voting rights
•         Corporate governance
•         Investor commitment
•         Liquidation

Term sheets provide general details but help to decrease misunderstandings among the parties involved.

Startup valuation calculator. This calculator uses the Scorecard method, made popular by Angel Investors. Primarily used for businesses that aren’t generating revenue, the calculations used can provide a general idea of what the business is worth at its current stage.

Putting it All Together

In order for businesses to obtain additional funding, having a plan of action is critical. While getting additional funding is not guaranteed, being equipped with a detailed pitching and investing template can increase the probability of receiving much needed funds.

Many business owners may be unaware of the various items needed to attract the attention of investors. Fortunately, Docushop provides each of these vital tools in one bundle, giving you all the tools needed to present your idea to all types of investors.

In addition to the vital information described above, Docushop includes the following bonus templates:

•         Business Plan Writing Guide
•         Pitching and Investment Guide

Each of these are designed to not only educate, but better equip a business owner for their meeting with investors. For more information click HERE.

A great way to obtain adequate funding for your business is by obtaining investors. Our Pitch and Investment Guide may be the key to getting the funding your business needs.