1. What problem does your business solve? Explain the size of the market, how much of the market you can get and why you think you'll get it. It's always a good idea to put a graphic about your market here so that visual learners can grasp what you are saying. Talk about your competition briefly. If you don't think you've got competition, your investors will think that you're not smart and experienced enough to get their money. Hunt harder for real or prospective competitors to show that you've done your homework. Tell them how your business will be better than your competition. Usually that means you will be better, cheaper or faster.
2. How are you going to make money? Tell your possible investors who is going to pay for your product or service and how much they are willing to pay. Is this going to be a one-time sale or will you be able to sell more to your customers? Can you sell them other, related products and services? They want to know that your business will make enough money to operate, pay them back and give them a good profit.
3. Describe your product or service in enough detail to convince your investors that your business opportunity is real. Be aware that you might have information that would help a direct competitor beat you and consider carefully who will read it. Know enough about your investors to be pretty sure that it is the kind of opportunity they'd be interested in before you ever tell them about your business opportunity.
4. Discuss the technology that underlies your business idea. How will you protect it? If you've got something really unique, you may have the only solution to a problem. That will require some explanation: Are you innovative enough to get patent protection for your product? If you enforce it, that will prevent competitors from duplicating your product. Is it a secret, that your customers will believe can't be duplicated, like the formula for Coca-Cola or the recipe for Krispy Kreme donuts? Do you intend to establish it as a recognized brand? Can you trademark it or service mark it? All of these things, classed as intellectual property, can be protected and help make your product or service recognizable from your competitors.
5. The most important factor in whether you will succeed and if you'll get investors is the quality of your management. There are a number of components that go into their decision to invest. Building a successful company requires vision, leadership, interpersonal skills and dogged persistence to meet goals. Even if the business is a good idea, they may not be convinced that you or other members of your team can execute the plan. You need to have key executives that investors believe will make the plan work. This can be tricky but not impossible if you are the only manager/employee/technologist/information manager/customer relationship manager and bookkeeper. Do you have some great advisors? Write them up and make them shine. Convince investors that you, and your team, will get the job done.
6. How much money do you need? You'll find that in your financials. What will it buy? Usually investments are meant to get you to specific milestones. Match your request for money, or your own bootstrapping, to what that money can buy for your business. What are you willing to give your investors to get that money? You will want to discuss in general terms. Are you looking for investors who will own part of the company with you? Or are you looking for investors to loan you money and get repaid from the company's earnings? You'll need to include a summary of your projected five-year income statement, profit and headcount to justify your capital requirements.
7. Exit Strategy: If your investors are loaning you money that you're going to repay them, they are interested in the terms of payment. Their exit will be when you give them that final check. If, however, your investors own part of the company, they'll want to know how they are going to make money from it. Either you will have to plan to repurchase their stock, sell the company or refinance it to buy them out. Usually, equity investors want to make their money back in 3-5 years and be ready to make another investment with the capital returned and the profits you've earned them.

Now, design a great coversheet that tells your potential investors how to find you. They want information on who you are, how to find you (address, phone #s, email, etc.). Be available to them! If you have a logo designed or another great graphic related to the business, use it! Give them a clean, compelling document that looks attractive and professional. We suggest getting the executive summaries spiral bound with a clear binder sheet in front. It costs a few bucks at Kinkos or other remote office operations but gives a good appearance that will help you gain the investor's confidence and attention.

Now relax. If you've followed our tutorials, you should have a business plan to be proud of and one that fairly represents what you are going to do with your business. Reward yourself because you have reached a significant milestone in your business. You are now ready to raise funds, hire employees and make your business plan into a business!

-Cynthia Nemeth-Johannes

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