Jim Talerico, Principal at Alternative Capital & Management Resources, Inc. joined us on this episode of Small Business Trends radio to offer tips on how to make your business more attractive to Angel investors to get the investment of capital you need.
As Jim points out, times of tight credit and slow markets are when investors may be turning to private investments for a higher return, instead of turning to the public markets.
You want to make sure your business is the one that the Angel investor invests in. And one crucial area to focus on to ensure your success is the area of presentation – a power presentation to be exact. Jim suggests following the 10, 20, 30 rule. No more than 10 slides, 20 minutes of presentation and a 30 point font.
Jim has outlined the following as key elements of your 10 slide presentation to a potential Angel investor:
- Define the market need — and your business model. It should illustrate the problem the idea solves and how to make money from it. This is where you capture the Angel’s attention.
- Highlight the management team — by introducing directors, key employees and advisors. Personalize what makes you unique in the market.
- Provide an overview of the industry — and the market. Include projected growth rates, the size of your target market, expected market penetrations, etc.
- Introduce product and service offerings — and validate their effectiveness, the market solution and the customers acceptance.
- Discuss strategic partners — and examine how they increase your competitive advantage.
- Summarize the competition –by discussing who the are, their strengths and weaknesses, opportunities within the market and barriers of entry to new competitors.
- Elaborate on your competitive advantage — by stating what makes you unique and why it’s sustainable.
- Discuss your sales — and marketing plan.
- Review financial expectations — by discussing profit margins and what your five year forecast is.
- Review the funding request — and supply the use of funds, the exit strategy, how we are valuating the owners and the business and what future rounds of investing required – then close strong.
This is just the tip of the iceberg. Jim covered these points and many, many others in a session jam-packed with advice and useful information.
Learn more about how you can attract an Angel investor to your business by listening to Jim’s full interview by clicking the red and yellow player below.
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