Your Opportunity
So imagine, you are presenting to me your proposal to invest in your business. The first thing I need to appreciate upfront is
- what it is you want from me and
- what the commercial opportunity is
Too many proposals I see, or hear for that matter, start with NO introduction to what you are looking for and why it makes sense to seek my help – for whatever reason (cash, industry connections, whatever). In some ways, it is like a bit of an opt-in for the investor (or “opt-out” as the case may be). Be respectful of investors time, and allow for them to opt out by stating the amount of capital you are looking for and why you see there being a commercial opportunity here.
Here is a good example of what I am talking about:
“XYZ Pty Ltd (your company) is seeking $5M from sophisticated investors to fund the commercialisation phase of their ground breaking technology. This technology reduces the amount of petrol used by motor vehicles use by x%, reduces carbon emissions by x% and actually increases torque by x%. The company has undergone 5 years of development including market based testing, and is now ready to go to market.
With x million registered motor vehicles in Australia, and y million across the globe the company sees a significant opportunity to positively affect household and business budgets alike in terms of cost savings and at the same time significantly reduce carbon emissions globally.
Now I know:
- how much capital you are looking for and
- broadly what the opportunity is
So I would introduce your opportunity with this level of punchiness and you have my attention. In your pitch and executive summary this level of detail is actually fine. Clearly in your business plan there needs to be more detail behind the claims and the opportunity. Look out for the next ingredient: Statement of the Problem
If you need to fast track your business plan or proposal, or get a litmus test on where you are at with your pitch or strategy or need to be connected with investors, we would be delighted to chat through your requirements. Call us on 02 8003 3004 or ken@scotiamacleod.com.au
