We are in the last leg of our journey of writing convincing business plans for investors. Previously, we have seen what the investors are expecting and what the contents of the business plan need to be. However, that is not the end of it. We need to see what documents we will need at hand too.
Even if investors never want a comprehensive business plan, your planning approach should result in a few important documents that they will want to review. You will need to keep the following documents at hand while preparing an investment pitch.
The Cover Letter
- Most fundraising outreach these days is conducted via email, so you’ll need a brief cover letter that piques investor interest.
- In a few sentences, your cover letter should outline the issue you’re attempting to address for your intended audience.
- Great cover letters can occasionally be written in the style of a “story” that engages readers by providing a concrete, realistic example of the issues your consumers experience and how our product or service can help.
- Not all of your business should be included in the cover letter. It’s only to attract an investor’s attention and set up a meeting so you can pitch your company in more detail. Keep your cover letter crisp, interesting, and direct.
The investor deck
- If you get an investor meeting, you’ll almost certainly need a pitch deck to present your idea in more detail and showcase your business idea. Your pitch deck will cover the problem you’re solving, your solution, your target market, and key market trends.
- A pitch deck, which is sometimes referred to as a slide deck or start-up deck, is a presentation that offers a brief yet thorough summary of your company.
- It should outline the main ideas of your company strategy, your offerings in terms of goods and services, high-level financial estimates, and capital requirements.
- Your pitch deck will largely be utilized as a tool to communicate the story of your company, but it should also function well on its own as a visual document.
- A meeting might not be scheduled right away.
- A strong executive summary or lean business strategy can come in handy if your cover letter prompts a request for more information.
- While still brief, this document contains more information about your company in a few pages than your cover letter does.
- Unavoidably, investors will ask to see your financial projections.
- You will require a balance sheet, profit and loss statement, budget for expenses, cash flow prediction, and sales forecast.
- If you have historical data, you should prepare to share it together with any other important business indicators. Investors will always probe deeply into the workings of your company, so be ready to outline every aspect of how your company will function financially.
There is a good chance that you might not even have to show investors these documents or a business plan. However, it is extremely crucial for yourself and the business as it is going to be the best tool to prepare you for what comes next.
The entire process may seem a bit overwhelming and time-consuming. But the good news is you can partner with experts who can work with you to provide a business plan customized to your business. You can also connect with us at Turnkey Tech Solutions to get started with a business plan.