Presenting Your Business in a Couple of Minutes

Speed round presentation

Presenting you business quicklyYou only have a few moments to grab their

attention.You need to get right to the point and you

need to present your ideas in a clear and concise way.Write out your presentationPractice it in front of othersRefine, Refine, Refine

This presentation will have 4 parts!

Presentation SummaryIntroduction – seize their attention with your

sizzle.Business Concept – Shows this is a real

business with real customers.Operations – Show how your plan works

operationally.Finance – Show that you will make money

and that investors will receive a return.

IntroductionIn the next few (5) minutes {Tell me – the listener -how

long do you want my attention}

I am going to tell you about a great new way to ___, {what I will learn – Use a sentence that will get my attention!}

and invite you to participate in this opportunity by __ {what do you want me to do—invest, partner, promote, etc.}

Remember you must believe in this for me to believe. Let authentic (not fake) passion show. Make eye contact, have energy. Use plain language – impress me with the CLARITY of your ideas and not your big words.

Sharing the Business ConceptQuestions You will answer in this section:What are you selling? {tell me about your product or

service}Who are you selling it to? {tell me about your target

customer}Why is it needed? {part of this is why the need has not been

met}How you are selling it? { tell me how you are going to reach

the Customer? – What is your message to the customer?}Why will they buy it from you and not others (competitors)?In each of these give me the right amount of detail you only

have (5) minutes so get straight to the important information.

Sharing the Operations PlanQuestions You will answer in this section:How will you make it work? {tell me how you will overcome

obstacles that others could not}How will you meet this need in a way that creates added value for

your customer? {the idea here is how are your operations supporting sales, value for the customer and competitive advantage?}

How will you get started? {tell me the steps required – if you have started tell me what you did, but only the important information}

Tell me why this business is a fit for you and your abilities, and tell me about your team {if important to value added}.

Tell me about the systems you have or will develop {again you are focusing on those that will add value or give competitive advantage.}

In each of these give me the right amount of detail – Clear ideas not fluff!

Sharing the Financial PlanQuestions You will answer in this section: Will you have enough sales? {quickly tell me how you estimated

sales – it must make sense!} Do you have strong margins {tell me what your margins are going

to be – are they realistic? And why?} How will you keep Fixed Costs Low? {are your fixed costs low &

what is your strategy to keep them as low as possible?} How much capital will you need, and will you have enough cash to

make this business profitable?{You will probably provide a printout of your summary and working cap calculation along with your presentation}

What is the benefit to investors? What kind of involvement are you seeking from them? {Do you want their investment? How? How and when do they get paid?}.

Other information – What will your salary be? Other important information. {In each of these give me the right amount of detail – Clear ideas not fluff!

Support: Everything Needs Evidence!How can you prove the demand for your

product.How can you demonstrate that you have

competitive advantage. You say you and your team are competent; how

can you prove it?You say this will make money – why?You say you can purchase inventory or raw

materials at a certain price. Do you have supporting documentation. Quotes from suppliers, etc.

Other Documentation You Should have. Your business registration certificate. Your organizing

documents; Bylaws or Operating Agreement.  Your TIN etc.

Recent Financials; Income Statement, Balance Sheet, Cash Flow.

Financial Summary Sheet; Capital structure, cash on hand, 12 month sales record, unit economics, simplified operating costs, monthly operating margin (EBITDA).  

Capitalization Needs Summary; Total Capital You are Seeking, Use of Capital Summary, PreMoney Valuation, Justification, Offering/Deal Summary.

Financial Summary SheetCapital structure; where you got your capital from and

how much is debt and how much is equity in percentage terms.

Cash on hand; Bank balances12 month sales record; Your unit sales by month or by

quarter for the last year. Unit economics, first you need to know your basic

sales unit, direct cost per unit, sales price per unit and unit margin.

Simplified operating costs; list the 4-6 operating expenses that make up 80-90% of your operating expenses and put the rest under the line item “other.”

Monthly operating margin (EBITDA); this is from your income statement and is the margin after operating expenses and not including interest expense, taxes, depreciation, or amortization.

Capitalization Needs SummaryTotal new capital you are seekingUse of capital summaryPre-Money Valuation (for equity).Justification, offering/deal summary; exactly

what you are seeking and what the investor will receive and why you believe this is a valid offer.

Pre Money Valuation (for equity)If I want to sell 25% of my company to

someone for 1M. Then I am saying that the other 75% is worth 3M.

To calculate pre-money valuation you must first calculate post-money valuation (aka valuation after investment).

Post Money Valuation = Amount of new investment divided by the percentage company being offered. So 1M/.25=4M.

For pre-money valuation simply deduct the new money from the post money valuation. 4M-1M=3M.

Capitalization Needs SummaryTotal Capital You are SeekingUse of Capital SummaryPreMoney Valuation, pre money = new

investment * inverse of % of company purchased.

Justification, Offering/Deal Summary.