How to Write a Successful Financing Focused Executive Summary

Perspective

Investors Wants

Questions to Ask

Equity Pursuit

Bank Financing

Executive Summary

Samples

Getting Started

1

Getting FinancedGetting FinancedGetting FinancedGetting Financed

Writing a Successful Financing-Focused Executive Summary

1. Investors/Lenders

2. Questions

3. Equity

4. Debt/Loans

5. Executive Summaries

Perspective

Investors Wants

Questions to Ask

Equity Pursuit

Bank Financing

Executive Summary

Samples

Getting Started

2

Financing PerspectiveFinancing Perspective Innovative Approach

Financing PerspectiveFinancing Perspective Innovative Approach View Your Business As

• A marketable asset• A source of long-term wealth• A creator of jobs• A source of investment income

– Yourself– Others who believe

Perspective

Investors Wants

Questions to Ask

Equity Pursuit

Bank Financing

Executive Summary

Samples

Getting Started

3

What Investors WantWhat Investors WantWhat Investors WantWhat Investors Want

• A strong return on investment– Ranges from 8% (friendly, debt) to

40%

• A clear pay-off date (exit strategy)– Typically, 3-7 years

• A strong management team• A base valuation of company• A plan to accomplish goals

Perspective

Investors Wants

Questions to Ask

Equity Pursuit

Bank Financing

Executive Summary

Samples

Getting Started

4

Ask These Questions Ask These Questions First!First!

Avoid limiting your optionsAvoid limiting your options

Ask These Questions Ask These Questions First!First!

Avoid limiting your optionsAvoid limiting your options1. How much money do I need?2. What is the money for?

1. Need working capital? Want to expand sales and marketing efforts?

2. Need funds for software development? Or to expand company across all areas.

3. What are your near, mid-range, and long term goals for the company?– Do you intend to sell the company soon? Do you

intend to grow through partnerships?

Asking the right questions 1st is key to deciding source and amount. Better questions = better decisions.

Perspective

Investors Wants

Questions to Ask

Equity Pursuit

Bank Financing

Executive Summary

Samples

Getting Started

5

Equity PursuitEquity PursuitEquity PursuitEquity Pursuit

• Investor profile sheet– Introduces company and piques interest

• Executive Summary– Provides more details to further interest

• Business Plan– Full details including financials and

projections after signing a conf. agmt & LOI

• Supporting material– All material requested after LOI or agmt.

Perspective

Investors Wants

Questions to Ask

Equity Pursuit

Bank Financing

Executive Summary

Samples

Getting Started

6

Bank FinancingBank FinancingWhat You Need for AccessWhat You Need for AccessBank FinancingBank Financing

What You Need for AccessWhat You Need for Access

• Abbreviated business plan /Executive Summary

• Pro-forma business financials (3 yrs)• Financial statements (2 yrs)

– Audited (best), reviewed (good), compiled

• Tax returns– Company

– Personal

• Aged receivables, aged payables• Explanation of any negative business items

Perspective

Investors Wants

Questions to Ask

Equity Pursuit

Bank Financing

Executive Summary

Samples

Getting Started

7

Equity FinancingEquity FinancingWhat You Need to FinalizeWhat You Need to FinalizeEquity FinancingEquity FinancingWhat You Need to FinalizeWhat You Need to Finalize

• Business plan• Pro-forma business financials (5 yrs)• Financial statements (3 yrs)

– Audited (best), reviewed (good), compiled

– Tax returns for company if no reviewed

• Contracts, agreements, other due diligence-requested items

• Explanation of any negative business or personal items

Perspective

Investors Wants

Questions to Ask

Equity Pursuit

Bank Financing

Executive Summary

Samples

Getting Started

8

Abbrev. Business Plan Abbrev. Business Plan Components -1

Abbrev. Business Plan Abbrev. Business Plan Components -1

• Company Overview / Business Description– Type, location, industry, sales

• Products/Services – Description– What company provides

• Market Overview / Opportunity– Industry and market background

Perspective

Investors Wants

Questions to Ask

Equity Pursuit

Bank Financing

Executive Summary

Samples

Getting Started

9

Abbrev. Business Plan Abbrev. Business Plan Components-2


• Competitive Advantages– What makes you stand out from your

competitors

• Strategy– What you will accomplish, when, & how

• Management– Management team bios, Advisory Board

Perspective

Investors Wants

Questions to Ask

Equity Pursuit

Bank Financing

Executive Summary

Samples

Getting Started

10



• Investment or Financing Considerations– Information pertinent to lenders or investors

• Summary of Financial Information / Financial Analysis– Snapshot of financials including customer

concentration

• Sources and Uses of Funds or Proposed Financing

Perspective

Investors Wants

Questions to Ask

Equity Pursuit

Bank Financing

Executive Summary

Samples

Getting Started

11

Additional Information:Solving the Capital

Equation: Financing Solutions for Small Businesses

Available on Amazon

Or get the ebook

Help! I Need Money for

My Business Now!!www.financeyourcompany.com

Getting StartedGetting StartedGetting StartedGetting Started

Perspective

Investors Wants

Questions to Ask

Equity Pursuit

Bank Financing

Executive Summary

Samples

Getting Started

12

Thank You!

Toca Family Business Services

Tiffany C. Wright

[email protected]

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Small Business Finance Forum: http://blog.smallbusinessgrowthcapital.com

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How to Write a Successful Financing Focused Executive Summary