Before bringing on investors, you need to review your execution plan. This includes:
- business strategic plan;
- business structure – does it facilitate investment?
- project activity – milestones, budget and deliverables;
- financial model – sales cycles and pipeline, sustainable margins and positive cash flow;
- intellectual property rights – what are they and how are they or will they be protected? and
- risk analysis, such as mitigation strategies.
There’s 10 elements all investors want:
- People – passion, commitment, experience, synergy.
- Value proposition – solves a problem.
- Intellectual assets – protectable, compelling, differentiated skill sets.
- Market and customers – competitive awareness, who, where, size, entry barriers.
- Structure for investment – company shares, share classes and voting rights, units in unit trust, future dissolution of ownership, convertible or SAFE notes.
- Growth – rapid versus staged growth, clear strategy, global vision.
- Financial model – sales cycle and pipeline, sustainable margins, positive cash flow path, early-stage investment eligibility.
- Strategic fit – fits with investor’s business.
- Exit for financial investors – value creation, clear path for ROI, when, how.
- Data – verifiable and independent evidence, technical support.
Katrina Brennan, Principal, SRJ Walker Wayland Business Growth Advisors, Accountants and Auditors, 1 Allen Street, Moffat Beach, 5301 9957, srjww.com.au
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