The Investor Presentation
The business presentation is the formal presentation of your business to potential investors. It includes the business plan, the presentation materials, and the verbal pitch delivered to the investor. You may here the overall presentation referred to as “the business pitch”. In reality the business pitch is just a part or portion of the presentation. While the business plan lays out the business and its intentions, the business pitch and accompanying material translate of the plan into an easily communicated message.
The primary purpose of the business presentation is to attract interest in your business from potential lenders. Entrepreneurs seeking capital from investors will generally follow the process of contacting the investors, providing a complete business plan, and then waiting for an invitation to pitch the plan to the investor. If you are invited to present your business plan, your business pitch is the method by which you sell your business plan to the investor. Just like a situation where you apply for a job, you first submit your resume. If you are invited for an interview, you practice your interview techniques in order to sell yourself to the employer.
Investors Require Presentations
The above scenario is a generalized model for when the business presentation is necessary and relevant. In today’s entrepreneurial environment, the business presentation has more relevance than ever. The entrepreneur may use the business pitch to test the business concept or try to attract investors at a business plan competition. These competitions are a great place to find investors, potentially win money from the competition, or to try and recruit talented individuals to join the business team.
Useful for the Entrepreneur(s)
The business presentation also helps the entrepreneur to develop their elevator pitch. The elevator pitch is the two-minute summation of your business idea that you would provide to someone interested in your business. It is called the elevator pitch because it should be concise, yet thorough, summation of your business that is short enough to happen during an elevator ride from the floor to the penthouse. Investors today are inundated with business plans and entrepreneurs seeking investment. It is not easy to grab the attention of these investors with a large, bulky business plan. Taking advantage of the ability to concisely deliver your business concept, product/service, and value proposition in an elevator pitch can be the key to being invited for a more formal and developed investor pitch.
In summary, the business pitch is extremely relevant and an important part of developing a business plan. Below we provide guidance in preparing the entire investor presentation.