investors being an entrepreneur is hard having supportive and caring investors
having supportive and caring investors
having supportive and caring investors helps fred wilson how do you write a
helps fred wilson how do you write a
helps fred wilson how do you write a business plan for investors it doesn’t
business plan for investors it doesn’t
business plan for investors it doesn’t matter if you have a business degree it
matter if you have a business degree it
matter if you have a business degree it doesn’t matter if you graduated from
doesn’t matter if you graduated from
doesn’t matter if you graduated from university college high school or the
university college high school or the
university college high school or the school of hard knocks it doesn’t matter
school of hard knocks it doesn’t matter
school of hard knocks it doesn’t matter what your last name is what your skin
what your last name is what your skin
what your last name is what your skin color is how old you are or whether you
color is how old you are or whether you
color is how old you are or whether you wear pants or a skirt I used to be a
wear pants or a skirt I used to be a
wear pants or a skirt I used to be a venture capitalist a VC people came to
venture capitalist a VC people came to
venture capitalist a VC people came to me to raise big money for their
me to raise big money for their
me to raise big money for their businesses I’m talking 500,000 to 15
businesses I’m talking 500,000 to 15
businesses I’m talking 500,000 to 15 million dollars kind of money and today
million dollars kind of money and today
million dollars kind of money and today I’m going to share with you the three
I’m going to share with you the three
I’m going to share with you the three most important things I look for before
most important things I look for before
most important things I look for before inviting someone in to see me
inviting someone in to see me
inviting someone in to see me ninety-nine point nine percent of
ninety-nine point nine percent of
ninety-nine point nine percent of business plans got rejected only the
business plans got rejected only the
business plans got rejected only the point one percent of entrepreneurs who
point one percent of entrepreneurs who
point one percent of entrepreneurs who followed these three simple rules got
followed these three simple rules got
followed these three simple rules got invited to a meeting with us so if
invited to a meeting with us so if
invited to a meeting with us so if you’re thinking about raising capital or
you’re thinking about raising capital or
you’re thinking about raising capital or just one an education as to how the
just one an education as to how the
just one an education as to how the process works you’ll want to pay
process works you’ll want to pay
process works you’ll want to pay attention to this one number one
attention to this one number one
attention to this one number one executive summary the executive summary
executive summary the executive summary
executive summary the executive summary is the first thing an investor venture
is the first thing an investor venture
is the first thing an investor venture capitalist angel banker and so on looks
capitalist angel banker and so on looks
capitalist angel banker and so on looks at it’s 13 pages at the beginning of
at it’s 13 pages at the beginning of
at it’s 13 pages at the beginning of your business plan that summarizes the
your business plan that summarizes the
your business plan that summarizes the whole opportunity right at last make it
whole opportunity right at last make it
whole opportunity right at last make it important keep it simple there was an
important keep it simple there was an
important keep it simple there was an expression in the VC world that an
expression in the VC world that an
expression in the VC world that an executive summary had to pass the
executive summary had to pass the
executive summary had to pass the grandmother test meaning that it had to
grandmother test meaning that it had to
grandmother test meaning that it had to be written in plain English so that your
be written in plain English so that your
be written in plain English so that your grandmother could understand it most
grandmother could understand it most
grandmother could understand it most business plans are filled with so much
business plans are filled with so much
business plans are filled with so much jargon and technical terms that
jargon and technical terms that
jargon and technical terms that investors get lost remember investors
investors get lost remember investors
investors get lost remember investors are generalists not specialists they
are generalists not specialists they
are generalists not specialists they don’t know your business like you do
don’t know your business like you do
don’t know your business like you do it’s your job to make it easy for them
it’s your job to make it easy for them
it’s your job to make it easy for them to understand the opportunity if they
to understand the opportunity if they
to understand the opportunity if they can’t understand how they’re going to
can’t understand how they’re going to
can’t understand how they’re going to make money from your executive summary
make money from your executive summary
make money from your executive summary then your entire business plan goes to
then your entire business plan goes to
then your entire business plan goes to the trash can and that’s your fault keep
the trash can and that’s your fault keep
the trash can and that’s your fault keep it simple number two management team
it simple number two management team
it simple number two management team assuming they like your executive
assuming they like your executive
assuming they like your executive summary the next thing to look at is
summary the next thing to look at is
summary the next thing to look at is your management team they want to see
your management team they want to see
your management team they want to see what kind of experience you have have
what kind of experience you have have
what kind of experience you have have you done this before you
you done this before you
you done this before you any startup experience are you the right
any startup experience are you the right
any startup experience are you the right person to actually execute this idea of
person to actually execute this idea of
person to actually execute this idea of yours one of the biggest problems with
yours one of the biggest problems with
yours one of the biggest problems with most startup companies is an incomplete
most startup companies is an incomplete
most startup companies is an incomplete management team for example you’ve got a
management team for example you’ve got a
management team for example you’ve got a founder who can’t sell and doesn’t have
founder who can’t sell and doesn’t have
founder who can’t sell and doesn’t have a sales person we’ve got a tech company
a sales person we’ve got a tech company
a sales person we’ve got a tech company without a CTO or everybody involved is
without a CTO or everybody involved is
without a CTO or everybody involved is young and this is the first thing
young and this is the first thing
young and this is the first thing they’re trying all of those things
they’re trying all of those things
they’re trying all of those things scream risk for an investor to give
scream risk for an investor to give
scream risk for an investor to give yourself the best chance at a yes find
yourself the best chance at a yes find
yourself the best chance at a yes find people to complement your team it could
people to complement your team it could
people to complement your team it could be someone who’s a partner a full-time
be someone who’s a partner a full-time
be someone who’s a partner a full-time or part-time employee or even a member
or part-time employee or even a member
or part-time employee or even a member on your board of advisers pro tip create
on your board of advisers pro tip create
on your board of advisers pro tip create a board of advisors get respected people
a board of advisors get respected people
a board of advisors get respected people to lend their name to your company so it
to lend their name to your company so it
to lend their name to your company so it doesn’t look like it’s just you for
doesn’t look like it’s just you for
doesn’t look like it’s just you for example if nobody who really understands
example if nobody who really understands
example if nobody who really understands finances is on your team that’s going to
finances is on your team that’s going to
finances is on your team that’s going to worry an investor get your account to
worry an investor get your account to
worry an investor get your account to join your board of advisers to add
join your board of advisers to add
join your board of advisers to add credibility and make investors feel more
credibility and make investors feel more
credibility and make investors feel more comfortable number three financials
comfortable number three financials
comfortable number three financials investors want to know that they’re
investors want to know that they’re
investors want to know that they’re going to get a return on their
going to get a return on their
going to get a return on their investment banks for example want to
investment banks for example want to
investment banks for example want to know that you can pay them back and
know that you can pay them back and
know that you can pay them back and they’ll likely want your house is
they’ll likely want your house is
they’ll likely want your house is collateral angel or VC investors will
collateral angel or VC investors will
collateral angel or VC investors will want to see that your business can give
want to see that your business can give
want to see that your business can give them an average annual return of thirty
them an average annual return of thirty
them an average annual return of thirty percent on their investment they want to
percent on their investment they want to
percent on their investment they want to see that you can grow quickly and that
see that you can grow quickly and that
see that you can grow quickly and that someone is likely to buy you out they
someone is likely to buy you out they
someone is likely to buy you out they want to be in and out of your business
want to be in and out of your business
want to be in and out of your business in six to eight years can they get that
in six to eight years can they get that
in six to eight years can they get that kind of return through your financials
kind of return through your financials
kind of return through your financials if they can’t they’re out also make sure
if they can’t they’re out also make sure
if they can’t they’re out also make sure that you understand every number on your
that you understand every number on your
that you understand every number on your financial projections they’re going to
financial projections they’re going to
financial projections they’re going to test your assumptions and if you stumble
test your assumptions and if you stumble
test your assumptions and if you stumble you’re going to lose them the next step
you’re going to lose them the next step
you’re going to lose them the next step you’ll need to send an entire business
you’ll need to send an entire business
you’ll need to send an entire business planning but those are the three main
planning but those are the three main
planning but those are the three main sections investors will look at if you
sections investors will look at if you
sections investors will look at if you pass a test on those three then the
pass a test on those three then the
pass a test on those three then the investor will likely read the rest of
investor will likely read the rest of
investor will likely read the rest of the plan but will be thinking in the
the plan but will be thinking in the
the plan but will be thinking in the back of his or her head I’d like to meet
back of his or her head I’d like to meet
back of his or her head I’d like to meet this entrepreneur and that’s what you
this entrepreneur and that’s what you
this entrepreneur and that’s what you want that first meeting where you can
want that first meeting where you can
want that first meeting where you can show your passion and get them excited
show your passion and get them excited
show your passion and get them excited about the opportunity with you it’s not
about the opportunity with you it’s not
about the opportunity with you it’s not about having a business degree you don’t
about having a business degree you don’t
about having a business degree you don’t need it to write a business plan
need it to write a business plan
need it to write a business plan your plan just has to make sense make it
your plan just has to make sense make it
your plan just has to make sense make it easy for investors to understand your
easy for investors to understand your
easy for investors to understand your business and you’re that much closer to
business and you’re that much closer to
business and you’re that much closer to getting a yes from them
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