POWERPOINT PRESENTATIONS FOR INVESTORS

RANDY HARMON
Prepared for the Venture Association of New Jerseys Maximum Impact Workshop April 20, 2004 This presentation was delivered to empower entrepreneurs to prepare presentations to prospective investors. The slides can be used as a template by entrepreneurs in preparing their own presentation. In addition to this free template, those who purchase our preparation service will receive an instructional article to guide them in preparing their draft presentation

POWERPOINT SLIDES ARE LIKE BUILDING BLOCKS

-You build the investors understanding of the
BUSINESS OPPORTUNITY block by block -The blocks should be arranged so as to tell a COMPELLING story -The presentation must flow smoothly from slide to slide -There is no one correct format -Make sure you have a near complete set before you begin pitching

WHAT BUSINESS ARE YOU IN?

-What the company does -What industry you are in -Customers and markets
MISSION STATEMENT -What the company aspires to become

WHERES THE BEEF? WHATS COMPELLING?

-What unmet need does this fill? -Why is this important? -Why will customers care? -Why should investors care?

MILESTONES
-Significant achievements to date -You want to be able to demonstrate that a momentum is building

WHAT THE COMPANY IS LOOKING FOR

-USE OF FUNDS -Can they be staged? -Tie stages to milestones

COMPANY BACKGROUND
-Founding -Structure -Stage of development -Compelling points regarding origins of company

MANAGEMENT TEAM
-The less complete your team, the more difficult it will be to raise financing -Relevant, industry experience -A sales and marketing professional is usually a must -Identify business and scientific advisory boards and marquee advisors

MARKET
-Identify and describe -Trends and growth -Demonstrate understanding
Note: Investors expect you to understand your targeted markets and customers at least as well as anyone else

NICHES/SEGMENTS SERVED
-Focus -Rifle versus shotgun

PRODUCT AND ATTRIBUTES

-Dont overemphasize the technology at the expense of the business opportunity -No more than two or three slides max -Laymans language -Status of intellectual property

MARKET VALIDATION
-Sales -Beta testing -Business Partnerships -Testimonies from prospective customers -Market research

COMPETITORS
-EVERY PRODUCT HAS COMPETITION -List individually or by category

COMPETITIVE MATRIX

-Matrixes allow the presentation of lots of information in a useable format -X Axis-Critical evaluation criteria -Y Axis-Key competitors or groups

COMPETITIVE MATRIX
Criteria 1 Price Competitor 1 Competitor 2 Competitor 3 You Inc. $ 28,000 $ 37,000 $ 31,000 $ 33,000 Criteria 2 Speed 8 units/hr 10 units/hr 10 units/hr 12 units/hr Criteria 3 Useful life 7 years 10 years 8 years 10 years

COMPETITIVE ADVANTAGE
-How you differentiate yourself from your competitors in a manner that is compelling to your prospective customers -Unfair advantage -Sustainability of advantage -Barriers to entry

SALES AND DISTRIBUTION

-How will you open the doors to your customers and get your product to them? -Should be well thought out and demonstrate your knowledge of the industry

FINANCIAL MODEL/ HOW YOU WILL MAKE MONEY

-Revenue streams -Margins higher than industry norms -Hockey stick growth curve

FINANCIAL PROJECTIONS

-Revenue and EBIT for 3 years -Identify key financial assumptions -Investors want bottom up sales projections beginning with your first sale

EXIT STRATEGY

-How are we going to cash in and get rich?

CLOSING SUMMARY
-WHY YOU KNOW THAT YOU ARE GOING TO BE SUCCESSFUL -Repetition of most compelling points

ARE YOU READY?

ENTREPRENEURS APPROACH INVESTORS TOO EARLY -Unmet need -Milestones -Sufficiently large market, niches -Management team -Marketing/sales plan -Market validation -Competitive advantage/barriers to entry -Bottom up financial projections