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The Three Questions 1. What do you have? Your opening paragraph should answer this question. For example: Our company manufactures pianos in Russia. Our last year's gross income was US$672,000 with a pretax profit of US$123,400. We own real estate upon which our plant is located. 2. What do you want? The second paragraph should tell investors what you are seeking. For example: Our company has opportunity to buy a competitor in Ukraine and to acquire an organ manufacturer and their manufacturing plant in St. Petersburg. The two acquisitions would increase our annual revenues by US$900,000 and St. Petersburg commercial real estate is valued at US$325,000. We need US$1 million dollars to complete both acquisitions. 3. What are you willing to give up to get what you want? This should be third paragraph. For example: The resulting company will have gross revenues of US$1,572,000 with an after tax profit of $311,000 and fixed assets (real estate) valued at $735,000. For US$1 million investment, we are willing to give investment group half equity in resulting manufacturing firm. This means investor is being offered about a 15% Return on Investment with a risk level of about 6%. In essence offer is a good investment for right investor.
Credibility To be taken seriously, your company must be credible. This is particularly true for startup companies. For example: Our management team has forty-five years combined experience in our industry works, if you prove it in your business plan. If you cite advanced degrees, include date they were received and university that issued degree. For example: saying that company's CEO has a PhD is meaningless. However, saying that CEO received his PhD in biophysics from Univ. of Michigan in 1989 is credible. Why? It's because investor can easily verify your claim. Don't make claims that can't be verified.
Avoid cashflow projections. They are never true and will impair your credibility. Only someone living in a cave or working in medical profession would rely upon them. Be specific and avoid general statements.
If you select your prospects carefully and follow these guidelines, you will have a far better chance to have your business plan read and your company funded.
He has been the Managing Director of Beowulf Investments [http://home.earthlink.net/~beowulfinvestments/] since 1981 and is the Executive Director of the Global Village Investment Club [http://home.earthlink.net/~beowulfinvestments/globalvillageinvestmentclubwelcome/]