Presenting Your Plan: What to Know Before Meeting with Potential Lenders and Investors
You know you need to raise funds to bring your dream of owning your own business to life. You’ve done the research and have put together a formal business plan. Congratulations! You’re ready to meet with potential investors.
So, before you ask someone for a huge chunk of money to back your business idea, ask yourself this question: exactly how much of my own money have I contributed so far? If your answer is “none”, consider these investments as a starting point before meeting with your first potential lender or investor:
Invest in a graphic designer
It seems backwards to be spending money before you ask for money. But hiring a graphic designer to finalize your logo concept and branding packet will prove to investors your ability to plan a sustainable business.
Work with a professional designer to create a logo that will translate to different markets and demographics as your business expands. The designer should provide final logo files for web (RGB) and print (CMYK), as well as acceptable font and color palettes. Stick to these guidelines in your business plan design. Pricing for a logo and branding packet typically falls in the $500-2000 range. If any designer quotes you less than this, walk away; it’s a red flag they are inexperienced and you probably won’t get quality results.
Another reason to partner with a graphic designer from the start: you’ll need a website, business cards, brochures, and much more marketing collateral once you are financed and growing. If you’re asking a lender to invest thousands or even millions of dollars in your business, hiring a graphic designer now is likely to pay off in the long run.
Invest in a copywriter
Experts agree that a strong “elevator pitch” is crucial when meeting with potential lenders. If you can’t sell someone on your business idea in just a few short minutes, investors will move on to the next person who can.
Once you’ve perfected your summarized pitch, put it down on paper. If writing isn’t your strong point, consider hiring a freelance copy editor. If your summary is full of typos and run-on sentences, investors will assume you are sloppy with business operations as well.
Lenders and investors are short on time. If the opportunity arises to leave your plan with them, they’ll already have a professional, summarized reference sheet for quick review or forwarding. Be prepared to distribute this well-polished summary in your meeting as a cover sheet to your full, detailed business plan.
Invest in a background check
Coming to the table with a personal background check will provide the lender with assurances regarding your background and character. Quality personal background check services are available online from companies for under $30.
Invest in the basics
Without going overboard, buy your basic office supply needs and important start-up items like your business license (priced per state, starting at approx. $100/year).
Lenders love backing business owners who are skilled at saving money to increase profits. Score bonus points during your meeting by illustrating- with infographics- how you’ve acquired your basic office supplies and equipment at discount, or through trade via industry connections.
Most funding sources won’t even consider making an investment these days without seeing a well-written business plan in place. Inevitably, the question will arise in your first interview: “How much money have you personally put into your business?” A truly confident business owner will have a hard number (more than zero!) ready to fire back.
