|
Capital sources: Presenting yourself and your company
Your ability to pay back a loan makes you attractive
to other lenders. The future value of the business is the first
thing that investors will focus on, as it determines cash flow.
So in order to make an effective presentation, you'll have to answer
the following:
- What is the company, and what are its strengths?
- How has it performed?
- Where is it going and how will it get there?
- What will its success mean for investors?
- What repayment terms do you prefer?
To approach and answer these questions in a professional
presentation you'll need a loan proposal, a sort of mini-business
plan tailored to each specific investor. About 10 pages long, the
loan proposal should include a brief business summary, a history
of the company officers and the business (include any other financing),
and an explanation of what you need and why. Also include your credit
and business references, and the financials: a balance sheet, earnings
history and future projections. Explain your repayment preferences,
described the collateral and equity options that are available,
and provide any other relevant information.
Presentations can be made in a formal boardroom environment,
or over coffee. Regardless, you must provide professional-looking
documents. Visual support can help, such as slides or handouts.
Always follow up a presentation by contacting
the potential investor a second time.
|
