02: Drawing up a business plan for potential funders - Page 2

Development Plan
• Provide evidence of a realistic and methodical approach to achieving your technical goals
• Show how the technology development plan is synchronised with the sales effort
• 1 page Gantt type overview
• Identify milestones or key decision points

Intellectual Property (if applicable) – what do you own?
• Patents?
• Know how?
• Barriers to entry – do you know of other intellectual property which might hinder your entry into a particular market?

Financials
• When will first sales be made?
• Back-up on cost data to support requested level of investment
• Sensible matching of costs and revenues

Some Do’s and Don’t’s

DO
• Your homework before approaching a funder
• Get an introduction rather than making a cold call
• Be aware that investors will be making judgements throughout their interactions with you
• Expect to provide references on yourself and your customers
• Admit weakness
• Identify gaps in your planning
• Talk about risks and the possibility of failure
• Pester your investor – be proactive
• Say no to his/her requests if they’re not sensible

DON’T
• Make claims you can’t substantiate
• Make your plan or presentation too long
• Use management speak or technical jargon
• Say there’s no competition
• Delay in providing follow-up information

Two final thoughts
• Regardless of how you perform on the day, if the underlying business proposition is sound, you will succeed
• Think of your investor as pitching to you rather than the other way round

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