Writing a Successful Financing-Focused Executive Summary

Getting Financed:

1 Getting Financed Writing a Successful Financing-Focused Executive Summary 1. Investors/Lenders 2. Questions 3. Equity 4. Debt/Loans 5. Executive Summaries

Financing Perspective Innovative Approach :

2 Financing Perspective Innovative Approach View Your Business As A marketable asset A source of long-term wealth A creator of jobs A source of investment income Yourself Others who believe

What Investors Want:

3 What Investors Want A strong return on investment Ranges from 8% (friendly, debt) to 40% A clear pay-off date (exit strategy) Typically, 3-7 years A strong management team A base valuation of company A plan to accomplish goals

Ask These Questions First! Avoid limiting your options:

4 Ask These Questions First! Avoid limiting your options How much money do I need? What is the money for? Need working capital? Want to expand sales and marketing efforts? Need funds for software development? Or to expand company across all areas. What are your near, mid-range, and long term goals for the company? Do you intend to sell the company soon? Do you intend to grow through partnerships? Asking the right questions 1 st is key to deciding source and amount. Better questions = better decisions.

Equity Pursuit:

5 Equity Pursuit Investor profile she et Introduces company and piques interest Executive Summary Provides more details to further interest Business Plan Full details including financials and projections after signing a conf. agmt & LOI Supporting material All material requested after LOI or agmt.

Bank Financing What You Need for Access:

6 Bank Financing What You Need for Access Abbreviated business plan /Executive Summary Pro-forma business financials (3 yrs) Financial statements (2 yrs) Audited (best), reviewed (good), compiled Tax returns Company Personal Aged receivables, aged payables Explanation of any negative business items

Equity Financing What You Need to Finalize:

7 Equity Financing What You Need to Finalize Business plan Pro-forma business financials (5 yrs) Financial statements (3 yrs) Audited (best), reviewed (good), compiled Tax returns for company if no reviewed Contracts, agreements, other due diligence-requested items Explanation of any negative business or personal items

Abbrev. Business Plan Components -1 :

8 Abbrev. Business Plan Components -1 Company Overview / Business Description Type, location, industry, sales Products/Services – Description What company provides Market Overview / Opportunity Industry and market background

Abbrev. Business Plan Components-2:

9 Abbrev. Business Plan Components-2 Competitive Advantages What makes you stand out from your competitors Strategy What you will accomplish, when, & how Management Management team bios, Advisory Board

Abbrev. Business Plan Components-3:

10 Abbrev. Business Plan Components-3 Investment or Financing Considerations Information pertinent to lenders or investors Summary of Financial Information / Financial Analysis Snapshot of financials including customer concentration Sources and Uses of Funds or Proposed Financing

Getting Started:

11 Additional Information: Solving the Capital Equation: Financing Solutions for Small Businesses Available on Amazon Or get the ebook Help! I Need Money for My Business Now!! www.financeyourcompany.com Getting Started

Contact Us:

12 Thank You! Toca Family Business Services Tiffany C. Wright twright@tocafamilyservices.com Follow my blog, Small Business Finance Forum: http://blog.smallbusinessgrowthcapital.com Contact Us