Posts Tagged contractual relationship
Key Players need to be stated in the Executive Summary
Posted by Steve in Leadership, Pitch on July 8, 2009
In this series of installments I am discussing the executive summary and how to make it stand out. The executive summary should present the compelling reason for the investor to buy into the company.
Alternative title: Credibility is more important than secrecy.
For good reasons, entrepreneurs should keep their key players whether in a contractual relationship or in negotiations secret. However, when presenting to investors, or other key players, they need to weigh secrecy versus credibility.
Have you ever heard someone say, “Very important people are in the know”? Do they ever really state those “very important” people? Not really. The sad reality is that they probably do not have the connections. Investors have to be wary of this. Credibility should be more important than secrecy.
If you plan involves key players, state those key players. If it is in negotiations, state it is in negotiations. Include in the body of the plan, the backup if things fail; but state specifics.
Remember, investors invest in people. They need to see that these people are credible.
Talk about the marketing in the Executive Summary
In this series of installments I am discussing the executive summary and how to make it stand out. The executive summary should present the compelling reason for the investor to buy into the company.
Yesterday, I wrote that when you ask for money, you should state how it will be used. I discussed how the products and services will be made and sold. Marketing makes that initial connection with the buyer and builds that relationship. Often, the money is used towards marketing; however, simply stating that may not be enough.
On the other hand, going into depth with a marketing plan is going to be too much for an executive summary. Remember, the point of the executive summary is to demonstrate that this company and management team will be successful. Therefore, what about the marketing of this product will make it successful enough to entice an investor to want to buy in?
Approach the question by addressing five basic aspects of the marketing plan:
- How will this be promoted? (Remember, who is the audience for the product/service?)
- How will this be sold? (Could be a very different channel than the promotion!)
- Is there a specific price or range of prices, not already discussed that will be a major factor?
- Are you in a contractual relationship with a key player that will help you market (that is different from yesterday’s answer)?
- Are you in negotiations with a key player that will help you market (that is different from yesterday’s answer)?
From these five questions, you can come up with the key elements that will distinguish this marketing, and make it successful. The critical element is that marketing must be addressed, whether or not the funds from the investors will be used for it.