Posts Tagged time period

Address the Executive Summary to the Audience: The Investor

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.

The primary audience of the executive summary is the potential investors.  Their primary concern is what do you want, and how do I benefit?

First consider how you address the question: “What do you want?”  Essentially, you want money from the investors.   More importantly, they want to know how much, when, and how does this money IN translate into money OUT.  This can be broken down into several key issues:

  1. How much money will you need from the investor? 
  2. Over what time period will you use this money? 
  3. How many months from the time you get this money, or part of this money, until you start making money?
  4. When do you expect to start making money?
  5. What are the total revenues in the first year, first three years, and expected lifetime (and how long)?  If you are using NPV calculations, what is your cost of capital?
  6. Where is this revenue coming from?
  7. What other revenue sources could there be, that you are not including in the dollar value?

Although you can also get guidance, key barriers dropped, potential customers, key members of management, and myriad of other things.  What makes an investor the investor is their infusion of money.

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