We want to gauge the potential of every business quickly so that we can make sensible, prompt investment decisions that are respectful of the time of founders.
Your business plan needs to provide enough information to demonstrate the strength and appeal of your team, market and technology. We need to be able to understand your business model and detailed financial projections, as well as your capital requirements, how you will use the investment funds and the milestones you will reach with this investment. Use specific information on your customers, competition, market and your sustainable competitive advantage to establish the credibility of your ambitions.
Communicate all of this effectively and concisely, include all the critical details knowing there is plenty of opportunity for elaboration later in the process.
We typically ask the following questions of every founder so answering them in your submission is a good idea.
1. What is the business or life problem that you solve?
2. How do you solve this problem (i.e. what is the technical nature of your solution)?
3. Who has this problem (i.e. who are the potential customers)?
4. What is it worth financially to a typical customer if they could solve this problem?
5. How many of these prospective customers are there in Australia? The world?
6. What is the current annual market expenditure to solve these problems in Australia? The world?
7. What alternative solutions are there to these prospects’ problems?
8. What is/are your compelling attribute(s) that will ensure your growth in this segment?
9. How will you reach these prospects and service their needs (i.e. what are the sales and delivery models)?
10. What market successes have you achieved so far (i.e. number of customers, sales revenue, etc.)?
11. How much money do you seek and what proportion of the business will the investors own?
12. Why do you need the money (i.e. what precisely are you going to spend it on)?
13. How and when will investors reach an exit? Why will your business be acquired for a large multiple of its current value and by whom?