The Benefits of an Investment Proposal
Jan 05, 2015Having ascertained a market value for your business idea, acquiring funding is often fundamental to the progression of any seed-stage startup.
An investment proposal should remain simplistic in spelling out how your idea will accomplish a return on investment (ROI) for investors. Your unique selling point (USP) should be succinct and without jargon, for individuals to grasp without necessarily possessing knowledge of your speciality. Plain English that sparks immediate interest will strengthen your proposal’s acceptance.
Being ‘investment ready’ is crucial for progressing through the venture-life cycle. Many excellent ideas fail due to inadequate marketing, whilst the ordinary or refreshed implementation of existing concepts often proves successful with a well-prepared marketing strategy.
An attempt to market your idea to investors with an ill-conceived investment proposal and little or no appreciation of the entrepreneurial sector is unlikely to succeed. Experience of working closely with seed-stage ideas puts the expertise of the ISQ team and their partners at arm's length to the potential held by your human capital.
Human capital can be associated with the industry sector your business idea fills; having a clear understanding of your sector will strengthen the possibility of accurately relaying your USP to prospective investors. The ISQ’ service aims to clarify your USP in a clear and succinct manner, increasing your chances of securing seed-stage funding.
An investment proposal will indicate how and why potential funding will be utilised. Investors need a clear picture as to the manner of a lean spending structure to ensure an ROI that justifies a parting of their money. Establishing a projected cash-flow will provide investors with some figures to help sway their decision. ISQ and our partners can offer constructive advice and templates to form a concise proposal.
An appreciation of your competition already operating a business similar in nature must be clearly iterated to investors. Alongside your market value, knowledge of competitor behaviour is vital for securing investor interest.
Final points of considerations concern the scalability of your business idea: is the potential for expansion to a global market. Tinder and Babbel for example are ubiquitous across the globe as people seek relationships and learn languages. Initial viewpoints of your idea may falter in its potential to scale, ISQ can help develop your pitch to broaden this perspective, marketing a USP in broad terms.