How to Write an Investment Proposal/ Plan - A Step-by-step Guide

How to Write an Investment Plan - a Step-by-step Guide

Creating a compelling investment case is one of the goals for startups seeking funding. This market exposure alone can give you the financial support you need to grow. What must be included in the investment, therefore, is the data required before you present yourself to investors.

 But we've wanted to make reading this book easier for you by using a 12-step process to create an attractive investment plan. This is a list of activities to get a high performance.  We will start with a brief explanation of what investment is.


What is an Investment Proposal?

In simple terms, an investment plan is a text document, PDF or slide presentation about your startup (product or service) whose purpose is to raise capital. It is intended for those who have money and who may be interested in donating money.

A successful investment plan provides a strong argument for why your startup is worth investing in, which requires preparation before you start writing. In addition, seed funding plans should be submitted at the appropriate stage of product development, that is, at the MVP stage.

An investment plan is an exciting thing when you meet with potential investors. It is an exhibition that covers very important business information and parameters, in the hope that investors will be interested in supporting a business, product or service.

The best investment proposal for business will provide data in terms of return on investment. It will outline the company's plans and methods to remove the capital from the relevant market.


How to Write an Investment Plan - a Step-by-step Guide

Here Are the Essential steps to an Investment Proposal

You can find them all live in our free investment proposal template, as well:

1. Describe your Business

Along with your company name and cover, start your presentation with a second slide and your brief introduction. Consider this in the presentation of your main collection and name it like this. This slide should include a few sentences about what you do and the current state of your business. Also, show your tract briefly. When it comes to starting your pitch, think about a hook pitch that will appeal to your audience. A well thought out and simple question can help attract potential investors to your listing early on.

2. State the Problem

Next, indicate the problem you want to solve. Try to keep it short. This is usually expressed as a string. Explain what customers often want or are trying to achieve, followed by the pain points or barriers they face, and how current solutions in the market are failing to meet those needs and barriers.


3. Give your Solution

As with any problem and presentation, it must be followed by a solution. Describe your product or service and show how your audience can benefit from it. Investors will love this slide, so make it easy to read if you're emailing your chair. You can change it as much as possible and even have different versions to discuss with people for feedback before you decide on the final version of your investment.


4. Show Market Research

The next 3 steps will focus on your market research and how you plan to position your offering within a particular niche. You will want to show potential investors the valuable knowledge you have from your extensive research into your chosen market. What should be included in the investment in this sense in this sense is a clear demonstration that you know all the useful practices to be competitive in the given important market.

Your first slide in this series should include your differentiator - state the difference from the other options available, especially in terms of distribution. Also include what you know about your employee acquisition strategy. Consider a useful channel for this, all previous tests and any technology you are working with.

In general and for the data in this section, think about the number of production plans and unit costs, sales methods, sales channels and detailed plans. Show that you know that your product can be useful and explain step by step how to get there.

For slide number 2, expand on the size of the market you plan to enter. Provide a clear estimate of your total potential subscribers and available markets to serve and clearly define the percentage of market share you are targeting.

And for your last slide in this section going to market, clearly outline your goals, priorities, and activities that result from them. A clean chart should help you achieve the goal of showing how you have considered all the steps to find the right day for your growth and gain traction.


5. Show your tract

There is nothing more to traction than showing it visually. Make sure the graphics are top notch! Movement is important for investors. It may be important for a VC to decide whether to support a business or avoid this type of risk at an early stage.

We know the top three challenges faced by SaaS startups, e.g. Still, there are ways to show your traction even with no money.

If you don't have any traction, it's best to work on it before looking for seed money. Here's a quote from our CEO about seed funding for startups to help raise business capital as an entrepreneur if it helps.


6. Define your Goals

It should be clear how much money you want to earn in terms of money. And how to link the money to your goals. Explain how you provide the required investment, how it will be spent and the areas it will be used for training.

We have included an income table in our investment template that you may find useful. It works with key figures, income, other expenses, and burning income from quarters and years that should be easy to fill.

Use your customer support and goodwill to strengthen your case and explain your product path as far as possible.


7. Introduce your Team

Knowing that you have the right team to handle this business is important to your potential investors. They should be able to form an opinion about you, your customer, and everything you do.

Highlight the achievements of your team leaders at the individual level and across your business. Investors need to trust that you know how to take on many challenges and opportunities.


8. Show your Money if Necessary

Disclosure of your income may not be the safest (and even legal) option for everyone in all situations. Ask the legal and financial team about this. Under the green light, this part should be one long slide. If you're going this route, lay out your financial side in bullet form as well as charts and tables.

Not all airports include a cash slide. But, as we have already shown, if you add one, it is the first thing that investors want to see. Your financial plan says a lot about how you go about business. And part of the financial information is about your sources of income, expected profits and losses, loans, etc. As reasonable as possible here, it is the only way to gain the necessary trust in this important area.

An investment plan should have a clear timeline. In this way, investors can track how long you expect to complete each of the different stages of your work and your goals. You should also be clear about what you are asking for, technical capabilities, cost, scalability, etc.

Our investment strategy templates also help you with various in-depth traction charts.


9. Define your Exit Plan

Show how your investors will get their returns based on your strategy. Now it's time to put that on the slide. Explain whether you are considering an acquisition, a sale to a buyer or an IPO, for example. Give a comparison of your space as we prepare our slide design. It won't hurt to outline them in terms of what your business partners can do at different levels. You should also keep in mind the deadline.


10. Explain how you Plan for Making Money

With a clear marketing plan, you can fill out your income slide with as much detail as possible. Consider monthly users, for example, and your workload.


11. Know your Challenges and Risks

Identify the challenges you face and the risks they pose to your business and potential investors. Acknowledging them should reflect your thinking about your part of an effective competitive strategy. They should not ruin your investment plan.


12. Insists on Good Times

Finally, show what makes your current time the best for this money. Timing is everything in business, and it can make or break many aspects of your efforts. Provide the process, materials and lots of supporting data to show why now is the time for your business to move as you propose.


Tips for Writing a Comprehensive Investment Proposal/ Plan

Before we get to the section with startup investment templates, let's look at some tips. As in many other situations, when writing a business plan for investors, there are two types: what to do and what to avoid.


Things to avoid in Writing a Comprehensive Investment Proposal or Plan

An investment plan can be a lifeline for any startup, so coming up with a compelling case for your case is critical. At the same time, it should be specific and honest to demonstrate your competence in your field. We've already discussed what will get you there, so here are some things to avoid along the way:


• Don't Confuse Things

The text should be understandable to everyone who reads it, not just your peers. Also, using a lot of jargon or complicated phrases can make it seem like you've copied information instead of explaining it in your own words. A simple word also shows that you can work with your customers. How can you get people's attention if they don't understand what you're talking about?


• Do not be Shy

Don't beat the bush when talking about the financial support you need. Say exactly how much money you want to earn, what you will do with it and why you need it.


• Avoid Unnecessary Information

Enter only relevant information. Your skills and experience may be impressive, but if they don't support the business or strategy, they will create informational noise.


• Don't be Physical

Do not repeat the information you provided in the seed funding scheme, as it may be seen as negative.


• Don't take too long

When deciding how to pitch a business plan to investors, keep in mind that their time is often limited. Long predictions may not be read at all. Consider how much time people will spend reading and evaluating your plan, as well as your own time.


What to do in Writing a Comprehensive Investment Proposal or Plan

Simply put, you should try to make your speech as interesting as possible and show that you have the right answer.  Therefore, in addition to other tips on how to write a business letter for investors, it makes sense to pay attention to these points.


• Identify the Employee's Weak Points

When thinking about your resume, it's best to back them up with data. Research, interviews, focus groups and other methods can help you do this. The idea of ​​a problem-solving business is exactly what investors want to see in your investment portfolio. However, it is not necessary to solve all the identified problems at the same time. Instead, you can create a launch plan for your incremental product model.


• Develop Functional Models

Demonstrations speak louder than words. And it's a great way to show investors that you know how to turn their money into a working solution. Don't have this type of product working yet? Are you looking for a technology partner to develop it? We will be happy to discuss your ideas with you.


• Do a trial

Before writing a business plan for investors, it can help to get honest feedback on your model from a small group of early adopters. Analyzing it will help you better understand what people expect from your product/service and how to improve it to meet those expectations.


• Develop your strategy

Also, make sure your investment presentation includes a clear startup plan and setup. Investors need to understand your startup's potential, which includes market size and customer value proposition (why customers should buy the product). As a founder, you may not have a well-defined profitable idea to start with, but keeping these questions in mind increases your chances of getting funded.


A Final Point

An investment plan is an important document for any startup that needs to get funding. Financial planning for good seeds provides accurate data and forecasts that show investors your skills and ability to get it, eventually repaying their contributions. If you want to increase the chances of success of your project, do not rush to create a proposal.

Take the time to prepare the necessary information and ensure that the business plan and investment plan are written according to internationally accepted guidelines. After all, an investor may not read it if the article is not good.

So, take a close look at this planning process and include only relevant information that creates a good and realistic estimate of your startups potential. Don't make abstract statements and be precise in your calculations.

We hope that the 12 steps of what should be included in the investment will help you a lot as you sit down and think through your position. Remember not to overlook the shape of your slides. It is also important to make a convincing statement.

Do your best to ensure that you leave the meeting with a strong investment in your hands. If working with templates or creating beautiful content isn't your forte, consider consulting and design services to help you.

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