YDC - E- Challenge How To Write An Investment Proposal 14th March 2009 Roger T. Marshall Managing Director Persimmon Capital Limited firstname.lastname@example.org (852) 3105-1580
What Is An Investment Proposal? A sum of the parts: Summaries and a Business Plan Summaries: Executive Summary and Investment Proposition Purpose: To communicate and market a business idea Objective: - Seeking business partner - Seeking financing - Seeking approval for a project - Winning a business plan competition
What Is A Business Plan? • Marketing document • Targeted to a particular audience – so need to know your reader • Anticipate questions / concerns of target reader • Comprehensive analysis of the business and the market opportunity
What Is An Executive Summary? • A concise version of the business idea • 3 pages long • Usually first part of the business plan- the business concept - outline business strategy - people - objective • Can be read as a standalone section • Allow busy readers to: • get a good general idea of the business plan • be interested enough to spend time to want to read a full business plan
What Is An Investment Proposition? • A more developed summary of the investment thesis behind an investment idea • 5 pages • Includes the outline of the business model • Includes summarised financials • Will demonstrate that the proposal is more than just an idea
General Principles Of Writing • Importance of: • Conciseness • Clarity • Being convincing • Visual impact • Use simple words • Use subheadings and numbers
General Principles Of Presentation Example #1 A business plan is a piece of writing to communicate and to market a business idea. Most of the time, the objective is to generate enough interest for the reader to consider entering into a business arrangement with you as a supplier, customer, strategic investor, partner or joint developer; providing funding to the plan or the project, such as seeking a bank loan, equity, university or government grant; or granting approval of a license application, internal approval, etc. In your case, the objective is to sell the business idea to win the business plan competition.
General Principles Of Presentation Example #2 A business plan is a piece of writing to communicate and to market a business idea. Most of the time, the objective is to generate enough interest for the reader to consider: • entering into a business arrangement with you (eg. as a supplier, customer, strategic investor, partner or joint developer); • providing funding to the plan or the project (eg. Bank loan, equity, university or government grant); or • granting approval (eg. License application, internal approval, etc.) In your case, the objective is to sell the business idea to win the business plan competition.
NexWave Use of summary Use of subheadings
Microsulis Colour? Rather dense text Good use of highlighting
Leisure Capital Use of Index probably superfluous Use of numbering for clarity
China Heart Group Summarised financial information Some financial analysis Operating metrics
What we want from you • 1. Initial Round – a 3 pager “Executive Summary” • This should summarise the business concept, the product or service, the perceived market for it, and very broad details of the team and execution • Semi-final round – a 5 page “Investment Proposition” • This will amplify the initial outline of the Executive Summary to show a more mature consideration of the business implications of the business concept • We also ask teams to present the business proposition in a 5-minute video • Final round – a full 30 page “Business Plan” • This will present the full business idea including details of the market and research into the product or service, financial forecasts and the plans for the execution of the business plan (team, partnerships, supply and distribution, etc.) • The plans will be presented to the judges in open forum.