How specific should I be when presenting to investors?

This is an area under constant debate. Here is my opinion…

I’ve seen thousands of plans and presentations. Most are a collection of opinions and that is why they don’t succeed. What do I mean by that?

People present their view of the world. They don’t go out and test that view. The whole idea of market research is to put forward a “real” view of the world based on accurate information.

Not just what you think – often from a narrow perspective. When analysing your business environment you need to collect accurate information from a range of sources and analyse that information to assess the impact on your business.

You will then need to decide a course of action based on the information that you have collected and analysed. The difference being, that your assessment is then based on more accurate information and you have a better chance of getting it right.

What’s the difference between an ‘opinion’ and a ‘fact’?

It’s pretty simple. Facts contain numbers, names, dates, etc. Facts are real hard data that can be checked – if the investor needs to do that. Opinions are what you think – a bunch of ideas or thoughts based on your own experience.

Don’t get me wrong – we need to have opinions. But when you want to raise capital your opinions need to be based on very strong and verified facts. Otherwise you lose credibility and any chance of getting the money you want.

You will never get all the facts you need to make a business case but if you can back up your case with lots of supporting independent evidence then your chances are looking much better.

I’m not saying get whatever facts and evidence you can. I’m saying that you need to actively and thoroughly search out the information you need. It may not be easy – in fact, mostly it’s time-consuming and frustrating. But you must do it. Just trying is not good enough.

Quite often I have seen entrepreneurs actually drop their concepts after this process. They saw for themselves that what looked like a great opportunity was more a dream that a realisable business concept.

That’s a good outcome. It’s better to find out early before you put too much energy and time into a concept that isn’t going to fly. It will save you a lot of heartache.

And that’s the real value in getting as many facts together and basing your projections on a more realistic view of the future. It will bring you back to earth and you’ll gain full marks for credibility. And that’s what you want.

Until next time.

Gail Geronimos, is the founder of Achaeus, which helps entrepreneurs develop their businesses and she has just started a new site https://pitchingtoinvestors.com/ with tools and tips about how to develop killer presentations to raise capital.

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