Business Plans

Your information memorandum is an important piece of document. It provides in-depth information about your fundraising proposal and can come really handy when investors make a decision. Here’s a look at some of the top mistakes to avoid when creating an information memorandum .  Providing Insufficient Information about Usage of Funds You must have a concrete plan of what you’ll be doing with the funds being raised. Prospective investors are analyzing the management’s skills and their execution capabilities. Very often, business owners provide very little information in the Use of Funds section. This is your opportunity to provide a summary of how the investment funds will be used, and what goals will be met in the next 12 to 24 months.  Poor Board of Directors Composition  Investors are effectively investing in a management’s capabilities in executing a plan. This is an important consideration that decides whether your investment proposal receives a ...

You have an investment meeting coming up. Your pitch is ready and you’re all set. You will need a top-notch information memorandum (IM) that you hand over to investors after your knock-out pitch. A confidential information memorandum is a short document outlining your business plan. Usually running for 20 to 30 pages, your IM includes projections, analysis and explanation that you could use to pitch to your investors without boring them to death. Here are some essential aspects to cover in your information memorandum. Financials Be sure to include critical financials supported by explanations and pricing strategies. Include comments and notes where necessary. Lease and Rental Terms What are the lease and rental terms? What is included? Are storage, car parking and outgoings included in the lease contract? What is the rent and what are the payables? What’s the GST component? If there are any unique aspects or improvements that are required in the office space,...