Funding Sources want to know with whom they are dealing.
Lenders and Investors are both concerned with whether or not you have what it takes to be successful. Highlight information that demonstrates you have the ability to make this business a success. Detail your education, past successes or failures that made you stronger. Indicate how you started this business and why it will be a success.
Who are you? Take a deep look inside. Character is not only about winning. It’s about getting up again and again when you’ve been knocked down. Will you panic in a crisis? Will you run for cover when things get rough? Are you honest? Do you have integrity?
To be a successful entrepreneur you must not only be able to start well, but you have to be able to finish strong. For most, running a business is a hard road and not an easy one. Search your soul. If you don’t have this kind of character, do yourself and others a favor and don’t even start.
Are you a stand alone player, or are there others helping you? If alone, do you plan to keep it that way? Who will comprise your management team? Give detailed resumes of all those involved, along with a description of the vital roles they will play in the business’ success. If your management team is weak, take on the task of building it up in order to support your own success, as well as the success of your funding request.
Third Party Professionals
Listen to "GOOD" advice, and forget "BAD" counsel. Carefully seek out and select professionals who can help you. Do your homework in advance of your need to avoid delays. These legal, financial, tax, marketing, etc., professionals may be willing to advise your company for in exchange equity before you have the money to pay them.
What plans have you made to ensure your business will continue to survive without you? Have you trained someone to take over? Is there going to be key man insurance in place for the possibility of illness, disability or death? Without you, can the business continue to survive? Describe how your management team will be able to execute the plan.
Board of Directors
An experienced Board of Directors is invaluable. They should be seasoned business executives with knowledge and contacts to help you. Most will serve in exchange for equity if they believe in your plan. Seek them out from within your industry and industries that are your target market. Building a solid Board of Directors should occur before seeking capital.
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