Question

Finance and leasing are very important to the overall success of a restaurant. It starts with securing capital funds. What are some key areas of consideration when presenting a financial plan to a group of investors? What are some do's and don't's?

Answer 1

Few of the key areas of consideration when presenting a financial plan to a group of investors are:

1) The plan should have an equity valuation which clearly says how much your business is worth and what equity does it command.

2) The plan should also have a break even point for the investors which should give them a fair bit of idea as to when they will get the money back or start generating returns.

3) It should have a clear structure around debt and equity portion of the business (Forecasted)

4) The business idea should be clear and crisp in front of the investors considering they should understand the core behind it.

Some Do's and Dont's:

1) Do talk about the DA of your business idea. Why you are separate from the competitors and why you should succeed in the market.

2) Do instill the fear in the investors that they will miss the bus if they dont invest in the business at this moment.

3) Do talk about the future acquisitions as well as in in 3-5 years of time why your business would be attractive to acquire.

4) Dont just strech the point too much. Keep everything really short, crisp and direct to the point.

5) Dont just go blank as to how to use the money from the investors. Go with a defined plan as to how you will utilise the investment in your existing business.

6) Dont hide the potential areas of risk or danger in your business. Discuss it with open arms.