August 27, 2010
Did you know that if you are doing the old-school way of sending your business plan to investors, you are wasting your time? Thatâ€™s right. The old way of approaching investors is as obsolete as ditto machines and carbon paper. The internet has changed the way investors do business and how entrepreneurs approach investors.
So should you still spend the money in having a business plan before approaching an investor then? Yes, definitely. Your business plan is the roadmap of your business, but the point is that a business plan is a very involved document and the average investor will have over 1,000 business plans on their desk in one work week and twice that number in digital format on their computers. There is now way they have the time to look at all of those plans.
So, what should you do? Well, itâ€™s simple. Draft what is known as a teaser email. A teaser email is an email that is designed to get the investor hooked on your venture. The teaser email should be simple, yet it should highlight the key reasons why the prospective investor should be interested in your venture. The teaser email should not be too long, as not to bore the investor.
What highlights should you have in your teaser email? Well, explain a brief overview of your product or service and what unmet needs it can meet. Depending on your industry, explain the defects in that industry and briefly explain what your competitors have versus what you have. Hint on your barriers of entry, which can protect your business against the competition and even how you would be able to win over customers from your competition to buy your product or service.
Remember, make it short and sweet. Use words that an investor would use and get him to see that you know about business and numbers. This is what gets them interested. Though in a teaser, you do not need to reveal exact numbers or details of your business model. Thatâ€™s left for the business plan. Your teaser email should simply briefly explain that you believe the investor will have a high ROI, or return on investment, if he invests in your venture. Then in brief bullet points, explain your venture is projected to have a high ROI.
VCgate has the resources that you need to contact investors and allows you to email investors directly from the database with the single click of the mouse. With VCgate, you can even send your teaser email to multiple investors with one click of the mouse! You will not regret buying the software and best of all we have a trial version for you to try it for free! So, letâ€™s get you started, Ok.
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