Ahead of Pembridge Partners delivering Vision+Media’s readiness programme for digital and creative businesses in the north west of England, Matthew Stafford, the company’s specialist in mergers and acquisitions, investments, finance and corporate strategy offers five tips to consider for bringing in investment.

1, Write a Business Plan with a killer Executive Summary

Any investor will want to know why are your company is different. Why should they invest in you? What sets you apart from the competition and why will you win?

If you can get your business plan in front of any investor then the Executive Summary is the page that they will read first – this could be your first they know about your company so you have to make it count. The Exec Summary needs to describe the problem your proposition is solving, what you’ve done to address this, what sets you apart and why you are the best company to solve this problem.

You need to start strong – this is no time to save the best for last – the first paragraph should be extremely compelling and confident. It is not a place for jargon – show the investor how you will make them money.

2.Ten slide presentation & practice pitching

Your first contact with an investor may be a pitch – the whole point of this is that it’s the hook to get you a one-to-one with an investor. So keep it short and sweet. A picture tells a thousand words so include graphs and pictures, any words should be in very large font – if you need to go below font size 32 in a pitch then you have too much text.

Preparation is crucial – angels and venture capitalists see thousands of business plans and pitches each year so make it stand out, but don’t include anything ‘wacky’ to attract the wrong kind of attention.

Do not rely on having an internet connection and don’t do a live demo. If things can go wrong they likely will so by all means have a ‘step through’ guide or flowchart (on one page) but a live demo or slow/non-existent internet is too much of a risk.

Practice, practice, practice – don’t be reliant on your slides or notes – if you have to read about your own background from notes then that doesn’t instill confidence.

3.The Finances

We know you believe in your offering – technical and creative as it is – but investors are in the business of making money so they want to know what your finances are and what they will be in the next 3 – 5 years. There’s a fine line between exciting headline figures and being believable and realistic, especially in these uncertain economic times so get some advice or mentoring if you’re unsure to get this absolutely right.

4.The Team

You don’t necessarily need a complete team as the investor may be able to help with this, but there must be some structure. Who is in overall charge, who looks after technology, who is sales lead and who is CFO? Everyone trying to do everything will not work and hinders focus and proper execution.

People are key in any organisation and its people who will decide whether you go through to the next stage or not – remember your manners, be polite, confident and respectful even if you disagree with who you’re talking to. Don’t be arrogant; cocky and thinking you know it all will not warm yourselves with the investors – it’s a fine line as you must show that you are confident and know your business but humble enough to listen, show respect and take on board what they have to say.

Investors invest in teams that can execute a proposition – they must believe in YOU over and above the proposition.

5.Ask yourself the tough questions

What are your key challenges? Who is your competition (don’t say, “we don’t have any competition” please)? How many paying customers do you have and how much is the average cost of customer acquisition?

Don’t contradict yourself – things should be simple, straightforward and logical – don’t over complicate your proposition.

You must know your industry, market and finances inside out. If an investor can answer a question about your industry that you can’t then you’re in trouble.

In summary it’s all about preparation – if you’re not ready then get advice you’ll respect but at some stage you’re going to have to ‘go for it’ so prepare, practice then perform!

For more details on how to join Vision+Media’s Fast Company Programme 2  and watch a bigger slideshare presentation from Pembridge on debt and equity investment, check online.

Applications must be made before 10 Januray.

You can also email Matthew if you are not a NW based company but are interested in Pembridge Partners and investment for creative businesses.