The creators of a new enterprise need to tell their story about the future of their business. Establishing credibility and trust through presentations of the venture’s innovative solution to an important problem can lead to an investment.
The integrated vision, story, and plan, including the business model, should show how the solution will be profitable within a reasonable period. Investors are interested in a favorable financial return. They also want to believe that they can be partners with trustworthy and capable entrepreneurs. A sample business model is provided in appendix A. Links to additional business plans, models, and slide (pitch) decks are provided on the textbook’s websites.
Negotiating a deal with an investor is an important part of the process. One can cement the relationship or destroy it through the negotiation process. The terms of the final agreement should align the means of achieving the potential return with the allocation of risk between the investors and the entrepreneurs.