When talking about finding capital for a business, the pitch can be simplified to three very basic points. Everything else moves from these central questions;
1. How Much/What For? The more specific the better, how much is the capital requirement and for what exactly will the capital be utilized. All accompanying documentation is helpful, but this answer needs to be well thought out and defended in any discussions with investors or lenders.
2. Repayment? Again, what is the plan? After all is said and done how will the capital be repaid? What are the fall back positions? Best case/worst case? What collateral is involved? Where is the value of the proposition?
3. Who Will Make It Happen? Certainly one of the most critical questions to be answered. Who has the previous experience to make the idea succeed? Is there a team, how well do they work together, how well do they know each other?
With a fully qualified explanation to these three questions, the road to understanding the business concept will be much easier. It will create the foundation that any capital provider is seeking to engage in further in depth negotiations.