1. SUCCESSFUL IN THE INVESTOR’S MIND, WHAT IS A SUCCESSFUL BUSINESS? 1. Positioning: The voice of the customer comes first and you have correctly heard that voice 2. Strategic Direction: You have stuff that no one else has and everyone wants 3. Tactics: Your “been there done that” execution team is surrounded by geniuses that work for peanut$ 4. All you need is a little money 1

2. 1. POSITIONING Your company Voice of the Customer New Old Customer Needs Customer Wants Most important step Identify your audience in each presentation Position your company accordingly to address their needs and wants Stay focused! 2

3. The VC reports to a limited partner The VC Needs: 10x returns A clear exit Belief in the management team Ability to help influence the direction The Angel reports to a significant other The Angel Needs: To belief his money will come back to him To believe that this is his best opportunity to earn a substantial return on investment THE INVESTOR 3

4. Venture Capitalists You to be successful Sales The ability to get out at any point in time if things go bad Angels You to be successful Sales The chance to be part of a remarkable success THE INVESTOR WANTS 4

5. IF YOU DON’T PASSIONATELY TALK ABOUT YOUR “WIDGET” OR “YOUR DISRUPTIVE TECHNOLOGY”, YOU WILL NEVER GIVE THE INVESTORS WHAT THEY WANT TO HEAR! 5

6. Pinpoint your business’ core competencies (foundations) Identify strategic steps for the company Ensure each step is in line with the company’s foundation The Board of Directors plays a vital role in developing the strategic direction 1 st foundation 2 nd foundation Strategic steps 2. STRATEGIC DIRECTION 6

7. Can you list just two things that will make your investor excited? What does the investor have to know about your market to make him believe that you will be the next category killer? Have you told him your strategy for making sales? Have you proved to him the “Dog will eat the dog food”? How does the investor know that some one won’t come in and “steal your lunch money”(which belongs to him in his mind); Is your IP adequate? Do you have an execution plan that he can believe in? Who will help you achieve the success that you must achieve to give him his money back( is y9our board awe inspiring) And by the way how does he get his money back? YOU AND YOUR COMPANY 7

8. 12 Tactics That Make Sales Common mistake is doing this step first Don’t try to take on more than 12 tactics Management execute these steps to the strategy Make sure you cover how these tactics will make everyone want to buy you 3. TACTICS 8

9. The job here is really simple: sell the team if they are exceptional, sell the execution plan if they aren’t Don’t exaggerate the capability of the team or the background: If it’s skinny the board better be great, if it’s exceptional take the time to tell them why The plan about how you make money must be crystal clear and rock solid For those of you that are unclear, an execution plan is composed of two things: the sales process and the scale process How you make money is the only element that counts They don’t believe your projections And that really leads to the ASK NOW IT’S ABOUT THE TEAM 9

10. It’s really the very simple ending to an effective presentation How much do you need? How are you going to spend it? How much of the company can they have if they give you the money? –Saying you are open to negotiation is a death sentence –“If you do not know how much your company is worth they should take advantage of you” How are you going to make the investor and your team a great deal of money? And when will all this happen? 10 THE ASK

11. Your Company New Old Customer Needs Customer Wants 1 st foundation 2 nd foundation Strategic steps Create tactics to make sales Step 1: Positioning -The voice of the customer is key Step 2: Strategic Steps -Utilize your Board of Directors Step 3: Tactics -Specifics on executing your strategy IN SUMMARY 11

12. WHAT IS AN ENTREPRENEUR? “Someone who creates and builds a new way of doing business with an unreasonable expectation of success.” “Many of life's failures are people who did not realize how close they were to success when they gave up.” – Thomas Edison

13. The Cube 300 East 2 nd Street suite 1405 Norman Smith 775-224-9900 normansmith@sbcglobal.net THANK YOU! 13