Cover Sheet

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YDC - E- Challenge How To Write An Investment
Proposal 14th March 2009
Roger T. Marshall Managing Director Persimmon
Capital Limited roger.marshall_at_persimmoncapital.co
m.hk (852) 3105-1580
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(No Transcript)
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What Is An Investment Proposal?

• A sum of
• the parts Summaries and a Business Plan
• Summaries Executive Summary and Investment
  Proposition
• Purpose To communicate and market a business
  idea
• Objective - Seeking business partner
• - Seeking financing
• - Seeking approval for a project
• - Winning a business plan competition

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What Is A Business Plan?

• Marketing document
• Targeted to a particular audience so need to
  know your reader
• Anticipate questions / concerns of target reader
  
• Comprehensive analysis of the business and the
  market opportunity

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What Is An Executive Summary?

• A concise version of the business idea
• 3 pages long
• Usually first part of the business plan- the
  business concept
• - outline business strategy
• - people
• - objective
• Can be read as a standalone section
• Allow busy readers to
• get a good general idea of the business plan
• be interested enough to spend time to want to
  read a full business plan

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What Is An Investment Proposition?

• A more developed summary of the investment thesis
  behind an investment idea
• 5 pages
• Includes the outline of the business model
• Includes summarised financials
• Will demonstrate that the proposal is more than
  just an idea

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General Principles Of Writing

• Importance of
• Conciseness
• Clarity
• Being convincing
• Visual impact
• Use simple words
• Use subheadings and numbers

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General Principles Of Presentation

• Example 1
• A business plan is a piece of writing to
  communicate and to market a business idea. Most
  of the time, the objective is to generate enough
  interest for the reader to consider entering into
  a business arrangement with you as a supplier,
  customer, strategic investor, partner or joint
  developer providing funding to the plan or the
  project, such as seeking a bank loan, equity,
  university or government grant or granting
  approval of a license application, internal
  approval, etc. In your case, the objective is to
  sell the business idea to win the business plan
  competition.

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General Principles Of Presentation

• Example 2
• A business plan is a piece of writing to
  communicate and to market a business idea.
• Most of the time, the objective is to generate
  enough interest for the reader to consider
• entering into a business arrangement with you
  (eg. as a supplier, customer, strategic investor,
  partner or joint developer)
• providing funding to the plan or the project (eg.
  Bank loan, equity, university or government
  grant) or
• granting approval (eg. License application,
  internal approval, etc.)
• In your case, the objective is to sell the
  business idea to win the business plan
  competition.

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NexWave
Use of summary
Use of subheadings
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Microsulis
Colour?
Rather dense text
Good use of highlighting
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Leisure Capital
Use of Index probably superfluous
Use of numbering for clarity
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China Heart Group
Summarised financial information
Some financial analysis
Operating metrics
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IMQ
Boring.
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What we want from you

• 1. Initial Round a 3 pager Executive Summary
• This should summarise the business concept, the
  product or service, the perceived market for it,
  and very broad details of the team and execution
• Semi-final round a 5 page Investment
  Proposition
• This will amplify the initial outline of the
  Executive Summary to show a more mature
  consideration of the business implications of the
  business concept
• We also ask teams to present the business
  proposition in a 5-minute video
• Final round a full 30 page Business Plan
• This will present the full business idea
  including details of the market and research into
  the product or service, financial forecasts and
  the plans for the execution of the business plan
  (team, partnerships, supply and distribution,
  etc.)
• The plans will be presented to the judges in open
  forum.