Enhancing and Restoring Safety & Quality Cultures - Dave Litwiller - May 2024...
Five guaranteed ways NOT to get your business plan funded
1. David Karp, Sprout Lenders
Greater Boston Slow Money Business 101
October 10, 2012
2. The mission of Sprout Lenders is to support a
vibrant and healthy local food system by
making small loans to farmers, producers,
and food system entrepreneurs that serve the
greater Boston area.
Foodies, finance majors, sustainability geeks,
etc. looking for decent ROI and better food
Next loan application deadline: November 15
◦ www.sproutlenders.com
◦ sproutlendersllc@gmail.com
◦ @sproutlenders
3. Left and right-brained marketer
Director of Marketing, Currensee
Treasurer, Photographic Resource Center at BU
Founding Member, Sprout Lenders
Business coach, Neighborhood Business Builders
MBA, MIT Sloan
Favorite sandwich: grilled cheese (extra sharp
local cheddar)
◦ dkarp@limeduck.com
◦ @limeduck
5. Some investors read the financials first, and
the rest not at all if they don’t add up
Cashflow is more important than your mother
Show a clear path to profitability and payback
that supports your narrative
6. Risk is part of business and of life
Showing awareness of the risks of your
business and explaining how you’ll mitigate
them builds your credibility
There are always known risks and unknown
risks, a good plan leaves room for both
7. Some funders look at the team first, and
throw the plan away if they don’t impress
Even if you’re the only employee of your
business, you’re probably not the the only
member of your team
Build a team with good credentials and good
contacts – it’s your support system and it
builds confidence with investors
8. Can you sell 500 pounds of sausage a week?
How do you know? What makes you think so?
Nobody knows the future for sure, but you
must build a convincing case for the numbers
in your plan
Use comparables, competitors, primary data,
anything you can get, and document it
9. They read it first, so you write it last, after
you’ve done all the rest of the hard work
This is your first and sometimes only chance
to capture the interest of a funder
Present key data
Don’t contradict the summary later in the
plan
Provide a compelling case for why you will
succeed, but don’t sound like you’re selling
10. Obfuscate the financials
Ignore the risks
Go it alone
Don’t support your assumptions
Phone in the executive summary
11. If your investors don’t get what you’re about,
nobody’s going to be happy
Sustainability and social good are not excuses
for sloppy math or non-functional businesses
Want to run a non-profit organization? It’s
harder, and the paperwork is much worse
You owe it to your community and to make
your business work (oh yeah, and your
investors, too) – your business plan is your
promise to both
12. If this presentation taught you something or
helped you out…
◦ Share it with others who might like it
◦ Modify it and share it some more
◦ Come back here next time and give it – better yet
give a better one – and share that one, too
◦ I’ll post it here:
http://www.slideshare.net/limeduck
Sprout Lenders www.sproutlenders.com
David Karp dkarp@limeduck.com