Investment Business Case Services

Every startup seeking funding needs a compelling ‘business case for investment’. This is more than just a detailed plan of your business; it’s a persuasive tool designed to attract and convince potential investors of the feasibility and potential profitability of your business idea.

The investment business case serves several critical roles:

Investor Attraction

First and foremost, a well-crafted business case is the key to catching the eye of potential investors. It serves as the foundation of your short and long-term growth strategy, and it can be the difference between securing a meeting with a potential investor or being passed over.

Demonstration of Understanding

The investment business case showcases your understanding of the market you’re entering, the unique value proposition of your product or service, and the strategies you’ve developed to overcome potential challenges.

Risk and Return Evaluation

The document helps potential investors evaluate the potential risks associated with investing in your startup, as well as the projected return on their investment.

Justification for Investment

It provides the justification needed for investors to inject capital into your startup business. By detailing how you plan to use the funding and the growth it will facilitate, you provide investors with a clear understanding of how you plan to deliver a sizable return on their capital as a result of your startup’s success.

Financial Overview

Finally, a business case offers a detailed overview of your startup’s financial health and projections, including revenue forecasts, cash flow statements, and break-even analysis. This helps investors assess the viability of your business model.

So, what should a startup business case for investment contain? Here’s a more detailed look at the components of a strong investment business case and some tips on how to ensure you meet these criteria.

Executive Summary

This section serves as the first impression of your business plan. It should be concise, engaging, and should summarise your startup’s unique selling proposition, target market, product or service, and financial summary. 

• Tip: Write this section last to ensure you’ve captured the key highlights of your business plan.

Company Description

This section provides detailed information about your business. Discuss the nature of your business, the market needs it addresses, and how your products or services fulfil these needs.

• Tip: Clearly articulate your business’s mission, vision, and values as these details help investors understand your motivation and business direction.

Problem Statement and Why Now

Use data and insights to show that there’s a problem that needs solving. This will allow you to show that now is the perfect time for your business to thrive. 

• Tip: Gather data using surveys and questionnaires; industry reports and academic journals. Visualise your data and bring it to life with a case study.

Product/Service Description

Describe your product or service, focusing on the benefits to potential customers and highlighting what sets it apart from the competition. Explain how it solves a problem or improves the customer’s life. 

• Tip: Use clear and understandable language to make it easy for investors to see the value of your product or service.

Market Analysis

Conduct a detailed analysis of your target market, demonstrating that you have a deep understanding of your customers, their needs, and how you can fulfil those needs. This section should include details about market size, customer demographics, buying patterns, growth potential, and competitive analysis. 

• Tip: Using relevant market research and statistics can help back up your points and provide a more compelling case.

READ: Investment Readiness: How To Master Your Market Opportunity

Revenue Model and Commercialisation

A business idea is only as good as its ability to make money. Explain how you plan to commercialise your concept and provide evidence that your target audience will accept your proposed revenue model. 

• Tip: If you already have paying customers, talk about your current model and future revenue potential.

Sales and Marketing Strategy

Outline your strategy for attracting and retaining customers. Discuss your sales process, pricing strategy, promotional plans, and marketing channels you intend to use. 

• Tip: Focus on strategies that you can realistically implement and provide a timeline for their execution.

READ: Startup Marketing Strategy: 6 Approaches Every Founder Needs To Know
READ: Startup Marketing: 5 Low-Cost Strategies For Achieving Growth On A Budget

Operational Structure

Detail your business’s operational structure. Who are the key team members? What are their roles and responsibilities? Highlight the skills and experiences they bring to the business. This can also include information about your production processes, suppliers, facilities, etc. 

• Tip: Show that you have a well-rounded team capable of executing your business plan.

Financial Projections

Provide clear and realistic financial projections. This should include profit and loss statements, balance sheets, and cash flow statements for the next three to five years. Also, detail your funding request, specifying how the investment will be used and how it will help grow your business. 

• Tip: Use a conservative approach when making financial projections and be ready to justify your figures.

READ: How To Prepare Financial Projections For Potential Investors

Investment Ask

Clearly articulate what you are asking for from investors. Specify the amount of capital you are seeking, what you intend to use it for, and the expected return on investment. 

• Tip: Align your funding request with your financial projections and demonstrate a clear path to profitability to reassure investors of your business’s potential.

Risk Analysis and Mitigation Strategies

Identify potential risks and challenges your business may face and how you plan to address them. This could include market risks, operational risks, or financial risks. 

• Tip: By acknowledging potential risks and providing strategies to mitigate them, you can build trust with investors by showing that you’re prepared for potential pitfalls.

Remember, a strong business case for investment isn’t just about having a great idea—it’s about demonstrating your understanding of the market, your customers, your team’s capability, and your financial acumen. Ensuring these sections are well-crafted and thoroughly researched will help you create a compelling case that resonates with potential investors.

Before you create your business case for investment, you must ensure that your business is indeed ready for investment – that it is ‘investment ready’.

Investment readiness refers to the state in which a startup or business has prepared itself to be an attractive prospect for investors. Being ‘investment ready’ means a founder has all the elements in place that investors look for when considering whether to commit funds to a business.

While many of these elements are about the mechanics of the business itself, one of the most important aspects is demonstrating your readiness.

There are Investment Startup Business Case Services companies that can help businesses get ready for investment and develop their business case. We at Robot Mascot are one such company.  

If you are seeking investment for your business and need help developing your business case, why not get in touch?   

One of the ways in which companies like us can help businesses like yours, is by providing a business case investment appraisal – because this is what potential investors will do. 

A business case investment appraisal – or simply ‘investment appraisal’ – from Robot Mascot includes:

Business Plan Review

Review the key elements of the business case described above in the section: What’s In A Business Case For Investment. From your executive summary and company description to your sales and marketing strategy, ensure everything is present and, importantly, correct.

Financial Projections Review

Review the core components of your financial model including your five-year P&L (profit and loss), balance sheet and beyond.

Pitch Deck Review

Review your pitch deck and one-pager. Consider the structural narrative, clarity of communication and the impact of its design.

Let us know if you’d like us to help you get ready for investment.