How to Write an Investment Summary

Your business needs to be sustainable so that you can have smooth and continuous operations within the existence of your company. Aside from your customers, you also have to take care of your investors and other stakeholders who trust you especially when it comes to the company analysis, financial ability and current market standing.

As a corporate document, an investment summary is usually done by professionals and experts who are already aware of what to include in the specific material. This is to make sure that the needs of all stakeholders and investors are identified, discussed and addressed. If you want to know more information on how you can come up with an effective investment summary, the discussion below can make you more knowledgeable about the investment summary document development.

To Whom is an Investment Summary Created for?

For you to come up with a highly-usable investment summary intended either for a business proposal, financial aid request or closing an investment deal; you first need to identify its purpose. Alongside this, you also have to be aware of the entity to whom you will be handing the document. Doing this will help you to specifically highlight the strengths of the business to make it marketable and appealing especially to investors. Here are some of the entities who commonly browse, review and assess an investment summary:

  • Angel Investors or Financing BodiesInvestment summary is very important for angel investors as this document can help them to decide whether to provide a start-up business an amount that will be used for its capital. It is very common for angel investors to provide capital as long as it can be converted to debt. On other instances, angel investors may request the capital given to be converted to ownership equity.
  • Investors. Aside from angel investors, there are also individuals and corporate entities who would like to invest in a business. Providing an investment goal summary to these stakeholders will allow them to clarify certain information about their investment. More so, the discussion of ROI or return of investment can be discussed in this document.
  • Banks. Specifically for business start-ups, the bank is one of the most efficient financial or funding sources. The reason why banks ask for investment summary is for them to have an idea of the financial projections and forecast of the company. More so, it allows them to be aware of certain information like current business financial figures that will enable them to decide the amount that they can provide the business with.
  •  Business Partners. If business ownership is under a partnership agreement, partners need to know the information present in the investment summary. If a potential partner is willing to invest, he or she must first be secured with the sustainability of the business. Doing this will make the potential partner be more confident to invest in the business especially if the investment summary presents an impressive and promising financial standing.

How to Create an Investment Summary

An investment summary is one of the essential tools that businesses use to attract an investor. If you can come up with a complete and attractive investment summary writing, then it is most likely that you can easily convince entities to invest their money in your business. Here is how you can create a comprehensive investment summary:

  • Start the document with an executive summary or a brief discussion of the business, its operations, and its financial capabilities and promise.
  • Specify important items in the introduction of the business reports which includes the benefits and advantages that investors can get in exchange for the particular investment scope or size that they are willing to immerse in.
  • Create the body of the investment summary by creating particular clauses of discussion. These clauses should discuss important areas of the business. Some of the items that should be present in the discussion are as follows:
    • The analysis of the market of the business.
    • The target consumers or clients of the company.
    • The external factors that can affect the success of the business.
    • The description of the business proceedings once the investment deal has already been sealed.
    • The financial statement analysis of the company which should include the sales forecast for the business.
    • The spending and other financial plans of the business for a particular period of time.
    • The precise discussion of the activity or project where the investment will be used.
    • The specification of the workforce including the management and the employees in the operations.
    • The executive summary of a marketing plan, sales strategic plans and other reports that are relevant to the success of the business.
  • End the document with a discussion of the credentials of the business and other reasons on why the investors need to trust the company aside from the facts and figures that have been relayed in the entirety of the document.

Why Do You need to Write an Investment Summary?

Investors and other stakeholders require further knowledge about the financial facts of the business plans. If you want investors to be more encouraged to trust the business with their investments, you have to make sure that you can present figures and other essential details in an organized manner. Listed below are some of the reasons why it is highly suggested for your business to have an investment summary.

  • To discuss the business operations and other relevant discussions. Investors rely on facts whenever they are looking for businesses to invest in. Having an investment summary can help you present the business in a precise manner. This will give the investors a clearer idea of what kind of business it is that you would like him or her to be a part of.You may also see Business proposal letters.
  • To ensure investors that you can pay them. Investors provide financial support as they believe that their investments have long-term benefits for them. If you want prospective investors to be more confident in terms of investing in your business, you have to give them an investment summary that can specify ways on how you can pay their investments back. You may also see budget proposals.
  • To specifically inform investors about the minimal risk of the investment. If all the information that investors would like to know about are in an investment summary, they can point out the risks that are associated with the activity. The lesser the risk, the better.
  • To directly answer specific questions from investors. If you have an investment summary at hand, it will be easier for you to provide pieces of evidence or proofs that are substantial enough to answer certain questions from investors. These questions can be identified from initial conversations before the investment summary has already been done. Should additional information be needed, you always have to be ready to update your investment summary.

Are You Prepared to Make Your Own Investment Summary?

When making an investment summary, you have to remember that investors analysis are willing to risk their hard earned money. With this, you have to give them a document that can make them feel comfortable with the transaction which will then enable them to trust your business and its possible future successes.

Develop an investment summary containing the financial report and other essential items that you need to present with the help of samples and templates. You can also take note of the tips that we have specified in this post for references. The more information that you have about the document development, the easier it will be for you to come up with an investment summary that can provide a positive impact to your business and its relationship with its investors.

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