Fractional Finance Director Newsletter – August 2025

How to Prepare Your Business for Investment 

“If you can’t explain it simply, you don’t understand it well enough.” — Einstein 

This quote sums up my approach, too many people make Finance seem far more complicated than they need to. As the founder of a business, you may only need to raise funding once every 5 years or so, and it can seem daunting and incredible confusing. I try to simplify it for my clients. 

Yesterday, I ran a session on how to prepare your business for investment, using a simple 5 strep approach. Here’s the framework I shared: 

1. Start With the Story

Investors fall in love with the story, so start there, and remember the best stories are personal so: 

• Make it personal – Passion is persuasive. Your story should show belief, not just logic. 

• Share your origin – How did the idea come about? What makes you care? 

• Clarify your “why” – What problem are you solving, and why does it matter? 

• Communicate your vision – Where are you headed in the next 3–5 years? 

Great stories are authentic and memorable. They create emotional connection and signal clarity of purpose – a powerful combination when pitching. 

2. Showcase the Team

A great idea is only investable if the right people are behind it. Investors will ask: Can this team execute? 

• Highlight key players – Who’s on the team, and what’s their track record? 

• Show complementary skills – Does your leadership cover tech, ops, sales, finance? 

• Demonstrate commitment – Are you full-time? Focused? Ready to scale? 

• Be honest about gaps – No team is perfect. If something’s missing, say so and share your plan to fill it. 

The best teams are credible, coachable, and committed. If you’re lacking in one area, show you’re aware and proactive. 

3. Understand Your Market

Market clarity is critical. If you can’t clearly explain your customer and your niche, investors will assume you don’t know it well enough. 

• Define your target market – Who exactly are you serving? 

• Show the size of the opportunity – Market size, pain points, and growth trends. 

• Present your position – What’s your niche, and how are you different? 

• Validate demand – Whether it’s revenue, signups, LOIs or pilots – show there’s real interest. 

Vague or inflated claims are a red flag. Ground your opportunity in facts and first-hand insights. 

4. Lay Out a Clear Plan

Investors want to understand not just what you’ve done – but where you’re going, and how you’ll get there. 

• Go-to-market strategy – How will you attract, win, and retain customers? 

• Short- and long-term goals – What milestones are you aiming for, and when? 

• Scalability – Can this grow efficiently over time? 

• Identify risks – No business is risk-free. Show you’ve thought about them – and how you’ll mitigate them. 

This is where strategy meets realism. Show ambition but stay grounded. 

5. Get Comfortable with the Numbers

The numbers don’t need to be perfect – but they need to be clear, logical, and defensible. 

• Present a financial model -Revenue streams, cost structure, margins. 

• Forecast with logic – What are the assumptions behind your projections? 

• Show financial health – Burn rate, cash runway, unit economics. 

• State your Ask – How much are you raising, what will it be used for, and what return are you aiming to deliver? 

Avoid spreadsheets that need a PhD to understand. Keep it simple. If you can’t explain your numbers in plain English, you’re not ready to pitch. 

Final Thought 

Preparing for investment doesn’t have to be overwhelming. At its core, it’s about telling a clear story, backing it with a solid plan, and showing that you and your team are ready to deliver. 

If you’re fundraising or planning to, focus on simplifying your message- not adding more detail. That clarity is what gives investors’ confidence. 

Want help building a clean, credible investment case? Let’s talk.