Week 4 team assignment

Angel Investor/Venture Mock Presentation Part 1

The Elevator Speech

An elevator speech is a brief description of a company, idea, or product. It explains a concept to enable any listener to understand it within the shortest duration (Burns, 2016). The following is an elevated speech regarding the beauty industry.

"Did you know that almost 15% of the American citizens are not comfortable with their facial scarring and natural looks? It results in a loss of confidence among them. We have established a viable beauty industry that provides services of high quality in facial scarring and natural looks treatment to the affected clients (Burns, 2016). As a result, the clients can regain confidence from their facial scarring and become happy of their natural looks. We have so far established contracts with over 400 celebrities in the United States.

We are now looking forward to raising extra capital to expand the industry's operations and replicate the entities worldwide. Our team has over 20 years of experience in the beauty industry and is well established to develop the business effectively.

Describe Product/ Business

The beauty industry of make-up consists of bringing out the beauty that is already thereby enhancing beauty. There are so many companies that sell make- up and beauty products, however, this company stands out because of their lipstick product. The lipstick product consists of a lipstick that only has to be applied once every 8 hours and the color doesn't change. This product is popular for special occasions such as weddings, anniversaries, dinners, etc.

The beauty industry includes businesses that help to make people look their best. The cosmetic industry is rather large because there are so many types of services that can be offered. Another service can include facials and skincare which is important under the makeup to keep the skin refined. Also, there is a make-up artist that provide the service of getting a professional make-up section or even offering skills that will help to teach women how to apply their beauty products correctly. The cosmetic industry grosses billions of dollars each year and defiantly won’t be slowing down anytime soon.

Financial Statements

According to Accounting Tools (2018), financial statements are a collection of summary-level reports that shows a company’s financial results, position, and cash flow. These reports are beneficial in showing if the company can generate cash and the sources that were used to do so. Whether the company can pay their debts and track financial results on a trend line to detect any profitability issues. It’s also instrumental in deriving financial ratios that indicate the condition of the business and investigating business transactions to make sure they line up with the amounts on the financial statements. There are three types of financial statements. A balance sheet shows the company’s assets, liabilities, and stockholder’s equity as of report date. The income statement reflects the company’s operations and financial activities through revenues, expenses, losses, and gains. The statement of cash flows displays the changes in the company’s cash flow during a given period.

Exit Strategy. An exit strategy is a strategic plan, which provides reliable means for an entrepreneur to minimize business losses. It involves the selling of the entrepreneur's ownership to another company or Angel investors. Various factors are considered when deciding on which exit strategy to choose (Hawkey, 2017). For instance, the elements may include; the level of involvement or control an entrepreneur wants to hold in the business, whether he expects the industry to operate sustainably in a similar manner as before.

We have therefore chosen the initial public offerings as the best exit strategy for the beauty industry. An initial public offering is a process which involves offering the public a private corporation's shares through stock issuance (Hawkey, 2017). The open share issuance enables the beauty industry to generate capital through investors. The beauty industry is interested in the initial public offerings has ideally chosen underwriters. The sector has also selected an exchange through which shares will be offered consequently traded in public (Hawkey, 2017). Besides, business valuation is the primary aspect regarding an exit strategy. Based on this, the industry has therefore selected the specialists who will assist in investigating its financials to establish a fair value. An initial public offering is the best strategy because it enables the company to generate enough capital, which promotes its growth and expansion. The beauty industry will, therefore, expand and grow effectively while employing this exit strategy.

Conclusion

In looking for funding for your business you may want to look into angel investors for funding of your product/business. Have your elevator speech on hand so you can explain your product/business in two minutes to gain the investor's interest. Have your financial statements together and be able to explain how your product/business will generate revenue through your financial statements. If your business isn’t doing well, you could minimize the loss by selling the entrepreneur’s ownership to another company or get sold to an angel investor who, if the potential is still there, can help you get a better perspective and help your product/business to succeed.

References

Burns, R. E. (2016). The Vital Importance of the Elevator Speech. Bridgewater Review, 35(2), 33-34.

Hawkey, J. (2017). Exit Strategy Planning: Grooming your business for sale or succession. Routledge.

Financial Statements. (2018). Retrieved from https://www.accountingtools.com/articles/2017/5/10/financial-statements