Angel investors who belong to groups such as the Utah Angels often hear investment presentations as a group once a month — and sometimes even more than that as individuals. With each presentation, thousands — even millions — of investment dollars are at stake. Which is why it is surprising to me how many of these presentations include the same mistakes.

1. No current financial statements. Forecasts are fine, but investors want to see what you have done with your money so far. A current balance sheet is an absolute necessity.
2. Hazy explanations of the hard dollars that have come into the company. Soft dollars, such as endless hours of your own labor, don't count.
3. No capitalization table that shows prior investors. We want to know how much they invested, what amount of common stock or other security they received for their money and what state or SEC exemption allowed the security to be issued.
4. Unrealistic valuation of the company. Few angel investors put much credence in forecasts. They want to see proven concepts with real sales. Don't claim valuation that you can't back up with hard numbers.
5. No independent market research or test markets. Research done by the company or its officers is basically worthless to investors. For research to have any value, it has to come from an independent source (you may wish to consider working with college students in marketing or market research classes).
6. Explaining the business in a complicated manner. You might impress us with how smart you sound, but we're not going to give you any money if we don't understand what you're talking about. Make sure we understand. Keep it simple — the simpler the better.
7. Handing out materials before the presentation. We can't help it — we'll start pawing through the literature instead of listening. Hand out your materials after the presentation.

8. Bringing a large team to the presentation made by only two or three people. Communicate your wise use of resources by bringing only what you need to the presentation.
9. Not knowing what type of investment vehicle to offer. Instead of offering preferred convertible stock, convertible bonds or at least common stock, presenters will say: "This is up for negotiation." When I hear that I know that the management group is not very sophisticated.
10. Not staying within the allotted time. True, this is sometimes the investor's fault, as he or she interrupts with questions. You should still ask if it's OK to go longer than scheduled.

On the positive side, here are 10 Steps to a Good Investment Presentation:

1. Thank investors for their time and attention.
2. Explain exactly what the company is looking for - the amount and type of notes, payments, stock options and shares. Everything.
3. Introduce the management team with a short mention of the background of each.
4. Explain the business in the simplest terms.
5. Define the market, including a brief analysis of the demand and competition.
6. Explain how the plan will be executed and who will be responsible.
7. Go through exit strategies and the return that investors should realistically expect.
8. Repeat step 2.
9. Thank them again for their time and ask for any questions.
10. Ask what to expect from the investors. When and how will you hear from them?