Four Important Rules of the Road

1. Don’t try to “fake it” with potential investors. These are sophisticated experts who have seen hundreds of road shows. They know how to separate the wheat from the chaff. Treat them with respect by preparing thoroughly for your presentation. This may well be the most important sales pitch you have ever given in your life.
                                                     
2. Don’t exaggerate or make statements you don’t have facts to prove. Some analysts will ask questions just to try to poke a hole in your presentation. Don’t fall for the trap. If you are asked to make an estimate, protect your credibility by making sure to give a conservative, believable estimate that you can back up with facts.

3. Don’t present information that is not included in your prospectus. This is a rule set by the SEC. The SEC also forbids giving specific financial forecasts or promises of future return on investment. Stick to the facts about your company’s past performance and your plans for the future.

4. Don’t try to hide the risk factors. Just as you were required by the SEC to inform investors of risk factors in your prospectus, you are required to do the same in your road show. No investment is ever risk free, and experienced investors know this. So face the risk factors squarely in the face and explain them to the audience, then move on to more positive information about your overall business plan.