On the heels of our highly acclaimed debut video, WealthNet Partners met in collaboration with Hepnova once again to bring you a back to basics video on how to raise money from angel investors.  Hint: you need a professional business plan.

If you can’t have sound at the moment, read the transcript below.

Hello I’m Nicholas DiBiase From Hepnova

Noah Dyer with WealthNet Partners.

We’re here for Advisor Garage and TheFundingGuru.com

Today we’re bringing you a skit to help you raise money.  The idea is that if you give investors what they want in the form of pitching to them what they want to hear, they will let you take their money, or rather give an investment in your business.  And with that in mind, I’ll be playing in this skit a seasoned and wise angel investor.

I’ll be playing the brash young entrepreneur, and demonstrating five common pitfalls that young entrepreneurs can fall into while pitching.

Nicholas, thanks for coming in today.  I’m really excited to hear about this opportunity.

Noah, real happy to be here.  Let me hip you to what’s happening: Social. Media. Magic.  BAM!

Wow… it sounds exciting.  You know what, I didn’t get a business plan earlier.  Did you happen to bring one with you today?

We don’t need a business plan for this.

OK.  Why is that?

Because this represents truly disruptive technology.  It is going to level the playing field and blow everyone else out of the water!

Sounds exciting, and speaking of blowing people out of the water, who are your competitors?

We’ll, really we don’t have any competition, because nobody else has configured the features of twitter , facebook, myspace and Walmart into a single application.

Wow, from facebook to Wal-Mart… that’s a pretty big field.  What problem exactly is your application solving.

Well see Our application has got more whosawhatsits, more flibbertywidgeths, more PHP doohickies, and more Ruby on Rails hozzlewatzits.

Ok.  Well, I’ll be honest with you that’s all over my head.  I wouldn’t know how to run a business like that.  I’m curious, who else is on your management team to help you run the business.

Well, the management team is going to be me… myself, and I.  Ha ha!

Oh, that’s good.  And what experience do you have competing against giants like facebook and Wal-Mart.

Well, for the lats 6 years I’ve been living in my parent’s basement eating Doritos for breakfast, but this is going to change everything!

Yes, I can tell that you would like it to be that way.  I’ll tell you what, usually I’d say that I’ll review your business plan, but since I don’t  have one, I will mull over the things that you’ve shared with me today and if we’re interested I’ll  get back in touch with you.

Or you could just write me the check right now.

Or you could just leave…. All right, so again the 5 pitfalls that we illustrate in this video are: First, not feeling the need to prepare a formal business plan.  Secondly, using the buzz phrase disruptive technology as an excuse for doing that.  Third, not doing a compitive analysis and realizing who your competitors are.  Fourth, not framing your business in terms of the problem it solves, but instead focusing on the features it brings to the table.  And lastly, not justifying and forming a solid management team.

That’s right!  As entrepreneurs sometimes we have to let go of the egoistic preconceptions that we have about how are business should be pitched, and instead  play on the playing field that the investor wants to inhabit.

Absolutely, so my name’s Noah Dyer.  Again I’m with WealthNet Partners.

Nicholas DiBiase from Hepnova.  We want to give a special shout out to Andrew Ive, the Funding guru, and to Marty Zwilling for his education on this topic.  We hope you’ve enjoyed and been able to glean some insight from this video.  And have a fantastic safe, and productive week.

Absolutely!  Take care, and good luck funding your business.

Rock on…. Let’s get out of here.

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