You want to invest.
You need clarity.
You need a decision memo.
You need self-pitch framework.
Investment decision memo. Self-pitch template. Clarity framework. Your decision.
This guide shows you how.
Memo structure. Investment analysis. Decision framework. Your clarity.
Read this. Build memo. Make decision.
Key Takeaways
- Calculate all metrics—use NPV, IRR, ROI, and DCF calculators to get complete financial picture
- Document opportunity—clearly describe what you're investing in and why
- Assess risk—honestly evaluate risks and how you'll manage them
- Justify investment—explain why this investment makes sense now
- Make decision—use memo to force clear go/no-go decision
Table of Contents
Why Memo Matters
Memo forces clarity.
What happens without memo:
- Decisions are emotional
- Analysis is incomplete
- Mistakes are made
- Capital is wasted
What happens with memo:
- Decisions are rational
- Analysis is complete
- Mistakes are avoided
- Capital is protected
The reality: Memo enables smart decisions.
Calculating Metrics
Calculate all key metrics:
Calculate NPV
Calculate it:
- Use our Net Present Value Calculator
- Enter investment details
- See NPV result
- Document in memo
Why it matters: NPV shows value creation.
Calculate IRR
Calculate it:
- Use our Internal Rate of Return Calculator
- Enter cash flows
- See IRR percentage
- Document in memo
Why it matters: IRR shows return rate.
Calculate ROI
Calculate it:
- Use our ROI Calculator
- Enter investment and return
- See ROI percentage
- Document in memo
Why it matters: ROI shows return percentage.
Calculate DCF
Calculate it:
- Use our DCF Calculator
- Enter cash flow projections
- See present value
- Document in memo
Why it matters: DCF shows true value.
Pro tip: Calculate all metrics. NPV, IRR, ROI, DCF. Document all in memo. See our 360° investment view guide for comprehensive analysis.
Documenting Opportunity
Document the opportunity clearly:
What You’re Investing In
What to document:
- Clear description
- Business model
- Market opportunity
- Competitive position
Why it matters: Documentation enables evaluation.
Why It’s Attractive
What to document:
- Key strengths
- Unique advantages
- Growth potential
- Strategic fit
Why it matters: Documentation shows rationale.
Expected Outcomes
What to document:
- Revenue projections
- Growth expectations
- Strategic benefits
- Timeline
Why it matters: Documentation shows vision.
Pro tip: Document opportunity. What, why, expected outcomes. Clear documentation enables evaluation.
Assessing Risk
Assess risk honestly:
Identify Risks
What risks to identify:
- Market risks
- Execution risks
- Financial risks
- Competitive risks
Why it matters: Risk identification enables management.
Evaluate Risk Level
What level to evaluate:
- Low, medium, high
- Probability of risks
- Impact of risks
- Risk-return balance
Why it matters: Risk evaluation enables decision.
Risk Mitigation
What mitigation to plan:
- How to reduce risks
- Contingency plans
- Exit strategies
- Risk monitoring
Why it matters: Risk mitigation protects capital.
Pro tip: Assess risk. Identify risks, evaluate level, plan mitigation. Honest assessment enables smart decisions.
Justifying Investment
Justify why investment makes sense:
Strategic Justification
What to justify:
- Strategic fit
- Business alignment
- Growth opportunity
- Competitive advantage
Why it matters: Strategic justification shows purpose.
Financial Justification
What to justify:
- Positive NPV
- Good IRR
- Strong ROI
- Value creation
Why it matters: Financial justification shows value.
Timing Justification
What to justify:
- Why now
- Market timing
- Business readiness
- Opportunity window
Why it matters: Timing justification shows urgency.
Pro tip: Justify investment. Strategic, financial, timing. Clear justification enables decision.
Making Decision
Use memo to make decision:
Review All Sections
What to review:
- All metrics
- Opportunity description
- Risk assessment
- Justification
Why it matters: Complete review enables decision.
Force Go/No-Go
What decision to make:
- Clear go decision
- Clear no decision
- Conditional go
- Defer decision
Why it matters: Clear decision enables action.
Document Decision
What to document:
- Final decision
- Reasoning
- Conditions
- Next steps
Why it matters: Documentation enables accountability.
Pro tip: Make decision. Review all sections, force go/no-go, document decision. Memo enables clarity.
Your Next Steps
Calculate metrics. Build memo. Make decision.
This Week:
- Review this guide
- Calculate all key metrics
- Start building decision memo
- Document opportunity
This Month:
- Complete decision memo
- Assess all risks
- Justify investment
- Make final decision
Going Forward:
- Use memo for all investments
- Refine template over time
- Improve decision-making
- Protect capital
Need help? Check out our Net Present Value Calculator for NPV calculation, our Internal Rate of Return Calculator for IRR calculation, our ROI Calculator for ROI calculation, our DCF Calculator for valuation, and our 360° investment view guide for comprehensive analysis.
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Sources & Additional Information
This guide provides general information about investment decision memos. Your specific situation may require different considerations.
For NPV calculation, see our Net Present Value Calculator.
For IRR calculation, see our Internal Rate of Return Calculator.
For ROI calculation, see our ROI Calculator.
For DCF valuation, see our DCF Calculator.
Consult with professionals for advice specific to your situation.
