EntrepreneurshipGrowth

The Reality About Getting Investment

  1. Know your business sector really well. If you are a technologist, hook up with a businessperson who knows the money side of the business. What are reasonable gross margins for your sector of the industry? What are the typical sales cycle like? What is a reasonable pricing and delivery model? What kind of investment is really needed to get the company to positive cash flow and profitability? These details are covered in the b-plan, but you need to be able to summarize stuff like this in your presentation.
  2. Don’t get discouraged. Most successful authors don’t strike gold on their first attempt, and most successful business people don’t raise the money they need on the first meeting.
  3. You may think of it as a check in the mail, but it’s more realistic to think of it as your in-laws moving in. It’s not just money; it’s a relationship.
  4. Step one gloss over a critical piece of this process that being it is essential that you have the proper contacts. VCs I have talked to in the past are quick to point out that they all but never invest in deals wherein the entrepreneurs cold-call them. Cultivate relationships with people who can get you introductions to the proper partner at the proper VC.
  5. The less you need the money, the more of your business you will get to keep. It’s that simple.
  6. Partnerships with reputable organizations show that your biz-dev. dude has the kind of Rolodex to get the job done. Always a plus.
  7. Use investment portals to your advantage. GetCapital.org is a great resource for connecting entrepreneurs with investors.
  8. Know your customer really well. Your customer is your revenue. Your business means nothing without revenue. To be sure, you must also be profitable but profits start with revenue. I have seen folks use a single slide to set the stage for a day in the life of their customer to tee up the problem being solved. This kind of market awareness says that you understand your customer, have walked a mile in her shoes, and have developed a solution to a genuine problem.
  9. Listen. Sometimes, investors who turn you down have valuable comments to make that can help you.
  10. Like step 5 says: Nothing beats a big P.O. when pitching the value of an idea
Tags

Anthony Ansong

Ceo - Ansong Holdings LLC Co-Founder & Editor Light Magazine Africa Author of Children Book Entrepreneur

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Back to top button
Close
%d bloggers like this: