The opinions expressed by (*6*) authors are their very own.
Securing financing is no walk in the park. From preparing an offer to planning a strategy for what happens when you are taking a risk, it could possibly sometimes be overwhelming. Investors receive countless offers every minute, which makes it difficult get noticed and ultimately secure financing.
Having run a business for over twenty years, I’ve learned a lot from pursuing what I think will work for me versus what actually works for me and my agency.
Like most aspiring business owners, my first thought was, “What should I put in my presentation?” That was until I noticed that building real relationships with investors was what needed to be at the top of my checklist.
I have found that girls entrepreneurs especially have to leverage their unique perspectives and strengths to secure the funding they should grow and innovate. This means highlighting our unique insights and showing how our diverse approaches can result in significant advancements in the marketplace.
Considering all the trials and tribulations I have undergone to maintain my business thriving and recognized, I have prepared six strategies for you that are effective in securing financing.
1. Simplify your presentation
Your presentation is your first impression. It have to be compelling, concise, and easy to grasp by a diverse audience, even a fifth grader. Avoid using jargon and overly complicated terminology.
Investors don’t have time to go looking through a dictionary to grasp your message. They expect clear, realistic results. Present your solution in plain language and highlight its value and potential impact.
2. Match investor portfolios
Before you contact them, make sure you take a look at the enterprise capitalists’ (VC) investors’ existing portfolio corporations. Similarly, be clear about how your organization can replenish its investments.
Let’s say one of their corporations invested in a restaurant money register company, and your organization provides the software for those kiosks; focus on this synergy and highlight your value proposition. An investor will easily see that investing in your organization might be a sensible choice and that you just are potentially a good partner.
3. Understand the several types of investors
Take the time to learn and understand the differences between business angels, VC investors, family offices and private equity investors. Each type has unique goals and risk tolerance.
For example, an angel investor could also be more willing to take risks with early-stage startups. On the other hand, private equity firms focus more on finding established corporations. Be honest with yourself about why they need to do business with you.
4. Treat fundraising like a sale
Approach fundraising with the same rigor as sales. Set each day limits for reaching potential investors via email, LinkedIn and phone calls. Massive and consistent outreach practices increase your probabilities of finding the right investor. Personal anecdotes could be powerful; for example, a client who eventually became a unicorn managed to lift his first million dollars primarily through LinkedIn alone.
5. Emphasize resilience and learning
Investors want to grasp the way you deal with adversity. Every company, especially start-ups, focuses on the ultimate goal – success – and normally fails to note the obstacles they’ll encounter along the way. But investors aren’t interested in these obstacles themselves; they wish to know the way you are capable of overcome challenges and learn lessons.
Explain the way you have dealt with extreme stress in the past and what support chances are you’ll need in similar situations. Failure to deal with this issue leaves the investor with a big query mark and may simply pass you by because you didn’t have enough business knowledge to appreciate how essential this discussion is.
6. Look for experienced and connected investors
Join investors who bring greater than just money. Turn to people with extensive experience and networks in exactly the same industry you use in. When I used to be raising capital for agency acquisitions, I targeted individuals who had extensive experience acquiring agencies 1,000 times my size and those that had worked with my specific audience. At first it could look like it’s just money you will need, but their expertise might be invaluable and they might be true partners in your development.
Securing financing could be an arduous and sometimes frustrating endeavor. But once you understand how you’ll be able to get on the “shortlist” in the queue – with proper preparation, clear communication and solid networking – you will definitely feel satisfied.
Don’t randomly throw out offers with long and complicated content. Instead, take the time to grasp your audience and investors and tailor your offering to their interests and needs. Remember to prioritize what aligns with your goals.
Ultimately, start by building strong relationships, whether on social media platforms or in person. You will see a huge impact on your online business. These insights have helped me greatly in scaling, not only in terms of funding, but also in terms of business skills and market positioning, and I can not wait for yours to make the breakthrough!