Your time spent in front of a potential backer is invaluable, and you do not want this opportunity to go to waste. For this reason, you want to put your best foot forward, and below are six steps to make sure you are leading with your best.
Tell A Great Story
It is no secret that today the brand story matters more than ever before. This is simply a narrative that is evocative of the emotions you wish to convey to your listener, and it should incorporate the reasons behind why you do what you do as a company.
You’ll want to make sure and use the proper elements of storytelling, even hiring someone to fine tune your approach if necessary. Your arc needs to show the potential for long-term growth, and you’ll need to keep your audience fully engaged and sympathetic with your angle at approaching a solution to a given problem.
Invest In Solid Talent
It is not unusual to see a startup on a shoestring budget who has skimped on beefing up their workforce in order to advance the mission. Even when your ideas are solid, you have to be prepared for the reality that these will often shift as your company grows.
You want to demonstrate that even if your staff measures few in number that you have the right people to do the job. A weak team will not inspire confidence, but a backer will be able to recognize when your workers have the grit and innovative spark needed to find creative answers to tough problems.
Invest In Yourself
The importance of the return on investment or ROI in the world of venture capital cannot be overstated. It is, unfortunately, the case that many businesses in their seed stage may misappropriate funding, leading to difficulty in repaying monies.
A great sign that you are worth the financial risk is when you take profits already earned and reinvest these back into the firm. This shows that you are betting on the long haul and that you know how to manage capital effectively.
When You Are A Good Match
A significant number of proposals are rejected simply because they fall outside the parameters of what a certain lender is poised to deal with. You can avoid this outcome by taking the time to thoroughly do your homework.
Look at past projects your prospective investors have taken on and dig to find out what their policies do and do not allow. The closer you can come to fitting their specifications, the more likely they will want to work with you.
Be Clear On Your Purpose
It can be exciting to receive a large amount of money at once, and venture capitalists are leery of the liabilities inherent to supplying revenue to an enterprise that has not explicitly thought through its game plan.
You will want a concise presentation that outlines your proposed allocations for your loan. This engenders trust on their end, and it helps gives you a roadmap to follow should your request be approved.
Expect to be asked questions during the meeting after you have stated your case, and study up on the intricacies of what you are pitching. Make sure your team members also know their stuff and can give a proper answer when put on the spot.
Make sure your responses are clear but that they also do not resort to oversimplifying complex issues. You also do not want your listener to be swimming in so much detail that they tune you out. Opt for a healthy balance of information that is informative yet engaging.
Fidelman & Co. specializes in management consulting, presentation advisory, and financial modeling. We focus on building businesses alongside entrepreneurs and investors. Contact us today for more information about what we can do for you.