Any potential investor wants to see a highly readable and credible business plan with a summary, finance and management team overview, but after submitting their plan, many people think funding will come when it may actually take time. By following the steps below, you will be able to avoid some of the most obvious mistakes when raising funds for your project.
One: if you are a company that has brilliant technical knowledge and no real sales experience, don’t advertise. The information on your website, including management team biographies, will clearly indicate the background of the management teams, including their technical expertise, titles, patents and the like, but surprisingly, their go-to-market strategy in the business plan. it is usually incomplete and sometimes missing. The solution, make sure you have a credible marketing strategy with a credible sales leader. No one will invest if you don’t.
Two: make sure your website is impressive. Too many companies think that running a business is all about the product and the skills of the technical team; frankly, it is not. This may be true, but investors today will always expect to see more. They want to be convinced and when they go directly to your website, they want to be wowed! Unfortunately, many people offer what seems more like a school project. Make sure your website is absolutely brilliant and doesn’t look cheap. Ask a variety of people if it looks modern, if it looks attractive, particularly the photos, and ask if it’s easy to navigate. Also, make sure it’s relevant; It’s not about how wonderful it is, but how you and your company will solve its challenges.
Three: If you are raising money through a prospect or private listing, make sure your brochure stacks up. Many people don’t put enough time and effort into the visual appeal of a private listing brochure, and again you don’t want to provide a substandard document that will fail on every level. Spend some time and money to make sure your messages get across in a professional, crisp, and business-like manner, and that they are logical and easy to read. Also, don’t use unverifiable random facts; be sure to back up everything you claim will be possible with the latest research etc.
Four: don’t use jargon. Anyone who goes to your site or takes a look at any promotional material designed to answer questions will not put up with jargon that usually means nothing to them. If you must use jargon or acronyms, make sure there is an explanation – people will not ask that they will vote with their feet! A well-written website and brochure are music to potential investors’ ears.
Five: Make sure your website and all other materials have the same font. Make sure the supporting marketing material looks good and make sure the stories you tell are verifiable and relevant. Lastly, don’t be controversial. People will decide on quality and this includes looks, the overall professional approach. If you can use suitable references, form suitable companies. Don’t add something just for the sake of adding something, it has to be contextual and relevant!
Follow these tips and life on the fundraising road will be a lot easier.