As promised in a previous post, this is the first in a series of blogs…
They say you can’t judge a book by its cover… or maybe you can?
When you are looking for a new potential investor, the main thing to bear in mind is: first impressions are the most important. And that’s it. You won’t have a second opportunity to make a good impression with your potential business angel.
So you better be sure you bring your best game before entering the lion’s den.
The right attitude is not everything
That’s the point. You have had a really bright idea and you are sure it will be the invention of the century. That’s good, you already are well underway. Self-confidence and a strong belief in your project are essential elements when pitching yourself and your company to investors.
Tell them the story behind your idea, an anecdote about how you thought of it, how you developed it and so on – after all, we all remember about the tale of Newton and his apple. This will help them to remember you.
Last but not least, be realistic when you ask for money: don’t ask for too much because you could appear unrealistic but, at the same time, don’t underestimate the amount you really need to do things well.
Although the right attitude is a fundamental part of the pitch, that’s not enough. You will need a series of practical tools to promote your business and let your potential investors know you are ready for the challenge.
You now need a business model…
The first is important to demonstrate the economics behind your company. It shows how it creates value and profit thanks to all the factors that interact with it. One of the most popular business models today is Canvas, very useful and simple to define.
It shows in a schematic way the variables that contribute to the success of the business. These are listed below in a chronological order and also shown in the diagram (you can print and hang it up in your office, just like a dashboard):
- Key partners
- Key activities
- Key resources
- Value propositions
- Customer relationships
- Customer segments
- Cost structure
- Revenue streams
…and a startup business plan
With regards to your business plan, bear in mind it is very important for you, the entrepreneur, and also for potential angels! It describes your company in detail.
But what’s inside a business plan specifically? While there are several approaches regarding the right way to draft a business plan (very similar to each other), the following steps are the essential ones:
- Executive summary
- Market analysis
- Competitors analysis
- The company
- Marketing plan
- Operating plan
- Development plan
- The team
- Your offer
- Financial plan
If you’ve had a bright idea but you haven’t thought about all the marketing related part yet, drop us a line and we’ll help you to realise.