Fundraising is an important part of the development process for many companies. Without fundraising, it would be tough for many companies to reach their goals. However, before starting the fundraising process, there are some factors that companies must take into consideration. With that said, here are 5 things that you should be aware of before starting the fundraising process.
Look At Your Market
There are questions that you should look at before starting the fundraising process. Think about what the benefits of your product are. Look at the size of the market that you are trying to get into. Think about your customers and who your product will primarily appeal to. A critical part of every business is finding a problem and thinking of a way to solve it. This is something that investors look at. Your product or service should be in demand; if not, no one will support it. That’s why it is important that your business enter a market where it can succeed.
Audience is Important
Know the people to whom you are pitching your investment opportunity. If you can get a clear understanding of the audience, you will know how to structure your presentation to keep the audience excited and interested. Impact investors are looking for organizations, entities, or ventures that will make a social impact. These investors are looking for a high social return on investment. Financial investors are looking at capital returns. Then there is also a mixture of the two, known as the hybrid investor. This type of investor believes that it is possible to make a social impact and also secure financial gains. Analyze these investors, and have three different versions of your presentation ready depending on what type of investors you are meeting with.
Know The Numbers
Have all of the key performance indicators of your company memorized. You should be able to explain what affects and drives them. If you are not aware of your company’s key performance indicators, then it will be difficult for anyone to invest in your company. You have to understand the numbers around your business, market, industry, customers, products and operations. This will help you develop a strategy that can interest investors. If you can quickly simplify complex information, that will really get the attention of investors, especially because you don’t have a lot of time in a meeting to impress them.
Know Your Product Inside and Out
You have to be able to communicate your idea during the meeting in a clear manner. Do not make things more complicated than they need to be.
Learn How To Pitch
You cannot make a bad impression. Practice your technique through emails, do research, and manage your reputation. If a potential investor says no, do not get discouraged – just use it as an opportunity to improve. Constructive feedback is necessary for you and your company to develop and grow. Eventually you will make that perfect pitch to an investor.
Remember to relax and be prepared. As long as you are prepared and you have a great presentation that thoroughly outlines the company and its goals, you will be successful.