Welcome to another edition of our moment of motivation, today we are going to be looking at some aspects of our daily routine as it relates to us and business world.
You have letters of intent, letters of endorsement and some high-powered personal references. Your powerpoint presentation is professional. You're getting in front of people who have lots of money, but no one is ready to give out a dime.
If this sounds like your situation, you're definitely not alone! Raising capital is not an easy task. It often takes more than just numbers and a slick sales pitch to win investors over.
Here are some less obvious observations that may be causing you to have a challenge:
You're Not Passionate About Your Business
People can tell when you're just going through the motions. It doesn't matter if the numbers show a huge financial windfall for potential investors. Many people want to see the fire in your eyes before they write the cheques.
You're Passionate About Your Business, But It Is Not Being Conveyed Strongly Enough
This could happen for several reasons. May be you've rehearsed your pitch so much that it sounds canned. May be you are so anxious to get the money that you come across. It may be as simple as trying so hard to be professional that you hide your excitement about what you're doing. Let loose, have fun, and let your excitement
Your Team Is Not As Strong As It Needs To Be
Do you or someone else on your team have extensive experience in your industry? Do you have a chief financial officer who knows how to protect your investor's money? Are your legal documents drawn up by experts in their respective fields of law? Be sure that you have covered all of your bases and left nothing to chance.
You Aren't Presenting Your
For example, people in your industry are not always the best people to approach. This may be because they know the real risk involved in what you're planning, or perhaps because they are constantly presented with safer, more secure investments. If there is a "mission" driving your company, such as saving the environment, it might be best to look for people who buy into that mission, regardless of whatever industry they are in. On the other hand, depending on your industry, people in it might be your most willing investors. This is especially true if they have contacts or resources that can help you be successful, or if your success will somehow improve their bottom line.
Friends And Family Are Often Hard To Sell
This might be because they know all of the "dirt" on you from years past. They might be familiar with other risks you've taken that failed for one reason or another. They may have trouble seeing you as the CEO of a billion naira company. Don't take it personally. It is just human nature. Seek out people who will respect you for what you are doing now!
You Lack Convincing Power
This may be your lack of confidence in your ability to take the company to great heights, or just your nervousness in making the presentation. You not only have to convince prospective investors that the company and the plan are solid, but that you are also the right person to lead it. If you are not the right person to fill the CEO position, find someone else who is. Just remember that no one is going to have the same kind of ownership mentality that you do.
Something You Are Doing Or Have Done Is Out Of Sequence
Building or growing a business requires adhering to a proven formula. Experienced businesspeople and investors know this. They know the formula as well. Changing some things in that formula is like frosting a cake before you bake it. The result can be a mess that is either difficult or impossible to clean up. Be sure that you are doing everything in the right order so that you maximize your chances for success.
You Haven't Taken Enough Of The Risk Out Of The Venture, Or At Least Shown How You Plan To Do So
The primary job of an investor is to assess risks. If an investor sees that you've put safeguards in place to protect their investment, such as protecting your intellectual property or building a strong executive team, they will be more inclined to invest. At the very least, show how you plan on using their money to minimize risks and protect their investments as much as possible.
Your Timing Is Off
You may be trying to enter an industry that is about to undergo radical changes that will leave you in the dust. You may be approaching real estate investors just as that market is hitting rock bottom.
You're Relying Too Much On Your Own Knowledge, Skills And Talents, And Not Enough On Those Of Your Team
Your inexperience shows. Be sure to emphasize how teachable you are. Tout your desire and ability to surround yourself with people who are wiser, smarter or more experienced than you are.
Your Original Ideas Are Either Not Protected, Or Not Protectable
Many investors won't put large amounts of money into an invention that is not already patented, though you can often get seed capital to pay for the patent application. There may be doubt as to whether or not that your idea is unique enough to be protected. Be sure to consult with an intellectual property attorney and get their opinion about protecting your idea in writing.
You Have Not Done Enough Market Research
There may be questions about whether enough people will want your product or service, whether your price point will be too high to be accepted by consumers, whether your competition has the market locked up etc. Be sure that you have done a thorough market study, you have documented results, and you have developed a strong and feasible marketing plan.
Master the delicate balance between confident businessperson, passionate owner, capable leader and masterful presenter, and you will greatly increase your chances of attracting investors.
You will succeed!
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