It doesn’t have to be difficult to get through to an investor. If your company is good, it will be seen. If your product is good, it will be tested. But as every investor knows, their decision to fork out the dough hinges on the competence and knowledge of the company owner at hand. Here are three ways to successfully raise capital for your early-stage growth company.
1. Make Sure Your Business Plans and Marketing are Solid
This is probably the most important point of all. To have a clear and concise business and marketing plan means you understand the exact nature of your business and what it’s trying to achieve. If you know this, the investor can too. Have a solid plan about your leadership dynamic and how you plan to scale it. These are crucial points that investors will sink their teeth into.
2. Know Everything About Your Industry
Know your industry with all of its nuances. Simply put, investors do not have the time or patience to put in this kind of leg work for you – the more you know, the better. If you are able to show investors that you know more than your competitors, that will surely go a long way in the decision making. It’s amazing what a little research can do. Delve into the history of your industry and look for patterns of success and failure.
3. Perfect the Pitch
Honesty is the best policy. It’s cliché, but it’s the truth in this case. Many deals have fallen through after due-diligence. When you pitch, be sure to cover the who, what, when, where, why and how. It’s an easy exercise to execute on paper, but do your best to have it flow nicely when speaking. There will be questions, so be ready. Again, know as much as you can about your competitors.