ASPECTS TO MASTER BEFORE ASKING FOR FUNDING.
The competition is getting stiff; investors are holding onto their pocketbooks as many options to invest flood the market. Investors are also sharing how they are more hesitant to invest because they are not seeing any return on money for startups that don’t have significant traction, ventures that didn’t make it, or ones hanging on by a thread.
It will take an incredible idea, a killer team, and mastering these 5 Aspects before you ask for funding and to capture attention.
#1 Clear Value Add for Customer. If there is not a clear, real value for the customer, getting them engaged and keeping them for the long run will be an uphill battle. Mastering the Value add and hitting home the Problem/Solution combo and how your App is going to make a real difference for someone, you’ll jump ahead of the pack.
#2 Does your App Simplify Life & Easy to Understand? When it comes down to it, some people want easy and simple; they don’t want anything that makes life complicated. Think of the “Easy” button and whether your App falls into that category? When things get complicated, people usually won’t use it. It’s that simple.
#3 Team Works Great Together & Open to Suggestions. Almost every investor we’ve spoken with is looking at the team as the #1 investable asset of a company, not just the idea. Remember, they view it as a business commitment, a “marriage,” and they want to know you and your team will be a good fit for them. Most of the time, investors are looking for a coachable team, who is in sync with each other, open, enjoyable to work with, and want to have dinner with on a social level. If you are not willing to be open, take suggestions, or always on defense, they can smell it a mile away. We suggest asking those you work with and close friends what you can improve on, maybe do some self-work through workshops or reading, etc. You might get one chance to impress and connect, so listen first and then talk.
#4 You have Paying Customers or Customers Willing to Pay. Money talks. If your App, business, or venture has paying customers, one of two things can happen; you may not need an investment, or you have negotiating power. When you can show evidence of money made and projections based on clients, users, and company experience, your idea is now real and a fundable option.
#5 Clear Engagement/Re-Engagement Strategy. It’s one thing to have 100 paying clients, and it’s another for the potential to have millions. You’ll want to master the skill of acquiring new customers and generating leads with a clear plan of action on how to do it. Remember that it takes a lot of effort to gain a new customer, and it is worthwhile to re-engage with customers that downloaded your App and maybe not using it or not using it regularly. If you are “on it” in both areas with an action plan, your mastery of this will only get better, which investors can see what has been done, what is being done, and what will be done. Results are Powerful.
Now it’s up to you to master these 5 Aspects or work with our 100×100 Launchpad Team, so you’re learning these five throughout the Launchpad Process. Unique to 100×100, we offer a personal Demo Day for our startups after they’ve acquired 100 Users with 3-5 investors that are interested in their industry or type of platform. We also work with our founders to have an eye-catching Pitch Deck and Coaching to go along with it. If you plan to go it alone, at least master the five aspects shared, and we wish you all the best in your funding endeavors.
Startup Coach & Ideation Specialist,