In every business deal, setting the right and first impression matters. So imagine how important it is to be convincing and assertive when you apply for venture funding.
Applying for business funds banks is something that every entrepreneur should take seriously, as everything that follows will depend on this. It will determine how many resources you are going to have to properly start and establish your business operations.
Therefore, you should think of it as a now-or-never kind of opportunity, and to help you start, here are some helpful tips when preparing for your capital funding business pitch.
Less is more
When writing your business pitch, you should keep in mind that these people have seen and heard about dozens of business proposals. Their minds should be somewhere between “Let’s get to the bottom of it.” and “What makes your business worth funding?” Therefore, you should be concise and accurate with every detail that you need your investors to focus on. Avoid writing or creating presentation slides that have chunks of paragraphs, as it will only result in disinterest.
Maximize using graphic elements, tables, charts, and bullet points to emphasize what you need to say. Lastly, remember that in these cases, less is more. Your investors will appreciate it better than flooding them with words, jargon even, that they would not be able to comprehend during your appointment.
Always prepare a backup plan
In business, it is important to have a drawback plan. It is something that you and your organization can do should things go down south. As investors, these people will need some sense of security and assurance. You should not only present your business proposal and operation plans but also what you would do if things do not turn out the way you hope.
There are business proposals that already include franchise opportunities as their backup plan, especially for manufacturing and food-natured businesses. It is a well-thought-out plan as well because it is also an opportunity to expand, reach more markets, and even save a sinking ship. Hence, remember to include a concrete backup business plan in your proposal presentation, and investors will likely fund a business with multiple layers of protection.
Find an economic gap
This item is more about conceptualizing a good business proposal. Sure, you want to start a business, but from an investor’s point of view, what would be the point of funding a business that is just a clone of other brands out there? Even with your unique selling points (USPs), it is always better to be the first to target a specific and open niche.
Finding an economic gap means months or years of research to learn what you demand is yet to be supplied and what you can offer the consumers. Just take the streaming service giant Netflix, and how it revolutionized the overall viewing experience for consumers. It almost took the Bluray kingdom out of the equation with the variety of content a subscription has.
Sure, Netflix did not start as an ideal and shining service, but it was one of the first ones to plant its banner in the streaming service niche. Look how great it turned out to be for them. Today, bigger companies such as Apple and Disney are all scrambling after the independent companies to launch their platforms. A couple of years ago, Disney pulled all of its copyrighted movies and shows from Netflix to provide exclusive content on Disney+.
Emphasize your team’s qualifications as well
One last important note to remember is that investors also need to know who would be the people running the business they would fund. Including your core team’s qualifications and skills in your business proposal is a tremendous green flag as it establishes trust and credibility. You are letting your investors know that their money will be in good and able hands.
Although you do not have to include almost everyone, just the important people who will be making decisions with you should the business proposal come to fruition. It will even be better if they are present with you throughout the business proposal appointment to prove they are more than just words printed out on paper.
Business proposals should not be hit or miss, but there will be times that it will turn out that way. No one wants to start horribly, as that could cause a huge blow to the team’s morale, but whatever happens, remember that a well-thought-out proposal never goes wrong.
