Have you been wondering why investors are saying no to your start-up or why you cannot seem to raise enough capital for your business capital, then maybe you need to go back to the drawing board and review your pitch. You might be missing some important factors.
As a start-up, it is common to make a few slips here and there whilst building your business- you are new in the industry and you bound to make mistakes on the grounds that you have never done this before, it is unfamiliar to you.
Like a toddler learning to walk you fall and hurt yourself, however, after that unfortunate occurrence, you now know better, as a result, you do better.
You may be feeling discouraged and puzzled as to what do investors really want, what are they looking for in a potential investment or how to attract them to your business. Make sure that you get the important factors in your documentation right.
Basic things a start–up should include in a pitch:
If you are pitching your business plan to venture capitalists and potential investors you make sure that your executive summary captures their attention and gives them the motivation to read on beyond the first page. Firstly, understand the purpose of the executive summary is to briefly detail your business plan the investor is about to read.
Secondly, stipulate the good and services that the business provides to clients. What your business does and how long have you been operating. Be concise when identifying who your target market is. Investors want to know how big your market is and if your business is a good investment opportunity.
Management team- these are the people that are responsible for the execution of ideas and goals of the business venture. Investors want to know who they are and their roles in the business. Concisely lay out a list of all your business management personnel, including their previous experience and a brief summary of the skills they are offering in the start-up.
Financials- a summary of the company’s objectives- layout anticipated business and personnel costs and include all projections for sales for the past years of your business. The numbers must make senses. Potential investors want to know if your business is a good investment opportunity, be transparent to build trust.
Points to take home
- As a young entrepreneur, you must have a realistic business goal and a plan to meet that goal.
- If you lack practical business experience, consider employing the board of directors for advice and to help your business grow.
- Have a lawyer that handles all the business legalities
- Have an accountant that oversees the company’s financials
Apply the “The Grandmother test” in your business pitch where you make everything so simply and precise that even a grandmother would understand.
Uprise.Africa is a great online platform to showcase your business and get the funding that you need.
To start your fundraising campaign visit https://uprise.africa/login.
A qualified journalism alumna from the University of Johannesburg who’s passionate about writing and story-telling. She believes in social change, shifting the narrative around social behaviours and relations such as stereotyping, racism, and to live in a society where we can all be free to exercise our human rights.
Busisiwe lives by this famous quote by the great Nelson Mandela “It always seems impossible until it’s done”.