Business Accounter

Sunday, January 11, 2009

How To Pitch To Investors

Companies preparing to meet with investors can improve their odds of raising capital by creating a compelling story and pitching that story to investors.The goal of the pitch is not what you might think.The goal is to peak the investor's interest to learn more.

Focus on the most important points on your business model for the time you have such as the problem, the solution, market size, customers, sales cycle, barriers to entry, IP protection, competition, partners, joint ventures, management, advisory board, financials, uses of funds, and the offer.Take your time to make sure you are clear and understandable to the investors.

Entrepreneurs messaging should articulate their unique value proposition about their target market on how the investor will get a "pay raise" by choosing to invest.The message should be tailored to the investment audience.

-Investors that are in the "business of investing" look for reasons not to invest so they can narrow down the deals they will examine if the company has:


-Incomplete financials and/or business plan


-Complex or confusing message on business model or investment opportunity


-Structure of the offering, relative to a high valuation, unclear exit or return to the investor


-Inexperience or incomplete management team and/or attitude of the management


-A specific industry focus or niche marketplace


Companies often have third parties review their business model documents like the business plan, financials, and offering to:


Identify and examine your market opportunity, your company's role in that market, your competitive and market analysis


- Evaluate your proof of concept and validation of your product or service


- Verify your business has clear business objectives and milestones for financial, sales, customer database, internal organization, and employees


- Identify your business strategies for growth, infrastructure, and development for financial accounting and human resources


- Check for any fatal flaws in your plan that would keep an investor from investing


- Appraise that your concepts are in clear and concise terms that an investor will understand


- Determine if your revenue and financial model makes sense for your business model


- Assess your plan from the investor's point of view, the ability to attract capital at the best value, and meet the expectations of professional investors and lenders.

Companies need a reality check when raising capital.It costs time and money to raise money.

Entrepreneurs must plan accordingly.You can spend a lot of time identifying, scheduling, meeting with each investor and following up and following through.This involves potentially hundreds of meetings and getting a lot of .It is very difficult to raise a lot of money, in a timely manner, and run and manage a fast growing early stage company.

Often entrepreneurs hire an investment banking firm, broker dealer, or professional services firm in that business to help them manage the investment raise process, which costs money.The seed round should be done on your own; with investors you know or have direct access to, without paying any fees.

Once you are beyond their seed round, you need to adopt strategies that will put you in front of hundreds of investors over a reasonable amount of time.This includes participating in business plan competitions, investor forums, and as many opportunities as possible to "pitch" to investors.

There are fees associated with putting these events on and therefore a cost should be anticipated and budgeted for in raising millions of dollars.Entrepreneurs should only pay to present to a group of investors after they have raised a seed round and need access to a new larger pool of potential investors that are savvy about high growth opportunities.

Whether you are seeking $100,000 or $1,000,000, a structured offering should be based on solid inputs from the business model to establish the value of the stock and how much investors will get for their investment.

Documents must be signed and entrepreneurs must establish a legal protocol for collecting the money.That protocol can include a Private Placement Memorandum (PPM), Subscription or Stockholder agreements.These documents explain the opportunity, the risks, and have an investor questionnaire to validate the investor has enough wealth to make the investment.


About the Author

"Where Qualified Investors and Capital Connect with Innovative Companies".

Network of Business Angels Investors (http://nbai.net), and NBAI Private Equity Investor Forums."How to Pitch to Investors" free webinars at http://findinvestorcapital.com and more info at www.launchfn.com


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Tuesday, October 7, 2008

12 Tips For Your Product Funnel

When creating products to sell through your Internet business it can be confusing. What products come first and what comes next What is your product funnel What is the first thing that a customer would buy or download in your niche Keep answering these questions until you have created your own product funnel.

Lets look at the product funnel more closely,
1. Have a free or inexpensive product such as downloadable pdf, CD, or audio. You give this away to show your customer that you have valuable information.
2. Products that range 10-40 of better quality.
3. Products that range 100+.
4. Products that range 100 to 500 such as a small course.
5. Products that ranges 500 to 1,000 such as a course.
6. Products that range 1,000+ such as personal coaching and mentoring.

Remember as the price goes up, your brand characteristic should go up.

Make Research:
1. Do competitive psychotherapy to find whats absent in the marketplace.

2. Find for weaknesses in your game.

3. Brainstorm proposal to obtain out anything employees demanded, not what they hunger.
Recall, staff dont regularly fathom anything they desire. You desire to discern the change between whatever they want and whatsoever they desire. Put up for sale staff what they requested and deliver people what on earth they hunger. There calls for to be a tie-in between these two.

4. Whatsoever can you come up plus that is new and will resolve your buyers complications Obtain new and beneficial ways to be a problem solver. Use your knowledge to create these new rejoinder.

5. Your type can suffer a curtest existence span or be an evergreen class. Software products have a tendency to be evergreen products. They are evergreen because they are updated always, but the initial brand remains the equal.

6. Investigation blogs, social sites, and forums to see what on earth subjects and products are becoming ordinary. To capture forums in your niche go to Google and variety in yourniche forums.

7. Search Clickbank.com, associateprograms.com, pay.com.com to capture merchandises in your niche. These online pages will skill digital announcement wareses in your niche.

8. Buy goods that are not doing anyhow and rebrand each other. You can obtain exclusive deepest label rights so you and the owner of the brand are the easily recruits that can market it the variety. So you can revamp the style and sell it. Class assured that you pass through a holdings for the deepest label rights.

9. Look for private label wareses, drag one another apart, and call for it into your brand. You dont experience to reinvent the wheel.

10. Leverage the competition. Obtain equals wareses to see what on earth they style and how they deliver it. Appraise the benefits and limitations of your equals, merchandises. Subsequently create your own type that certainly utilizes the benefits. You can similarly show out to your clientele that you experience a superior make.

11. Motivate your reward point. Broad prize points are 9.97 and 19.97. Determine your bounty by discovering what on earth your equals are merchandising a akin type for or you can conclude the scrutinize of the make yourself. It is up to you. For instance, you can say that your brand expenses a good deal of additional because it is a significantly higher feature type.

12. Compete along furthermore your competitions on benefits and qualities. Dont try to provide the lowest price.


Almost about the Inventor

There are a few strategies to making capital riches on the internet, but naught makes identify except you meet up with a big plan. Electronic mail Sales promotion is the Some profitable way to class change on the web. Perceive how to use the cyber web and circle your robot into a money gushing appliance. Inkling-up appropriately now for Matt Bacaks Absolved surf the net newsletter to obtain out how to do exactly that, Go here:

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