Statistics shows that a lot of entrepreneurs sprout every day, these new entrepreneurs and their startups need funding, a very high percentage of failed entrepreneurs blame their failure on insufficient funding.
Insufficient funds could be the general cause of failure, but lack of preparation and understanding is usually the root factor. While preparing to open up your business for investors and venture capitalists, it is important to note the following;
Person to Person relationship – Businesses must be built on a “person to person relationship”, businesses don’t buy businesses rather people buy businesses. Your business must be able to connect with its customers.
When speaking to investors, you must connect on a human to human level, no matter how revolutionary your product or business is, it cannot buy itself, investors must believe you are able to make the business grow.
Company Model over Business Plan – As important as the business plan is, investors would prefer to see a working model and not just a business plan. When sending out your business plan to investors, it is very important to include your business structure. A concrete business model shows how the company operates, its growth stage and rate, your business model should be self-explanatory and very easy to understand, no investor or VC would waste time trying to decipher your very complex business model. Make it simple but sophisticated.
Knowledge is Key – Approaching an investor with little or no knowledge about the business venture, the market and growth rate is as bad as shooting yourself in the knee. Investors want to know you are fully equipped to handle their money and yield profit. It is better to politely say you don’t know than to give a wrong assumption. Do a little research on your investor before your meeting.
The Elevator Pitch – It is important to learn how to sell your ideas in a very short amount of time, no investor would want to give you up to 30 minutes of his time to explain your business in your first meeting, it is important to learn how introduce your business to an investor in less than 5 minutes.
Your speech should be short enough to make him understand your vision, know you are quite knowledgeable and make him ask questions to know more.
Shoot to Kill – They say you never get a second chance for a first impression, true. Once you get a shot with an investor, you must be prepared to bag him in the first meeting.
The saying “He was lucky” is simply ignorance, luck can simply be defined as “preparation meeting opportunity”. Make your business a working model and be ready at all times, an angel investor might come knocking soon.
Venture Capitalist Systems- EDITED
List of 5 funding platforms, their info, and links
Plot 266 B Kofo Abayomi Street Victoria Island, Lagos Nigeria.
- New Devco Investments & Securities Company Limited
NNIL building, 4 Muhammadu Buhari Way,
P.M.B 2340 Kaduna.
- Solid Rock Investment & Securities Limited
4th Floor, Banuso House
88/92 Broad Street, Tinubu Lagos
- Riggs Ventures West Africa Limited
Plot 5 Imam Abib Adetoro Street,
Off Ajose Adeogun Street Victoria Island Lagos.
+234 1 4619301
- Osprey Investments Group Limited
47 Missisipi Street, Maitama District, Abuja
+ (234) 097800416