Getting to YES!

Many entrepreneurs often wonder 'Why did that guy reach heights I have not yet attained?" On the one hand, as I had previously written, many young entrepreneurs strategize themselves out of business.
Research and planning are essential for sure, but you have to also get stuff done! And that applies equally to stuff that contributes to running the business as it does planning to reach a goal.

I have often been complacent in the hardcore research, planning, and dedication required when it comes to securing working capital. While I've raised investment funding before, the big Series A money in the area of the $3 million + range has always eluded me.

With the wisdom and clarity, that time and distance can provide, I had to acknowledge, that regarding getting stuff done, I didn't do the 'stuff' that such an investment requires. And I say this even as we just secured another $200,000 for a new product development that we've partnered with. For example, whether you're raising investment capital or not, every business should develop a KPI chart. It serves as a real-time guide to where you intend to go, the expected results, and whether you're meeting those goals on the timeline you set. 

After a turbulent 2019 developing a large-scale platform for a client, chasing them to keep to the development budget, it is now time to turn inward and focus on our own internal products and a wide breadth of company funding.  We've always had success raising the $100,00, $200,000, or even $50,000 investments. But while allowing us to work in sprints, it was never the long-range investment necessary to do the proper long-term rollout.

When I got involved in a startup accelerator recently, I knew 90% of the materials they were presenting. In fact, perhaps 99%. But the few things I didn't know brought to light the depth of where I needed to go if I really wanted to make a run at the underwriting we seek.

It is time-consuming, daunting, and exhausting. Yet, necessary. Why should an investor commit to your vision if you are not willing to commit to the work? Many times it is just seeing that you're willing to get into the weeds of the detail and showing that you actually know what you're doing that an investor wants to see.

The days of full-blown business plans are not so relevant in today's fast-paced investment world. Attention spans are short. So you have to sell your story, quickly. To this end, what you need I discuss further below. 

Investors really only want to know a few things:

1. What is the idea?
2. Why will it work? (i.e. who are the customers and their motivations to subscribe)
3. How much money do you need, what will you do with it? And, 
4. What do I get, when, and how? 

Begin with the story -- who are you, what's your collective experience that makes you a good investment now. The product, the rollout, and how you build a sustainable profit come next. Lastly, how do you build value? Will you build something with the plan to sell it, to do an IPO or reverse merger? 

The best way to tell the story and the expectations is with:

1. A pitch deck, preferably 10 slides -- this is your elevator pitch to describe what it is, why it will work, management, and a closing statement -- be sure to include the ASK. 
2. Use Of Proceeds and Proforma -- this is where the money will go, what it achieves, and what income you expect, and when. 
3. KPI -- a detailed spreadsheet showing user acquisition, customer acquisition, and monthly and yearly earnings (and as Russell of NewChip pointed out to me, always include upgrades, downgrades, and churn rates).
4. Video -- make a short video explainer.  

If you need help with startup consulting, process modifications, or marketing, contact us or join the NewChip accelerator program.

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