How To Get Your Business Investor-Ready

 

On the road to investment, there’s a lot to consider. You must understand what investors are looking for when they invest, as well as what qualifies a company for the funding they provide. It also helps to know how much money you should ask for rather than settling on a random figure.

 

Find Funding that is Best for your Company

 

There is no such thing as a “one-size-fits-all” solution when it comes to investment funding. While getting money through the door may be the most important thing, it’s also important to think about which method is best for your company. 

 

The good news is that we have numerous financing options available to assist the company’s growth.

 

 It’s important to remember that investors can bring more to your company than just money. Indeed, investors frequently possess specialized knowledge, and having access to that knowledge could be just as valuable, if not more valuable, than the money on offer.

 

Make it Clear Why you Want People to Invest

 

When looking for investment, it’s critical to understand what investors want from their money and what qualifies a company for the funds they offer. Clarity is crucial in demonstrating this. Have a clear understanding of how and why investment would benefit your company. 

 

Every company has growth plans, but what distinguishes successful investors is their ability to demonstrate a strong track record. Explain why you approached a particular investor and, more importantly, how you arrived at the investment amount.

 

Tell potential investors exactly how their money will benefit your business over the course of the investment. A roadmap outlines where and when an investor’s money will be spent, as well as which key milestones must be met.

 

Understand the Market

 

To persuade an investor that your business is worth investing in, you must demonstrate a thorough understanding of your target market and research into your target customer base. 

 

Knowing about market segments will show that you are aware of what your competitors are doing and what it will take for your company to succeed in its industry.

 

Prepare your Business Strategy

 

In order to attract an investor, you must be prepared, and you must have the right mindset when approaching potential investors.

 

A thorough business plan will demonstrate this mindset by laying out your company’s goals, strategies, and financial projections. Giving your investor confidence that you know where your company is going requires demonstrating a clear growth ambition backed up by evidence. 

 

Assessing how market dynamics might affect your plans and how customer demand might change after the previous years is also critical. Don’t be afraid to bring up potential risks; it shows that you’ve carefully considered your business plan and are prepared to deal with them if they arise.

 

Detail an Exit Strategy

 

Most investors want to know about your exit strategy, and most want to see a return on their investment within 5-7 years. As a result, investors will consider how they will exit your company in the future to maximize their profit.

 

Demonstrate to investors that you’ve thought about their perspectives as well as your own.

The Secret To Selling: Benefits Over Features

The majority of people are uninterested in purchasing a bed. They simply wish for a pleasant night’s sleep. Founders and marketers must sell more than just products; they must sell what their product enables customers to do.

 

You’re not just doing it wrong if you’re not focusing on the benefits that your product or service has for its intended audience/customer. You’re doing it completely incorrectly. It’s pointless to have a product with features that people don’t actually want.

 

What’s in It for Them?

 

If you’re launching a new product or service to users, this is the first question you should ask.

 

If your user can’t tell what he or she will get out of your product right away, they’ll probably move on. 

Consumers rarely buy just for the sake of buying, according to studies. 

 

What do they purchase? 

 

Something that will assist them in resolving their issues.

 

Sell Features Not Benefits

 

For many of you reading this, this may not come as a surprise. However, it’s surprising how often enthusiasm takes over and businesses fall short of their goals. The truth is that if your user can’t tell right away what they’ll get out of your product, they’ll probably move on to the next best suitor. 

 

Try to think of features and benefits separately, even though they are frequently inextricably linked. A feature is a characteristic of your product, whereas a benefit is the outcome of your product when a customer uses it. To put it another way, features are rational, whereas benefits are emotional.

 

Although you should be proud of all the hard work you put in to develop and launch this product, keep in mind that your users aren’t particularly interested in you, your company, or the long hours you put in to make it happen.

 

Speak to the Audience

 

You’ve begun to speak your audience’s language when you see your product or service as a solution and can articulate the problem or dilemma it solves.

 

You’ll need to conduct some market research to accomplish this. Here, you’ll want to identify your audience’s issues before determining the impact these issues have on their personal or professional lives. After that, you can start positioning your product properly.

 

You’ve accomplished the impossible when you can engage your audience and leave them feeling an emotional connection. You’ve established a connection with them, and as a result, they trust you and your product.

 

Use Emotions

 

Creating a sense of longing, resolving a problem, or appealing to your users’ emotions can all pay off handsomely. Although stating the benefits is excellent and necessary, it is emotions that will motivate your user to make a purchase.

 

Making emotional connections with your audience is, at the end of the day, what will sell your product or service to customers and turn them into fans and ambassadors. If you can tap into their emotions, you can almost guarantee that they will return.

 

Turn Features into Benefits

 

So far, we’ve ignored features and turned them into the story’s antagonist. But wait, this isn’t quite right. Because, with a little practice, features can be easily transformed into tangible, real-world benefits.

 

All you have to do is explain to your audience how that particular feature will benefit them in the short and long term. Yes, it’s not as glamorous as tapping into their feelings. It can, however, play an important role in helping you sell your product. At the end of the day, a particular feature serves as “proof” of the benefits you’re attempting to sell. It’s all about your marketing’s credibility.

The Importance Of Building Relationships With Clients In Person

It is important for entrepreneurs to know that businesses are built on relationships and that face-to-face meetings are essential. While digital communication has come a long way recently, in-person meetings are still important for developing a strong culture, developing rapport with clients, and connecting with people on a deeper level. 

 

Face-to-face meetings are preferred by me and many businesses over other forms of communication, so knowing the benefits and how to run a productive meeting can help you advance in your career.

 

Interpreting Non Verbal Cues

 

You can learn a lot about a person’s body language and the small signs they give through facial expressions and hand gestures if you pay attention to their body language. Working in this business for a long time has taught me how to read subtle cues a person gives when we talk in person. 

 

You won’t be able to read these signs over email or over the phone, but being able to read people’s body language is a very good thing. You’ll be able to understand what the person is actually saying.

 

If your client tells you that they completely agree with the suggestions you’ve made, but their body language suggests otherwise, and you’re aware of these signs, you can offer them some alternative options or reassure them.

 

Help Focus on the Meeting

 

Technology has both advantages and disadvantages.

 

Virtual meetings are undoubtedly beneficial and appealing, but in today’s world, it’s likely that people will be preoccupied with other tasks, such as checking emails, during the meeting, preventing them from fully concentrating on what is being shared. 

 

However, multitasking is extremely rare in face-to-face meetings, and this is one of the most important benefits. Because such meetings are more engaging, and because people are afraid of being noticed if they try to do something else, full or maximum concentration is almost guaranteed in such meetings.

 

Clients Will Appreciate you Better

 

Yes, you will need to put in extra effort, manage your schedule, and schedule time to visit your client’s office for a face-to-face meeting, and I know this sounds inconvenient but I assure you, your clients will appreciate your efforts. 

 

This helps you make a great first impression. 

 

Your client is likely to believe that because you made the effort to visit them in person, you are passionate about your work and that the extra personal touch is important to you. 

 

As a result, your business relationship will become stronger.

 

It is Effective

 

A face-to-face meeting or communication can help increase efficiency. 

 

Rather than spending your entire day sending and receiving emails, you could meet in person and go over all of the details of the meeting. Because the overall energy level is higher during such gatherings, it helps to boost creativity, allowing you to brainstorm and solve multiple problems at once. 

 

Also, for those who are uncomfortable with written communication, face-to-face meetings will be more effective. After all, everyone has different preferences, and some people prefer to communicate with people in person.

 

There is nothing more important to a client than letting them know how passionate and important your business is to you. Meeting in person allows you to communicate that to your future investors. 

Speed Stuns – Calculating Sales Velocity

 

Sales velocity is a metric that measures how quickly you convert leads into customers. Calculating it will reveal information about your pipeline, sales team, and overall business health.

 

The sales velocity equation’s results reflect the health of the company, the overall effectiveness of the sales team, and where the team can improve sales productivity to help meet revenue targets.

 

Sales velocity is an important metric because it shows how long it takes to close a deal or complete an opportunity. Understanding how people move through the pipeline and where they get stuck is important because it will help you identify problems at every stage of the pipeline, from lead generation to close.

 

This is especially useful when you need to assess the impact of changes to your product or strategy, as well as identify areas where you might have a longer sales cycle and plan accordingly.

 

How to Calculate Sales Velocity

 

Multiply the number of opportunities in the pipeline by the value of your average deal and win rate to determine your sales velocity. Then multiply that figure by the number of days in your typical sales cycle.

Sales Velocity = (Opportunities x Deal Value x Conversion Rate) ÷ Length of Sales Cycle

 

 Deal Value 

The average amount sold in each transaction

 

Opportunities

The total number of leads you’ll work through in a given time frame. Calculate this figure at the organizational level or by rep, region, or customer type.

 

Conversion Rate

Over a given time period, the percentage of leads that become paying customers.

 

 Sales Cycle Length

How long does it take for a lead to turn into a customer? This figure is determined by the product, price, and number of sales cycle steps.

 

Any of these four areas can have an impact on your sales velocity. As a result, you’ll want to keep track of each metric in order to optimize your pipeline.

 

When it comes to tracking and optimizing velocity, it’s important to remember that consistency is key. What is the definition of a conversion? How do you know when a lead has turned into an opportunity?

 

Of course, this varies by organization, but it’s critical to define your variables and stick to them over time.

 

Improve your Sales Velocity

 

Tracking performance, like all sales metrics, is the first step toward improvement. If your sales velocity math doesn’t add up to an effective sales strategy (prospects stay in the consideration stage longer than average or drop off right after receiving a free trial), you’ll need to work on one or more of the four variables listed above.

 

You can speed up the cycle while also increasing opportunities, win rate, and average deal size. 

 

Sales Velocity Demands Attention

 

Sales velocity reveals your company’s overall health and identifies four distinct areas where you can improve your strategy.

 

Running velocity numbers can reveal where your efforts are paying off, whether it’s creating a more balanced pipeline, tweaking your sales pitch to better align with customer pain points, or targeting better leads with a laser focus.

 

Although sales velocity is all about speed, it is also beneficial to play the long game. Concentrate on high-quality leads and don’t be afraid to reject leads early on. Review data on a regular basis to ensure you don’t miss out on a chance to improve closing speed.