Raising capital from investors is difficult and time consuming.
Therefore, it’s crucial that a startup seeking funding absolutely nails its investor pitch deck and articulates a compelling and interesting story in the short time it has during the presentation. Having a prototype of your product makes it easier to sell your vision to investors.
I might revise “smooth and creamy and organic” to something like: Another pitfall is obsessing over the taglines of hugely successful businesses.
For now, stick to the basics so you can grow into a company that tells customers to “Think Different,” or “Just Do It.” But don’t start with those taglines here.
For additional advice, and a sample pitch deck, see How to Create a Great Investor Pitch Deck for Startups Seeking Financing and Want to Raise Financing for Your Mobile App Startup? It also gives you some momentum and traction and helps you recruit partners and employees.
Undoubtedly, version 1 of your product will not be as good as version 2 or version 3, but you need to start somewhere.Of course, you want a “minimum viable product” (MVP) to begin with, but even that product should be good and differentiated from the competition.Having a “beta” test product works for many startups as they work the bugs out from user reactions.So anticipate these questions from investors: Of course, your financial projections will not be perfectly matched with your actual results, but your financial projections can be revised as you move through the stages of your business.There are a variety of reasons why investors turn down startups and entrepreneurs.If you’re using a business planning app like Live Plan, you can follow along step-by-step, and revise each section every time you learn something new. Can you summarize the unique elements of your business in one brief sentence?It’s difficult to condense that much information into just a few words, but you’ll need to so you can recite it to mentors, partners, employees, and anyone else interested in your startup.Let’s move on to the next sections, knowing we’ll return to make changes often.This is the most important section for many early-stage startups since it ensures that your product is not a “solution in search of a problem.” You must prove that real people are willing to give you money for your product.My many years of experience working with startups, entrepreneurs, and venture capitalists has led me to conclude that business plans are largely a waste of time for the following reasons: Developing an engaging “pitch deck” to present your company to prospective investors instead of a business plan is the new norm.The pitch deck typically consists of 15-20 Power Point slides and is intended to showcase the company’s products, technology, and team to the investors.