DO YOU LIKE GAMES? ARE YOU LOOKING FOR CAPITAL FOR YOUR COMPANY? – THINK LIKE A CHESS PLAYER!
When considering seeking out an investor, think a few steps ahead and develop a strategy. Oftentimes businesses contact us seeking capital and needing in within 2 months. But what they been doing up until now?
Below are 8 strategic steps that will allow your business to grow and secure capital in good time:
- You must have a plan (even though it will change). This will give you long-term perspective. Not sure how to do it? The most effective option is to bring an expert in and practice, just as you would practice your chess game with a player better than yourself.
- Be visible. Take care of your PR. Investors look at a lot of investment opportunities. You must be seen; your communication about the product and its successes must be up to date and hit through the noise. Remember to make sure that investors can get in touch with you. Unless you are visible online or at industry events it will be nigh impossible for investors to find you.
- You and your business need to constantly grow and improve. It is worth remembering that it takes time to gain investors’ trust. Once a company gains an investor’s attention, it must be able to prove that it is a working and growing business.
- Remember that it can take months to close a deal even after you’ve found potential investors. During that time, make sure to keep your finger on the pulse and do not bet everything on one horse. Keep your business safe, carry on with your plans and do not stop speaking to other investors, potential or otherwise.
- You are in the game for as long as conversations continue. Be careful and remember that potential investors watch you; the things you do can jeopardize the deal. Any action you take must further your case and prove to the investor that they’ve made the right choice. Sign new contracts with customers, get approvals for your technology, etc.
- Get ready for multiple rounds of information exchange. You will have to answer questions about the market, your competition, any risks associated with your business. You need to convince the investor that you know what you’re doing, and that when you don’t know something, you can get that information quickly.
- As you grow your business make sure it has exposure. Have a credible plan and be patient. Eventually, you will raise the capital you seek on conditions that are best for the further development of the company.
- Remember, the best you can do in this game is to give yourself time. Start building a network of investors well before you need capital. Get to know and keep in touch with professionals outside of your area of expertise.
By: Dorota Sajewicz, CEO/co-founder of BE THERE company representing investors and firms during capital acquisition and sale/purchase transactions.