Funding is one of the greatest hurdles that a startup has to face in its first few years of existence. Unfortunately, most lenders and investors look for investments that are already established and profitable. Startups can still get funding if they can convince lenders that the business is worth putting money into. Kirk Chewning, the co-founder of Cane Bay Partners VI, LLLP, shares some insights into getting investors to bring the money into the startup business.
Tell a Good Story
A good story adds to good numbers when making a pitch. The entrepreneur must inspire the investors with the hope of a great future in a specific market. Many of the investors have interest in the long-term prospects of the business. Therefore, when they get a hint that there are more significant opportunities out there, they will be more willing to put their money in the venture.
Show Them the Numbers
Investors want to see the hard numbers that the business is going to bring in. The entrepreneur must do good research on the potential market and bring up convincing financial projections for the investors. Investors are ready for businesses that are about disrupting the market and growing very fast. If the entrepreneur can convince them that the business is going to achieve that, the new business is on course to get funding.
Show that the Market Needs the Product
A product comes onto the market to solve a certain need. The need in question should be large enough to satisfy profitably objectives. The entrepreneur must prove there is a need for the product and the target group is large enough and capable of purchasing the product at reasonable prices. The entrepreneur should also look at other ways the company can grow the product line to net other clients.
Kirk is a co-founder of Cane Bay Partners. The company is a strategic management firm that offers a wide range of business solutions such as commercial lending, financial control, lending, financial modeling, software development, and deployment. At the institution, he is in-charge of the CEO duties as well as the portfolio risk management.