There are certain funding fails that start-up businesses tend to make – here is a list of perhaps the five top most commonly-made mistakes; but there are certain ways in which to avoid these in order to get the funding you need to realise your dream.
You present far too many facts and numbers which could prove to be confusing:
To correct this, tell a story. Be convincing and instead save all those facts and figures for later on. Try to keep it short and sweet and most of all, positive.
You don’t explain the issues your service or business solves:
You need to explain why your customers should buy your product or service. People usually buy and invest in solutions to specific problems.
Promoting sales forecasts is the wrong thing to do:
It is imperative to have a focus on the benefit that your business will offer its customers.
Don’t thumb-suck a whole host of numbers. If you don’t know what your long-term sales records look like, explain the benefits of the business and what it can provide customers and how the company stands out from its competition.
You are absolutely devoted to your business plan:
Think out of the box and embrace other revenue possibilities.
To be a spot-on entrepreneur you will need to seize the opportunity to make money and this often means being flexible and willing to accommodate customers when they want your service in a slightly different way that you already offer.
The idea here really is to ensure that your service or product is as attainable as possible to as many people.
Ownership risks discussed at this point:
Discussing the risks of ownership at this stage is not necessary – instead broach the subject when you have a follow-up meeting.
The main objective of the pitch is to start building up relationships with your investors- instead focus on them falling in love with what you have to offer and what you do.
Outlining the finer details of your start-up business need to be saved up for meetings further down the line.