Three elements to communicate to potential investors
When developing an online business, the market you choose is important. Although the services you offer, and the methods for generating revenue may change, being part of a growth market is crucial.
There has been a rocky road for those of us who love books, magazines, and newsletters. Five years ago, very few wanted to invest in magazines. Now, however, equity bankers are looking at publishing as a growth industry. This hasn’t been the case in easily a decade. Some might argue three or four decades.
When it comes to investors, they know the markets they want to invest in. What industry do you plan on building a business in?
After the course is set for your business, there are three major points you need to communicate to your potential investors.
After informing investors of the industry, you need to tell them why it’s popular. Explain the latest trends and data relevant to their investment. Express to them the potential growth in the market.
Next, tell them how the market and industry is underserved, and how your business will fill the gaps that currently exist.
Then, take a deep dive into your management team. This content should be up front in your business plan deck, which we will discuss in greater depth during the Business Plan Development webinar on May 15th.
In the management show that you are known, and that you know about the market. Share your knowledge, discuss where you’ve won awards, and if you’re part of a list of other movers and shakers. Share information on books or magazine you’ve publishers or events you’ve spoken at. Bring forth details and idiosyncrasies pertaining to your industry. Doing this tells investors that you are smarter than the average guy that does what you do, and that you’re a brand inside your industry.
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Then tell them about visibility, networks, and how knowledgeable of the industry your entire management team is. Explain why they know more about it than the average person inside or out of the industry.
The odds are that the investors will have an idea about your industry, which is why leading with the management team helps them know the key players right away. It will establish who you are and why your uniquely qualified and that the other people gathered around you are also uniquely qualified.
Discover how to develop a business plan responsible for generating millions of dollars in funding when you attend our Business Plan Development webinar on May 15. Register now as digital attendance is limited.