US startups raised as much as $156.2 billion in 2020 — a record that might just be surpassed this year, as investors continue to look for businesses that promote innovative solutions and technological advancements.
While competition is tough in the world of startups, you can stay at the top of the game by collaborating with investors who believe in your business as much as you do. And if you want your startup to catch the attention and gain the confidence of investors, then follow these four tips.
Create a clear vision and mission
Your company’s vision is a reflection of its purpose while its mission details your long-term goals as a business. These two statements will dictate the course of your startup and will influence a lot of things, including your company culture, your brand, and your products.
Having a clear and solid vision and mission gives your investors a preview of what you have to offer as a startup. Having a disruptive vision, for example, attracts investors who are interested in unicorn startup companies and want to gain astounding returns. Your vision and mission will ultimately set the values, goals, and people you would like to align yourself with as a business. Thus, investors also consider if they align with your startup’s vision and mission before they start working with you.
Choose the right people for your management team
The management team will set the course of your startup’s future — which is why investors need to know that they are working with smart and savvy business leaders. On top of that, it also helps to know that you have a solid team that you can build your business with.
Start with a financial manager, one of the most in-demand careers in business administration, who can help you set good financial goals and a sound plan to achieve them. Look out for someone with an eye for long-term strategy with present data, as well as a hands-on approach. Be sure to have point-persons for human resources, operations, and marketing as well. Having individuals who have the right business knowledge and skills onboard will make you gain the seal of approval of your investors.
Work on your brand visibility
Is your startup catching the attention of the right people? Your target market and your investors should be able to recognize not only your business, but also your products and services.
Your marketing team should be able to solidify and promote the concept of your brand in a manner that honors the values of your startup and appeals to the taste of your consumer. Creating a recognizable brand will build the trust and following of your target market — which will, in turn, affect your success as a business.
Make an organized business plan
Investors are looking for startups that can guarantee them a return of their investment. One of the ways you can gain their trust and confidence is by making a business plan that will inform them of your company’s fund utilization. Give them a clear picture of how you plan to make the most out of your startup’s capital.
Most importantly, conduct a break-even analysis that can give them a proper forecast of the profit and sales that your startup is projected to gain over the next years. Having a clear business plan — one that does not overpromise, but bases projections on data — will serve as a guarantee to individuals and agencies that they are making the right investment and that they can expect healthy returns.
Written by: Zara Staples