If founders are jostling from one investor to another seeking funding for their projects there are some advices:
- Seek value for the investor and pitch it
- target smart money first, ask for some specific support in addition to funding
- only approach investors when you’ve completed your homework on legal, business case, product development, and marketing
- focus on a “big name” lead investor even for a small cheque
These are the principles that will help to stabilize a venture at the very start, and earn it a good reputation.
Once the business starts expanding, the new challenges of scale-up will come in; so it’s better to foresee everything in advance. A business is like playing chess – each of your next moves may result in a success, or failure. Only the ones who know the rules of the game, and the proven strategies they can rely on, will eventually win.
One more golden rule – cross-check the success of your business against your own gut. Then ask as many external consultants as you can. Try to form as objective an overview as possible; you should get to know all perspectives, all risks and opportunities stemming from this project. Once you do believe that it’s going to win, you will be able to persuade others in the success of your venture – which, in the course of time, will become your own success.
