The 13 most costly mistakes C-level executives make raising capital: Save yourself time, money, and heartache by avoiding these all-too-common pitfalls and set yourself up for success before you even start.
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The 13 most costly mistakes
C-level executives make raising capital
Save yourself time, money, and heartache by avoiding
these all-too-common pitfalls and set yourself up for
success before you even start
Your business plan should be the crux of your
presentation; the foundation, if you will. This
will demonstrate to investors exactly who you
are, what you bring to the table, how you’re
different and the overall health of your
company – all of which they will use when
considering whether to take a chance on
you. Skimping on this piece of the puzzle will indicate to your
proposed investors that you either don’t know what you’re
doing or you simply didn’t care enough to make an effort,
neither of which will make a good impression.
Invest the time and resources into developing a solid,
comprehensive business plan complete with all the
necessary elements, including company description,
nancial projections, unique value proposition and a
competitive analysis. That being said, don’t overload your
prospects either. Your plan should contain all the pertinent
information in a succinct format to quickly and accurately
tell target investors your story.
If you want potential investors to buy
your pitch, you’ve got to do much more
than just ask them for money. You’ve got
to clearly dene and demonstrate
exactly what that money is going to be
used for. Without specic milestones,
your investors won’t be able to
recognize the value in your proposition. Instead of
simply stating how much you want, focus on exactly
what you will deliver with that amount.
Likewise, if your projected milestones or timelines are
so unrealistic that it’s highly unlikely you’ll achieve
them, investors aren’t going to be willing to take that
chance. Venture capitalist Richard Harroch states, “If
you show me projections where you are at $500 million
in three years, I will just think you are unrealistic,
especially if you are at zero in revenues today.” End of
conversation.
Unclear or Unrealistic
Milest