During my pitching for funding workshops, it never ceases to amaze me how people seem to know better, despite having no luck in getting funded so far
So many people come along and want to skip the essential steps of relationship-building and preparing properly. In this article I will share the 3 biggest issues that I encounter when I hear startup business owners explain to me why they should get funded (which is a big assumption in itself).
- They add no value to the people who can help them
I have some great connections in the world of startup investment and run a workshop to explain how to pitch for funding. I run this because of the heartbreak I witnessed in taking people who were unprepared for a pitch into investors. So many times I have seen people talk themselves out of investment because they talked too much, didn’t answer the questions asked and thought that by talking about something else that they were being clever.
The solution: Prepare succinct, compelling answers for the toughest questions that you are likely to get. If you know there are holes in your business, do not try and bluff your way around them. Most investors respect honesty and will see through your smoke-screen anyway. Know where you need help and incorporate this into your responses….and listen closely to the questions, making sure that you answer them!
2. Send your unchecked proposal to as many investors as you can find before asking why none of them are interested, or even responding to you
I hear this a lot. Even after sending badly prepared documents to several investors (and often getting no response) they still keep going with the same approach. It bemuses me that so many people do not even think about changing their approach to see whether different ways work or not, especially after so much rejection.
Solution: Get your approach to investors checked by an expert. This may cost you money, but it will cost you much more in time, frustration and no funding at the end to not do this, especially if you are clearly not getting the results, or even replies from your previous approaches.