Venture capitalists receive hundreds of emails from passionate entrepreneurs ready to discuss their latest startup idea. If you manage to secure a call or a meeting, you still have to convince a sharp investor that your idea is viable and worth their time and money. Watching ABC's Shark Tank, you might have some idea how these meetings can go.
While every investor has a different idea on what is important, there are some must-haves that will naturally increase the appeal of your startup.
Every new business must start with a solid foundation and a mission. The mission will drive the business forward and the foundation will offer support. Here's how to start:
An Idea or Opportunity: An entrepreneur must have an idea that solves a problem. The opportunity to solve problems exists and people come up with great ideas all the time. Can your idea change how people do things? Is it easily adaptable to your audience? How much research have you done?
Team: The team that supports your business should have the passion and knowledge to support your idea. They must also be tenacious, committed and flexible enough to re-evaluate and change plans if need be. Your team must also be willing to do any job that is required to support the business.
Vision and Determination: Are you and your team determined to not only stay with your business but grow with it as well? It takes a bold vision to move people into trying something they've not tried before. Your vision will inspire you, your team and potential VC's.
Even a strong foundation and vision could fall short of moving a venture capitalist into investing. A smart investor will also look at the big picture. Do you have what it takes to run a viable business?
Experience: Investors are intrigued by seasoned entrepreneurs who have taken their hits and are still motivated. These business owners will also have tested, researched and reworked their idea until reaching a positive turning point of customer interest.
Customers: A viable company will have a well targeted market for their product or service. They will have success stories and a compelling marketing angle that already has customers talking about it.
Income: With customers comes a positive cash flow. If you can demonstrate a solid understanding of your accounts receivable and cash flow, including collections, VC's are more likely to put their trust in your ability to run a business.
Whether you've attracted an investor to your startup or not, you may consider growing your team as you grow your business. If you haven't already, you may move into a larger office space, purchase equipment to make product faster, rent warehouse space to store product or begin investing in other opportunities. In order to grow your business, you need to be aware of your bottom line and what funds you have available. Your accounts receivable, perhaps not your favorite part of starting a new business, will keep your business growing, profits rising and definitely keep venture capitalists interested.
Recognizing a specific need for B2B collections and business relationships, BYL Collections launched a sister company, Enterprise Recovery. Enterprise Recovery works exclusively with businesses attempting to collect from business clients. The same care and customer approach applies.
To ensure positive results, including revenue and investor appeal, build a team that believes in your idea and is willing to do what it takes to reach success with you. Click below to learn about the B2B collections process and learn more about Enterprise Recovery.