I’m about to share a secret no one ever taught you in school or elsewhere. This secret will help you make sense of an investor and put you in a more favourable position.

Whether it is personal funding or Investment funding, a business will always be in need of funding for as long as it’s in existence.
There are two stages when starting out where funding is vital, but the second stage (The beginner) is our focus:
• The idea stage: when you have conceptualised your idea and back it up with a well detailed business plan but no resources to execute it.
• The Beginner (startup): when you have executed some of your plans and set in operation but in need of resources to expand.
At this stage, your presentation must be guided by practical rather than theory. Investors want to see what you’ve done rather than what you will do.

Now hear this! No matter how sellable your products or services are, if you have been selling to your close ties alone for more than 6 months or a year, it would be difficult to convince an investor especially an intelligent and experienced one. Some investors don’t find it convincing enough to hear an already established business is still struggling to sell beyond close ties.

Consider this real-life example, Duduke’s experience with an investor:
Duduke a young female entrepreneur met with an investor, after Duduke’s presentation the investor asked Duduke a question: “who have you sold your products and services to?”
“my uncle’s wife and few friends.” Duduke answered. Then the investor threw another question at Duduke, “how many times have you provided them your services or sold your products to them?”
“One-time,” Duduke replied. Then the investor retorted, “you run a great business but it will be difficult to convince an investor if you haven’t sold beyond your close ties.”

A sound way for already established business to impress, convince and attract an investor is to sell beyond close ties. If you ever need motivation to break limit, I have just provided you with it. Grow your business if you really want to attract investors. The truth is, the real business are those you don’t have to know before they buy your products or services. It is difficult but that is what make investors to want to listen more.

Sell beyond close ties!

Victor Amos
(Author Spanner Twelve)
I share business & management secrets, tips and tricks