Investors can be a foundation of a startup’s success. But it can easily work the other way round if you make a bad choice. Investors offer more than capital to businesses. An investment company like the IBID Group offers resources for realization of ideas as well as organizing and marketing. Be clear what to look for in investors and attract the best investors who don’t just fund you, but also mentor you on the path to growth. A David Barzilay expansion plan can be a wonderful step forward for growing businesses. Here’s a guide on how startups can stand out and acquire the resources vital for the success of an entrepreneurial venture.
- David Barzilay Expansion Tip #1: Communicate Well
When people are connected online, it is easy to correspond in the simplest form. Unanswered queries will deter potential investors from making the effort to approach your company. You should not lack time or a sense of caring, when it comes to responsiveness in this day of instant and immediate communications. Transparency and accountability is essential to ensure that communication follows clarity. If the business is misrepresented, this can create a serious problem for the investor. Best case scenarios cannot work well for new projects because you need to be realistic and pragmatic about the challenges ahead.
- David Barzilay Expansion Tip#2: Know the Different Investors
Understand the difference between angel investment and venture capitalists. Both demand profitability and sales. But venture capitalists invest larger amounts in later stage startups. Never say venture capital when you mean angel investment. Most people assume any outside investment involves venture capital, and that this is the hardest to attain. But it is important to remember that each class of investors are special and you need to have the right skills to attract the top rung investors. Avoid email templates like anything, because an individualized and unique approach can make a difference where bulk emails cannot.
- David Barzilay Expansion Tip #3: Complete Your Research
Select some VC firms that invest the amount required in the industry at the stage of development within the region. Venture capital firms are not all alike. Each has distinctive interests, identities and personalities. There is some amount of preference regarding the investment, at what stage it is made and what it amounts to. Many investors announce their preferences to prevent a mismatch. Check out the online repositories for information about venture capital, advice, statistics, book lists and listing of venture associations. Search for local or industry specific leads. Region, size of investment and other variables come into play as well.
- David Barzilay Expansion Tip#4: Have A Ready Pitch
Have a good tagline and instant summary ready. Commence with the elevator pitch that gets investors interested in your business, product and services. Describe your business well. Take on success stories of past companies to describe present successes and interest future investors. Entrepreneur pitches need to be excessively well crafted with an emphasis on real information exchange to take the negotiations to the next level. If there is a summary video or memo in place, it can work well. What happens when there is a contact is that you send a video or summary and then wait for the time to present your pitch. Success or failure do not come from presenting a pitch. It is based on the story, credibility and assessment of future prospects.
- David Barzilay Expansion Tip#5: Have a Business Plan in Place
Be prepared with a business plan in place before the pitch or the summary is completed. If the business plan is the script, the pitch is the film. Don’t make the plan too large or formalized because it never lasts and should not be beyond two to four weeks at the most. It is a myth that investors do not read your plans. The truth is that investors reject the business without perusing the plan. No business gets money without opting for rigorous study and examinations at the outset. This is known as due diligence.
The plan is a document which is active for due diligence. Some exceptional cases are there where well known entrepreneurs have taken their business to new levels competing for deals. But mostly, the process will take longer than anticipated. Due diligence is not the only aspect to be considered. Investment money should not be spent unless the deals sail through.
- David Barzilay Expansion Tip#6: Tap Good Growth Potential
Investors look for businesses that can raise sales over the coming years. They want portfolio companies to shoot to the next level. This ensures major growth. So, you need a large market. This is a market investors believe in. Businesses should be able to come up with real solutions or problems. Scalability means businesses grow without the requirement for too many more services or employees. Growth needs to be handled without losing out on quality. Do you have to double the headcount to double sales? Is the business scalable for services or employees? Can growth be worked on keeping products and services in mind, without increasing fixed costs? Businesses need to be original and not easily duplicated by competitors. Check for proprietary factors like patents, trade secrets, copyrights and trademarks. First mover advantage is not enough. Are there barriers to entry? Answer all the queries that make your company defensible.
- David Barzilay Expansion Tip#7: Manage Risk
Risk is a critical matter of concern for investors. If you have been part of startup endeavors, managing risk is of crucial concern. When people are on board with startup and management experience, a strong leadership can contribute to the health and marketability of the company. You need to have credibility as a business. What they get in return for their money and time is important for investors. Change your risk management strategy to suit investor needs, or try other sources of funding such as commercial lending. Another option can be to scale down the plan to ensure less startup funding.
A David Barzilay expansion strategy always focuses on securing a bright future for startups starting out. The aim is to instill a sense of confidence and further growth and development. David Barzilay expansion plans are always oriented towards creating value for the shareholder and the portfolio company, not just the investor. Ensure that your startup has what it takes to be part of an IBID acquisition, if you want to be part of a vision for success and a mission of excellence, characteristic of a David Barzilay expansion.