Think of investment as a vote of confidence in your business. There is a number of things to watch out for if you want to earn it.
You need to know your numbers.
If you’re seeking capital from a bank or fund, these will look for a record of strong financial performance, impeccable accounting, and detailed debt repayment plans. Venture Capitalists look for the potential for a high return on investment, a viable promise that your business is set for growth and expansion. As such, they are likely to screen your company looking for signs of growth: are you going to issue shares? Will you expand to a viable target market with high-growth potential?, as well as evaluate your business in terms of revenue streams and cost structure.
Define & visualize your business model.
There’s a good chance that a number of investors will have seen a business idea similar to yours. And that’s okay! Here is where your business model offers a unique selling proposition and explanation of why they should allocate their funds in your venture. A similar product, platform, or a service can be executed in a multitude of different ways depending on the delivery channels, target market, value proposition or key partners.
As such, a well-defined and clearly visualized business model lets you distinguish your business in the eyes of potential investors.
Know your USP.
This is probably one of the most often heard pieces of advice, yet, often grossly underrated or simply misunderstood. Your Unique Selling Proposition. This goes back to the business model; you may be offering an everyday product or a service, but the way you offer it, or how you deliver is where your value proposition lies. Whether it is your creative marketing, where your key partners include large influencers that have instant access to your target market or your remotely-based workforce that networks with relevant connections all around the world, and can solve consumer pain points in a timely manner – your USP can be bested in many of your business model’s elements. One piece of advice – play to your strengths, where the keyword ‘unique’ refers to you, your team, and your resources.
KapVista offers a variety of resources to help you define and visualize your Business Model, Unique Selling Proposition, and more.
Get in touch with us to strategize your next move.
KapVista Founder & CEO
Ph/Whatsapp – 0466 902 263
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