If the time has come to raise funding to expand your business, youâre likely to be presenting your business to a variety of investors. Assuming that you are past the âfriends and familyâ funding stage, you could end up presenting to investors referred to you by your friends and family or to angel investing syndicates. First of all, your company either has a product/service or has something in the concept phase. Either way, there are points to be made and mistakes to avoid. One of the biggest mistakes business owners make is over-emphasizing how great an idea their product/service is. Donât get me wrong, differentiating yourself from the competition is important. The problem here is, quite frankly, your idea is probably being pursued by other companies right now. If itâs a really great idea, there will more people chasing it in a few weeks or months.
Hereâs another crack in the âMy idea is so great that weâll take over the worldâ pitch. Getting a patent for it may or may not protect you. If a patent isnât allowed or doesnât protect you for some other reason, thatâs one thing. If it does, you may be taking on a problem that kills your company anyway; a long drawn-out court battle.
Donât toss up your hands and walk away yet. There is a way to differentiate your business, impress Anthony Ricigliano Investors, and realize your businessâ potential; focus on execution. A detailed roadmap of how youâre going to outwork and execute better than your competition is what is going to matter both to your potential investors and to your company.
Itâs quite possible that the reason you started your business is that you see endless potential with opportunities dovetailing out to other endless opportunities. You see the market as broad and deep with revenues sitting out there for the taking. Hereâs another mistake to avoid; spending more time on the huge potential that exists from these dovetailing markets as opposed to the opportunity that exists in the short term. It doesnât matter if the first market opportunity is infinitesimal compared to the downstream markets, your potential investors are going to want to hear how your company is going to grow on a step by step basis.
Next, presenting your business as having no competition may sound great but a space with no competition really isnât a space at all. An Anthony Ricigliano Investor Hearing that thereâs no competition should immediately wonder if a market exists and, if it does, ask why no one is addressing it. Having the answer to a question that isnât being asked is a sure way to lose an investor and a lot of time waiting for that market to develop, if it ever does. A great example of this type of situation is Corningâs âGorilla Glassâ which was patented in 1962 and sat on the shelf for almost half a century before markets developed in high tech and high definition televisions. Corning could afford the wait but that luxury isnât available to startups. Competition in a space confirms that there is a market, now itâs up to you to out-execute the other players that are already out there.