Rice Business Report September 2019 September 2019 Rice Business Report | Page 19

Rice Business Report September 2019
Avoid These Five Mistakes When Submitting Your Business Plan To Raise Investment Funds
By Marc Bandemer
Any potential investor wants to see a highly readable and believable business plan with a summary, a
management team overview and financials but after submitting your plan many people think funding will
just arrive when in reality it can take time. By following the steps below you will be able to avoid some of
the most obvious mistakes when raising funds for your project
One - If you are a company that has brilliant technical knowledge and no real sales expertise do not ad-
vertise it. Information on your web-site including the management team biographies will clearly state the
management teams background including their technical expertise, their degrees, their patents and such
like but amazingly their go to market strategy in the business plan is usually incomplete and sometimes
missing. The solution, make sure you have a credible go to market strategy with a credible sales leader.
Nobody will invest if you don't.
Two - Make sure your website is stunning. Too many companies think that running a business is all about
product and the abilities of the technical team - frankly it isn't. This may be true but today investors will
always expect to see more. They want to be convinced and when they will go straight to your web site
they are wanting to be wowed! Unfortunately, so many people provide what looks more like a school
project. Make sure your website is utterly brilliant and that it doesn't look cheap. Ask a variety of people
if it looks modern, if it looks appealing, particularly the photos and ask if it is easy to navigate. Also please
ensure that it is relevant - it's not about how wonderful you are it's about how you and your company will
solve their challenges.
Three - If you are raising money through a prospectus or private listing make sure that your brochure
stacks up. Many people do not place enough time and effort with the visual appeal of a Private Listing
Brochure and again you don't want to provide a sub-standard document that will fail at every level.
Spend some time and money to ensure that you convey your messaging in a professional, crisp business-
like manner and that it is logical and easy to read. Also don't use random un verifiable facts - make sure
that you underpin everything that you state will be possible with the latest research etc.
Four - don't use jargon. Anyone who goes to your site or who takes a look at any promotional material
designed to answer questions won't stand for jargon which usually means nothing to them. If you must
use jargon or acronyms, make sure there is an explanation - people won't ask they will vote with their
feet! A well written website and brochure is music to the ears of potential investors
Five - Make sure that on your website and all other materials that you have the same font. Make sure
that the supporting marketing material looks great and make sure that the stories you tell are verifiable
and relevant. Lastly please don't be controversial People will make their mind up on quality and this in-
cludes the look and feel, the overall professional approach. If you can use proper references form proper
companies. Don't add something for the sake of adding something as it has to be contextual and relevant!
Follow these tips and life on the road to raising funds will be much easier
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