It’s been more than a month since we started to be serious about raising our first round at Trymytutor.com and I took on the responsibility to be the dedicated founder for it. We’re still in soft talks and are working on it (good news to come soon)
I’ve learned quite some things in this one month by reaching out to investors, talking to the over mails, phone and sitting in long face to face meetings. But the most important thing I learnt is to know every tiny detail about your business. And I’m going to dive a little deeper into it.
A little preface:
Before going in, I must let you know that you can’t go babbling at the end that I know everything about my business still I’m not receiving any success in raising funds.
One, it is my personal view about things. Secondly, successfully raising funds is a result of a mix of a lot of things. Your idea, business model, traction, vision, industry, future, execution, team etc are some of them. I’m considering this as an important thing because we’re pretty good on other things.
So, with that said:
Do you know everything (or the most) about your business?
The answer better be yes in order to score yourself some investors, customers and win over your competition.
It starts showing from the first interaction you have with an investor. The investor has a lot of questions to go deep down into your idea or business. Starts from the general terms like current revenue, current numbers, market size, serviceable market size, burn rate per month, unit economics etc during the first meeting.
If you manage getting the interest and get into another phone call or meeting, things go deep down. Here’s why:
If the person is interested enough to take things further with you, she’ll do her own research on your business and will be ready with business. These mainly run on the future, your USPs, competitive scenario (PS- If you are just in the idea stage, don’t dig too deeper into competition), risk metrics, SWOT, go-to market strategy and how it will work, why do you need the funds and how will it be used and a lot of things.
That’s the exact point where you need to have all the knowledge about your business and industry. Because the investor can easily gather the basic info you have (everyone can google, remember?) but they look for more data based insights from you. And one more important thing to keep in mind is it’s not just about having the numbers on your tips. It needs to be a good mix of a compelling vision backed by insights.
All I’ve learned from my experience with all meeting I’ve attended that you really need to go deep down into your industry, business, users and numbers. I always keep a track of all the questions asked (highly recommended) and make sure to go deep down into the questions so that I have things on my tips.
Just try being the master of your business for once and you’ll be amazed how well impressed people will be after a discussion with you. We don’t know shit about other things happening in the startup industry, we are dumb at that. But we sure as hell know how’s our business taking shape and what’s our industry about.
I hope you took something positive from this one. I’ll keep things updated on my fund raising learning so that I may be able to help more. Hope to share some good news really soon of setting up base camp before starting up.
This article is written by :- Somvir Yadav (Chief Marketing Officer at TryMyTutor.com)