A few months ago, in between everything else in my life, I had been working on applications for accelerators and an executive summary for investors.
While money is always a good thing, I was surprised by the unexpected benefits. The questions asked by investors are the same ones you should be asking yourself.
- If you had additional funds, how would you spend it? How much would go to marketing, to software development, to legal, accounting and operating expenses? Asking this question made us look at how we re spending the money we do have, and re-allocate it in some areas.
- What is your cost of customer acquisition? What marketing channels have paid off for you and which have not been worth it? Asking these questions led us to limit our efforts in some areas and expand others. Ads on Google and Facebook did not pay off for us . Social media – blogs and twitter – have been effective. ( Subliminal advertising: Check out our Fish Lake demo here!)
- What are your biggest personnel needs? Marketing? Software Development? Management? Have you identified people that you want to hire? If not, how do you intend to find those people?
- What are the strengths of your founders? Your staff? Are any of those people not pulling their weight? This is a question people are reluctant to ask and equally reluctant to quantify. Asking that question of ourselves has resulted in everyone taking inventory of their base camp projects and making items specific with fixed deadlines.
Now, it’s our second week as part of the Boom Startup Ed Tech accelerator and I have to say it has been an exhausting and productive time.
Getting people to invest in your company is much more than refining your pitch (although we have done that as well). I used to mock those requirements that you describe the opportunity, your solution and your key team members in two minutes or less. No more. You know why? Because it shows that you know what is truly important to your customers and what is unique about your product and company.
As I’ve said over and over the past two weeks, almost everyone here knows they should have done things like identify market segments, track results of social media efforts, call potential customers and a hundred of other things. The fact is, most founders are so busy focused on building a product that they don’t spend near enough time building a business.