by Bryan Hatfield III
Starting your own business can be terrifying at times, especially once you start actually hiring people. Before that point, it’s an adventure with a bit of scary tossed in, but mostly, it’s about you chasing your dreams. The moment you add your first actual paid employee though, it becomes about something else.
That person…the person you hired, has put their faith and trust in you. They believe in what you’re doing. They’re bought into your vision for the company and is probably excited about it. They’re also relying on you to make all the right moves to keep the company solvent. Their mortgage depends on it, and that changes the nature of the game for you. That’s why learning how to ask for (and actually get!) money from investors is such a critically important skill!
I this series I want to go behind the scenes and look at some of the key things investors are looking for. We’ll cover specific questions you might be asked and we’ll tell you the KINDS of things investors will be looking for. I will also show you the different types of investment opportunities out there. The more of these boxes you can check off, and the more of these questions you have solid answers for, the more likely you are to get funded.
Phase 1: Knowing Your Target Market
Don’t fake or fudge these numbers. That is your reality. The real world. The answer is what it is. The bottom line is, the bigger the market you’re chasing, the more likely you are to get funding. If the market you’re pursuing has revenues less than $100 million, you’re going to find slim pickings where investors are concerned. The closer you get to a billion dollar market (or bigger) the easier it will be for you to secure funding for the venture. Market size REALLY matters.
Bryan F. Hatfield III
CEO MACTO Business Alliance LLC.