Thursday, February 12, 2009

Building Credibility

"Why should I invest in your company?"

Too often start ups are too busy in the day to day activities and business development efforts. When it comes time to bringing your business to the next level and seek more capital for the business, too often the human capital component is ignored.

This statement holds even more truth especially in these current economic conditions. Venture Capitalists and Angel Investors are more and more prudent with the funds they raise and into which companies they place their funds. In addition to having an innovative business that satisfies a need in the market place, a strong business plan complete to carry out your business and the bring to market strategies from your marketing also must remember investors place their money with the strength displayed by the team and people involved. And for investors remember that team experience is important but don't forget the value of hard work and Bright Young Talent!

Here's our top 5 Tips in Building Credibility:

1- Be Consistent
Make sure your team is on the same page. Nothing is more confusing or indicative to investors than providing opposing info and also be prepared for the hard questions you would prefer not to answer.

2- Focus on the Facts
Stick to the facts in your answers. If you're unsure it's better to get back to the right answer at a later time than to waver and make up something up. Remember financials are where investors will pick your business apart.

3- Set Concrete Goals
This is one of the activities that will help clearly set your business apart from others. Many successful companies will use performance metrics to chart the success of their initiatives.

4- Know Your Audience
Always know who you're talking to and a bit about them. Do your research and apply the rules of professional courtesy. Even if they aren't always respectful of you!

5- Use Online Tools
Online social media and digital marketing is quickly becoming a standard, many companies can improve their online efforts, especially to build their credibility. Use of blogs, twitter and other community sites are key to building your company and brands momentum and awareness. Don't forget the value of a good website and knowing how to use it as a helpful customer tool versus it being your companies crutch. The later of course meaning, make navigation and information easily obtainable and place tools that will assist your customers.

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