If you intend to secure external funding for your startup, you may consider seeking investment from angel investors. Angel investors are affluent individuals who provide capital for business startups in exchange for a share of ownership equity.
Angel investment serves as a first round of financing following initial seed funding from family and friends. Additionally, angels are often successful entrepreneurs, business executives, or attorneys who can offer management, leadership, and guidance to your startup.
This series of posts aims to provide insights into the criteria angels consider when investing in a startup. These posts will assist you in understanding an investor’s perspective and assessing whether they would be willing to invest $100,000 in your business. Utilize these posts as a tool to evaluate your business’s strengths and weaknesses.
Regarding funding options and methods, please refer to my post “Funding Your Start-up The Jugaad Way” for alternative and potentially less costly ways of raising capital. Regardless of your chosen funding path, it is imperative to prepare a well-crafted investment pitch that can significantly impact the success of your startup launch.
#4 Go-to-Market Strategy
Your go-to-market strategy is your actionable plan to manufacture, market, and deliver your product to the end user. It is the decisive step in becoming an entrepreneur. In essence, it involves shipping your product and generating revenue.
Once you have developed your prototype, how will you launch it? Before approaching investors, you must outline your plan to take your product to market and sell it. However, there are strategic considerations involved in this phase. There are numerous manufacturing options available today, and you must carefully select the most suitable one. Additionally, you should explore various distribution channels to reach your target audience effectively. Common distribution channels include:
– Manufacturer to Customer
– Manufacturer to Retailer to Consumer
– Manufacturer to Wholesaler to Customer
– Manufacturer to Agent to Wholesaler to Retailer to Consumer
As the adage goes, the devil is in the details. These decisions will significantly shape your company’s identity. Investors may pose various questions, such as:
– Do you intend to achieve widespread market penetration for your products and services?
– How will you implement your plan in an efficient manner?
– How will you market your product? Will you rely on an internal sales team or external channel partners?
Thrive Venture can assist you in determining the optimal market path and developing a strategic plan to achieve your goals.
– Tyler, Founder and Principal Consultant
Thrive Venture Consulting—connecting people and ideas.