Posts Tagged ‘Business Strategy’

When a Bizignite user completes their one page business plan / hypothesis and want to use it to raise capital, KENOVA shares this technique with them:

  1. Identify investors who are sympathetic to or "play" in the field that applies to the startup and get a contact name and email address.
  2. Craft a short (2 sentence) intro / tickler email (see sample below) with one objective and one objective only; to get the proposed suitor to ask for more information! DO NOT TRY TO SELL or SHARE ANYTHING MORE! 
  3. Be ready with:

o ​Another brief email with a link and password to the Bizignite plan
o Strategic marketing document
o Strategic sales document
o Budget with monthly burn rate
o The deal, i.e., how much funding is required and how much equity it buys

  1. Drip out the information as the investor requests it.

The objective with this approach is to measure and track interest, know where you are in the funding process and make it easier on the investor. That is to say, as opposed to dumping a 25+ page traditional narrative plan in their email inbox, but rather to give them the information in a way they can and want to consume it.

Also, keep a log of each investor and where they are in the process. We also advise our clients to continue to send the intro / tickler email until they get a response, but peronalize it, e.g., "Dear Mrs Smith, I'm sending this email again because I didn't get a response so I don't know if you saw it"

We also advise using a tool like Boomerang for response tracking. This way you will know if someone opened the email or if it bounced (bad email address).

Side note: if you're looking for an introduction via a third party, Alex Iskold has some good advice in his blog post How To Write a Forwardable Introduction Email.



Sample short intro / tickler email:

The structure of the email is:

  1. The target customer / market and the business idea
  2. The upside / opportunity, i.e., realistic potential revenue.

Dear Mr. / Mrs. ?????
New Startup Corp is focused on the growing senior and caregiving market.

NSC is an interactive educational exercise program for professional caregivers that helps them achieve rapid improvement in daily activities for themselves and those they care for.  It can be performed anywhere while requiring just 20 minutes a few times a week.

This is a huge untapped market and with just 10% market penetration (USA), we can achieve $300,000,000 in revenue. 

Please reply if you would like to know more.

Sincerely yours,

Albert Einstein


When raising money for a new business venture, you have to be ready to receive money. I.e., investors need to know that if they give you the $1,000,000 you're asking for that you are ready to spend it tomorrow, and I mean tomorrow.

You're probably wondering what this post is referring to, i.e., of course you can spend the money tomorrow, who isn't able to spend money, right.

The point I'm making is, are you ready to spend the money on the things that are going to accelerate your progress and company growth? I.e., above and beyond a nicer phone and faster computer.

For you to answer this question, the first test is can you complete your Bizignite plan in an hour or less?

(For those of you not familiar with the Bizignite plan, it's a free tool that asks you the 11 questions an investor is looking to have answered in a clear and concise manor that a 30+ page narrative plan does not do well.)

After completing the Bizignite test, you need to formulate a spending strategy and budget with timelines for expenditure.

If you don't have these items in place this blog may have answered your question "why aren't investors investing?".

What we do with our clients is create an 18 month budget of expenditures, showing the monthly burn rate (expenditures each month). Not only does this show that you've thought about how you're going to use the money to accelerate progress, but it helps the investor with their decision making progress on how they're going to release funds.

These are essential components in fund raising.