Start-up Financing | February 21, 2013
Rose-Marie Almond, Toronto, ON, CYBF volunteer
A few weeks ago a friend invited me and another friend to dinner to discuss his idea for a new product. He wanted to use my product design skills and our other friends’ electronics skills to form a three-person business partnership. We left the meeting without a partnership, and a scrapped product idea. Why?
Firstly, he had next-to-no research to present. He had no idea of the size and composition of his target market; his unique selling proposition (USP) in comparison to competitors; or even his sales strategy. His defense was, “I’m not looking for investors yet.” Secondly, the more he talked the less any of us could understand his role in the business.
The idea wasn’t bad, but his presentation was poorly executed because he forgot three critical things about investors: