We have met a lot of entrepreneurs and business owners who have become distracted from their core vision by the pursuit of external funding. The investment community, whether angel investors or venture capitalists predominantly concern themselves with startup businesses delivering technological solutions to customer needs. The opportunity for high growth is there because of the scalability of the solution. Most businesses are not tech businesses – if this includes you do not lose heart. Below are 5 reasons why you do not need external funding for your business to grow.
Business Funding – 5 reasons why you don’t need external funds
1. Proof of concept – When turning your business idea into a real business the first step has to be proof of concept – you claim that there is a market for your new product X, you’ve done your research and got your prototype ready or range of services – now go and sell to actual customers. This will achieve two things a) Prove that there is a market for product or service X and b) Provide you with some much needed sales revenue.
2. Social Media – Let’s assume that you have successfully passed through the proof of concept phase. You may not have much of a marketing budget but you do have access to social media. Why not leverage feedback from your initial customers to tell other members of your target audience about your new product X? Testimonials work well as an approach and will help spread the word about your new product X. Please note – you do need to have a good product X and to communicate it in an imaginative way.
3. Networking – Your product is viable and you are finding and attracting prospects and leads via social media. Excellent! Now go and tell more people about product X at networking events and relevant industry award shows. Your passion for product X will shine through and will be validated by your growing list of actual case studies and customer testimonials. Networking will also offer you partnership opportunities which will broaden your potential customer base.
4. Public Relations – Did product X solve a customer need that was not being solved before? Have you created a story around your company that others would want to hear? Is product X newsworthy? Using a methodical approach you may be able to secure some PR for your new product X. You could start with local press and radio ensuring that you story has an angle that will interest journalists.
5. Pivot to Profit – Sometimes your original product or service is good but your target audience may be wrong – you may have chosen a value positioning when a customer centric service position targeting more upmarket customers would be more profitable. It’s time to pivot to increase your profits.
We understand that when you are immersed in the day-to-day challenge of growing your business the idea of external funding seems attractive but if you focus on the fundamentals of your business and boot-strap your business – you will grow without it.
We are more than happy to help you deliver that growth – give us a call on +44 (0) 845 226247 or drop us an email via mail@marketingfundamentals.com to get the conversation started.
We hope you have found this information useful.
Best regards,
Marketing Fundamentals Team
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