Category Archives: Best Practices

29Nov
Building an Advisory Board

Reply

Building an advisory board is an overlooked tool that is very beneficial to a business. It consists of a hand-selected group of advisors that believe in your leadership and are there for the sole purpose of providing strategic advice for your business. They are aligned with your culture and mission and are committed to your success. However, forming the perfect advisory board for you may take quite a bit of planning in order to see a strong return on investment. Do not worry though, that is why we are here to help and give you guidelines before you build your own advisory board!

  1. Know who you are and what you stand for

Complete your Values, Mission, Vision, and Strategic Plan first. You must know what you stand for, why you exist, and where you are going. You must be able to articulate this to any prospective board member.  Think about creating an advisory board composed of people who have already achieved what you are trying to achieve so that you can learn from both their successes and their mistakes. In addition, you must be able to share your target customer profiles and your competitive landscape.

  1. Goals/plan

Create a set of objectives you want your company to reach. By outlining your goals, it allows you to select members that help you reach these objectives. This also sets expectations for your advisory board members. It gives them an idea of what their role and purpose will be while serving on your advisory board. By creating these expectations, it allows you to get exactly what your company needs. The wrong advisors will be a waste of time and money and can potentially lead you down the wrong path.

  1. Choosing the right people

Diversify

After outlining what expertise you and your start-up may lack, it is time to start looking for the right people. Selecting the right advisors is just as important as selecting the right employees.  Each person should bring a different background, that way your advisory board will be able to cover every area and offer different perspectives.  For example, cybersecurity is now a critical addition to any board. Typically, you want to aim for a small group ranging from no more than 4 people. If you choose carefully then a small group of people will suffice. The smaller the better since it will make for easier communication between you and your members.

Term of Membership

It is often difficult to recruit advisory board members: it is always more difficult to terminate their membership. Advisory board members tend to get comfortable with their positions and take initiative to remove them as personal criticism. Therefore, it may be useful to appoint members to a specific term (one, two, or three years) so that an active step has to be taken to renew membership, rather than to withdraw it going forward. This issue might be particularly important when an advisory board is first being established.

Mentors

Members of an advisory board are composed of people who truly care about the success of you and your company. They have no legal obligation or equity in the business, they act only as your mentor and their main goal is to give you advice. With that being said, you will want to seek people you know within your professional network. This way they will be more willing to mentor you. However, be careful in choosing friends or family, as they may not always give you the most honest advice. Not to mention having friends or family on your advisory board may result in conflict/relationship issues that you will want to avoid. You need people who will be brutally honest and willing to challenge your ideas in order to bring different perspectives to the table.

While reaching out to people within your professional network may be easier, you should also aim to seek people outside your network. Finding members of higher stature might be more difficult but extremely beneficial for your company. They will add credibility and this will play an important role when your start-up is in the early stages of funding. It will give your company some traction, which is crucial in the development of any start-up. Not only will it add credibility but also it can expand your professional network and form contacts that can be very useful in the long term.

  1. How to find mentors

At ProMontreal entrepreneurs, we offer a mentorship program where anyone part of the Jewish community can apply and we will connect you with the perfect mentor for you. Over the years, we have connected with successful entrepreneurs and lawyers who are eager to see start-ups succeed. If you check out our mentors on our website, you will find a list of them on the page already.

  1. Compensation

It is important to remember that the people on the advisory board have no equity in the company and are merely there to guide you because they want to see your company succeed. In the early stages of your business venture, it’s a good idea to reward them with dinners, entertainment, etc. It does not need to be a lot but still something to demonstrate your gratitude for their help. As your company progresses, then you will want to think about higher compensation, maybe even a salary but that is all entirely up to you.

You may not have all the expertise in any business venture you dive into but that is normal. Advisory boards can be helpful and fulfilling, or they can be a waste of time. In the end, you get out of them what you put into their creation, development, and operation. That being said, there are many tools to help you realize your vision so do not be afraid to take the risk.

29Sep
How Small Businesses Can Promote Themselves on TikTok

Reply

How Small Businesses Can Promote Themselves on TikTok. You might be wondering if an additional social media page is necessary for your small business and if promoting your business on Tiktok can help. TikTok appears to be more of a platform for funny lip-sync videos than a place to market products and services. However, there is a lot of opportunity for small businesses and new brands to use TikTok to reach their target audience in a fun and creative way.

Let’s go over some ideas and examples for the material you may share on TikTok to help promote your small business.

Videos of daily activities.

Firstly, posting videos of your company’s daily operations is a great way to start. These videos show visitors how work is done there. If you take this recommendation, you should create a DVD that details your company’s typical activities and focuses on the tasks that are considered to be the most vital. As a result, this will help your customers understand what it’s really like to be a small business owner. 

Highlight your staff.

Employee spotlighting gives your brand a face and showcases the people behind your products and services. Can each member of your team make a video introducing themselves? Or are you a family-owned company? Give your customers a chance to meet the individuals that run your company.

Inform your audience.

On TikTok, you can provide material to your audience that educates them about your industry or expertise. If you’re committed to learning and helping others, you’ll gain credibility, and people will return to you for your honesty.

Share content that reflects your brand.

Essentially, content that demonstrates a brand or business’s values performs best on social media and has the third-highest ROI. In addition, customers are more aware than they have ever been of the charitable organizations that the companies they favor provide financial support for. As a direct result of this increased awareness, customers factor in this information when making decisions about what goods and services to acquire from those businesses.

Considering this, demonstrating your brand’s values on TikTok is an effective way to engage your audience. Thus, people who share your beliefs will take note, and you may be able to convert them into clients.

Idea.

Was there a particular event or circumstance that inspired you to develop the concept for your business? How did you think about your little business?

Production process.

Demonstrate to customers the process of making your products. It shows your commitment to creating value by displaying the time, effort, and attention you put into your work.

Product How-To

Have an excellent procedure for producing your products? With the help of a brief instructional video, show your customers the process of making your goods and services.

Answer Questions

Above all, a great way to engage your audience and develop relationships is by responding to questions. For instance, you can use TikTok’s built-in Q&A function or make videos that answer customer questions.  

Protip: use this as a means of understanding the issues clients are having with your business. Particularly, if the same questions are coming up, you may need to update your FAQ page or add new information to your website.

Demo’s

Lastly, small businesses can utilize video to teach customers how to use their items properly.

The video suggestions above are all great tips on how small businesses can promote themselves on TikTok.

21Aug
How to Growth-Hack Your Startup to Success

Reply

How to growth-hack your startup to success. The most crucial area of marketing for start-ups is probably growth-hacking. It provides a marketing framework that may generate a high return on investment with few resources. This is essential for early-stage start-ups due to their limited access to resources.

The core foundation of growth-hacking is virality. As such, if you want to get good results, you must count on those who hear your message to share it with others. While a variety of growth-hacking strategies can assist you in becoming viral, the fundamental ideas are what matter. Below you will find key ideas on how to growth-hack your startup to success.

1. Promotion and development go hand in hand

The typical corporate structure and the division of labour in most traditional organizations create a clear divide between tasks like product development, marketing, and design. However, as a result of this, small start-ups can suffer. One of the leading causes of startup failure is premature scaling. A great example of this would be pouring part of your limited resources into a product before product-market fit.

Growth-hacking can help with this since it doesn’t view startup marketing as something that exists in isolation. Instead, it views the creation and popularization of a product as a whole and it makes use of contemporary digital resources to accomplish this.

Being flexible is one of the advantages of startups over a large company. When a product’s level of complexity is still low, tweaks are simple to make.

So, if the item you produced is difficult to sell, the solution from a growth-hacking standpoint isn’t always to “sell ” it harder or in a different way. Instead, it may be beneficial to return to product development mode and ensure that what you are selling addresses a real need for a real set of people. When you achieve product-market fit, marketing your product to these customers should come naturally and without effort.

A repeating cycle of creating, selling, getting feedback, reiterating, and reselling leads to a better product and greater growth.

2. Create something worthwhile to spread

Even if a product is excellent, this does not necessarily mean that consumers will be eager to spend their social capital promoting it.

You typically need to provide people with a bigger incentive to do this in order to get the desired result.

One of the best examples is Dropbox’s referral program, which rewards customers with more storage space for introducing friends. Dropbox increased by 3900% with the aid of this program.

Moreover, there are various approaches that can help you get the same result. For instance, if you’re conducting a closed beta, giving users a limited number of invites to share with their friends can boost the perceived value of each invite and generate a sense of scarcity.

The consumer’s motivation for spreading your content should be built into the product, regardless of the strategy chosen (or piece of content). If your K-factor is greater than 1 (i.e., the average consumer recommends your product to more than one additional person), your growth rates will start to compound very quickly.

3. Put conversion and retention first

Finally, your product must encourage, but also capture and profit from ever-increasing popularity if you want to achieve virality.

A skilled growth-hacker is not deceived by meaningless statistics like website visits and share counts. These things are wonderful, yet they are only surface-level. The attention you can attract is ultimately important, but only if it results in actual business growth.

In conclusion, a startup founder must have a growth-hacking mindset because it is crucial for both product development and marketing.

Focus on bringing in and measurably keeping clients rather than developing your brand. Use a scientific approach with exact tools and quantifiable outcomes. Continuously improve your product, reach your target audience, and incentivize your consumers to stay and spread the word.

7Aug
How to Craft an Investor Update

Reply

Crafting an investor update can, at first glance, seem like a challenging endeavor, but let’s demystify the process. As a budding entrepreneur, understanding that this task is a crucial element in maintaining a transparent and symbiotically beneficial relationship with your investors is key. It’s not merely a corporate requirement; it’s an exceptional opportunity for you to pause, look back at your journey, pinpoint any stumbling blocks you’ve encountered, and envision a path forward. This guide is designed to help you navigate this seemingly complex task with ease and efficacy. 

We’ll kick things off by digging into why these updates are so important. Regular and clear communication with your investors provides a peek into the engine room of your business. This allows them to spot potential hurdles and golden opportunities, sometimes before they even become apparent to you. This proactive participation not only keeps them actively involved but also engenders a feeling of mutual advancement and success. Moreover, there’s compelling data backing up the importance of these updates – according to research, startups that offer regular investor updates are three times more likely to receive additional funding from existing investors. So, it’s crystal clear; crafting effective updates isn’t just a polite gesture, it’s a strategic move that could positively influence your venture’s durability and expansion. 

Understanding the significance of these updates, let’s delve deeper into their composition. Your guiding principles should be simplicity, brevity, and clarity. An investor update need not be a lengthy or elaborate document; in fact, a well-crafted update can be as succinct as it is insightful. Here’s a suggested framework to help you structure your updates: 

1. Highlights: Kick off your update by sharing the positive strides you’ve made since your last check-in. These could be critical milestones reached, new clients brought on board, innovative features unveiled, or any other accomplishments indicative of forward momentum. Remember, your investors are looking for signs of progress, so take this opportunity to showcase your wins. 

2. Lowlights: This is your chance to demonstrate your transparency and resilience. Share the difficulties currently on your plate, and elucidate the strategies you’re utilizing to surmount them. This forthrightness not only bolsters trust but also exemplifies your proactive approach towards problem-solving. 

3. Asks: A golden opportunity lies here to leverage the collective wisdom and far-reaching networks of your investors. Whether you need introductions to potential customers, help with recruitment, or advice on a critical issue, make your requests here. Remember, specificity is crucial – the clearer your asks, the better your investors can assist you. 

4. Thanks: A simple but essential gesture – acknowledge the investors who’ve lent a helping hand with your previous asks. This not only promotes active participation but also nurtures a feeling of community and shared victory among your investors. 

5. Customer Story: Add a vibrant splash of human interest by incorporating a compelling customer story. This breathes life into your product or service, showcasing its impact in the real world and resonating emotionally with your investors. 

6. KPIs: Wrap up your update with key performance indicators, restricting yourself to five or six vital metrics. These could be revenue figures, headcount, runway, or a “north star” KPI that suggests future earnings or traction. 

As for how often these updates should be sent, it largely depends on your startup’s stage. If you’re in the very early phases, consider weekly updates. As your venture finds its footing and matures, transition to monthly updates. Once you’re a growth-stage company, a quarterly rhythm usually suffices. Investor updates aren’t mere paperwork; they’re a fundamental aspect of demonstrating to your investors that you’re an engaged entrepreneur and a responsible custodian of their capital. It’s a mechanism that builds trust, stimulates open communication, and ensures swift intervention can be taken if things are veering off course. Your investors are not just check-writers; they are partners on this exhilarating journey. They can provide invaluable help and guidance when they’re in the loop, regardless of whether the news is upbeat or somber. 

So there you have it. Crafting investor updates isn’t just a mundane task; it’s a process of introspection, communication, and active engagement. It’s about showing your investors that you genuinely appreciate their partnership and are dedicated to keeping them involved in your voyage. With these guidelines, you’ll find this task less intimidating and much more rewarding.

22Jun
How to Reap Rewards with Instagram Captions

Reply

How to reap rewards with Instagram captions. One of the most crucial tools you have for boosting audience engagement on Instagram is the caption. Your followers may be drawn to your images and videos, but it’s the caption that persuades them to share, like, and comment on your post. Your Instagram captions can also boost sales, expand your social media reach, and help you gain more Instagram followers.

You might be wondering, how can you be certain that you’re utilizing the proper captions to foster accomplishment? Here are the tools you need to learn to reap rewards with your Instagram captions.

1. Grab their attention right away

Like most social media platforms, Instagram is all about quick exchanges of information.

On a regular basis, your customers scroll through dozens of images. Since Instagram condenses your description to just three or four lines, you must grab their attention quickly if you want them to stay on your page.

On the news stream, you have even less of a chance of grabbing your reader’s attention because only the first phrase of your caption will be visible. As such, your opening sentence should be written to instantly capture the reader’s attention by doing the following:

• Pose a question: your customer will want to know if you have addressed it.

• Include visuals: make your brand’s personality pop out by using emojis.

•Make a statement: say something that you know will catch the attention of your audience.

• Introduce your call to action first: as soon as a customer views your material, what you want them to do should be clear. Keep in mind that concise lines will attract your audience’s attention more quickly than most wordy Instagram captions. Keep it straightforward and to the point to get your message across.

2. Be a call-to-action master

Your call-to-action (CTA) is the most crucial component of your Instagram caption. It’s how you encourage your followers to interact with your page by leaving a comment on your post or clicking the link in your bio.

However, it is important to refrain from including too many CTAs in a single post. Consequently, having too many CTAs can take away from the caption’s clear purpose. Instead, you should precisely highlight what you want your customer to do for each of your Instagram posts. Below are some examples of the intentions of Instagram posts. Do you want the reader to:

  • Visit your website?
  • Click the link in your bio?
  • Invite their friends to a post?
  • Shop for a sale?
  • Subscribe to your newsletter?
  • Participate in a giveaway or contest?
  • Save your post for later?
  • Find the link from your stories?
  • Send you a DM?
  • Chat in the comments?
  • Leave an (insert emoji) if they agree?
  • Tag someone?

Try a few different possibilities because it might be challenging to predict which CTA phrases will result in the greatest response from your audience. You can choose which call-to-action phrases are best to employ in the future by evaluating your call-to-action phrases’ by their levels of engagement.

3. Tell stories

Spice up your Instagram captions with some storytelling.

A compelling narrative will strengthen your customers’ emotional connection to your brand and help them understand the advantages of your product or service.

When incorporating a compelling narrative into your captions, you should:

  • Show emotion: grab the reader’s attention with well-written descriptive information that is intended to help them envision or better understand the products you are selling.
  • Use appropriate language: find, use, and maintain the voice tone that works with your audience. Your stories will be more relatable if you use the same language as your intended audience.
  • Try being authentic: make your brand look more genuine by discussing your personal experiences. By sharing your personal experiences, you can show your audience that you are more than just a nameless organization.

4. Use sensory language

Another way to reap the rewards of Instagram captions is to find ways to connect emotionally with your followers, such as using sensory language. An Instagram account must have the appearance and feel of a personal journal, with authentic, moving, and engaging content, in order to successfully appeal to its followers.

Thus, you should write Instagram captions that will enable users to thoroughly immerse themselves in the experience you’re sharing, whether you’re a large corporation or a little business. Using sensory words will allow your content to be experienced through sight, sound, smell, taste, and touch.

The types of senses you should consider and appeal to, include:

  • Visual: concerned with sight, colour, form, and appearance
  • Tactile: concerned with touch and abstract conceptions
  • Smell: concerned with smells and how they affect our emotions
  • Taste: concerned with the things we can taste and experience
  • Motion: concerned with movements and how readers experience words
  • Auditory: concerned with hearing, noises, and even music

5. Utilize hashtags

Lastly, without the appropriate hashtags, Instagram captions are worthless. Hashtags on Instagram, as on most social media platforms, make your content searchable and guarantee that the relevant customers can find you. The simple act of including hashtags in your captions can greatly increase your account reach.

You can add a lot of important Instagram hashtags at the end of your captions, but it’s also worthwhile to think about how you can weave them in naturally with @mentions of relevant people.

Keep in mind that the finest Instagram captions typically include a variety of hashtags. You must choose trending ones that are attractive to your intended audience, but it is also important to consider specialized and more focused hashtags.

By creating your own custom hashtags, you may even entice your followers to participate and post user-generated content in your Instagram comments. A strong brand hashtag will promote your business, especially if you utilize it in conjunction with a contest or giveaway. For instance, you could offer a prize to everyone who shares a photo of themselves using your product with the hashtag associated with your business.

Keep an eye on what’s popular in your market, as well as the hashtags your competitors and brand influencers are using. This can help you if you need more ideas for hashtags to employ.

Make changes to your Instagram captions

It’s simple to ignore captions on a visual social media platform like Instagram. However, if you’re not maximizing your Instagram captions, you can be passing up important opportunities to engage, connect with, and convert clients. Instagram captions can be an essential part of growing and maintaining a business.

9Feb
The Types of Investor Funding

Reply

investor funding

When it comes to funding a business there are many options. Before you decide to seek funding from investors, it’s important to know that there is more than one type of investor to fundraise from. So, how are they different, and how are you going to do it?

There are three basic types of investor funding: equity, loans and convertible debt. Each method has its advantages and disadvantages, and each is a better fit for some situations than others. Like so much else about the fundraising process, the kind of investor-based fundraise that is right for you depends on a number of factors.  The stage, size and industry of your business. Your ideal time frame; the amount you are looking to raise and how you are planning to use it; as well as company goals for both the short-term and long-term.

EQUITY

Pursuing an equity fundraise means that, you are buying an ownership stake. Equity investors provide capital  in exchange for a percentage of the profits  (or losses).

Equity is one of the most sought-after forms of capital for entrepreneurs. In part because it’s an attractive option: no repayment schedule and high powered investor partners.

How It Works

At the outset of your fundraise, you set a specific valuation for your company. Based on that valuation and the amount of money an investor gives you, they will own a percentage of your company. For which they will receive proportional compensation once your company sells or goes public.

When to Do It

Not every business will start generating income as soon as it launches. Spending a few years in R&D doesn’t mean your company isn’t a viable business proposition. Internet companies, for example, are notorious for going years in operation without even attempting to charge their customers. If you’re going to need a lot of operating cash to sustain your business before it starts turning a profit, equity investments are the only form of capital that makes sense.

When there is no collateral

To obtain a loan, you must have something to provide as collateral in the event that things do not go as planned. If you don’t have something of value to give loan providers as collateral, your only real choice for funding is to find equity investors prepared to take a risk on your idea with nothing to “sell” if it fails.

When you can’t possibly bootstrap

While home-growing your company from your garage or spare bedroom bit by bit may not sound as glamorous as hitting the ground with investors already in your lineup, most investors will expect you to start there before they invest. But some businesses  require a massive amount of capital just to get off the ground. In those cases, you have little choice but to go directly to equity.

When you’re positioned for astronomical growth

Equity capital tends to follow businesses and industries that have potential for massive growth and exponential paydays. Your local coffee shop concept may do really well, but it doesn’t have the potential to become Facebook. Therefore,  you’re not likely to attract many equity investors. On the other hand, if you’re looking to build the next Starbucks chain, chances are investors will be very interested in jumping onto your bandwagon on the road to IPO.

Consider the following:

Your options are whittled down when you have equity:

When it comes to the future of your business, going the equity route drastically limits your options. One thing is essential to equity investors: liquidity. That means they won’t be happy with a percentage of your annual income. They’ll assume that once you’ve accepted their money, your company’s endgame will be a sale or an IPO. They’ll want guarantees that your idea will sell and sell big before they invest in the first place. But, before you go the equity fundraising path, make sure that this is indeed your vision.

For high risks, equity investors expect big rewards:

Many entrepreneurs would take advantage of the fact that they could walk into a bank and get a loan to fund their business idea. Banks, on the other hand, are extremely risk averse and only want to provide loans that they are certain can be repaid. That’s where equity investors come in: they’re willing to take chances that lenders aren’t willing to take. However, there are two sides of that coin: an equity investor isn’t looking for a quick return on their investment. They’re taking on a lot of risk in exchange for a lot more reward, and they’re going to want to see results.

There’s a lot of competition for equity investments:

The number of people searching for equity investors far outnumbers the number of checks being written. In a given year, most equity investors will see hundreds of transactions before funding even one. Obtaining an equity investor is extremely difficult!

Raising equity capital takes time:

Finding the right investor will take anything from 3-6 months. That doesn’t include the time it takes to finish the final legal papers that release the funds. If you and your company are in a hurry, equity funding may not be the best option.

When it comes to relinquishing equity, it is a one-way path;

You can’t get your equity back after you’ve given it up. It’s extremely unlikely for an entrepreneur to repurchase the equity they gave away early in the company’s growth. If you’ve sold a certain amount of your business—say let’s 40 percent—you won’t be able to sell it again. Whether you like it or not, once you sell equity to an investor, they become a part of your life. As tempting as it may be to shake hands with anyone willing to write you a check, it’s critical to seek out investors with whom you feel comfortable working for years to come.

LOANS

Loan or debt-based fundraising is the easiest to understand: you borrow money now and pay it back later, with an established rate of interest.

Debt is also the most common form of outside capital for new businesses. While angel investors and venture capitalists get all the big headlines for funding exciting companies, it’s the debt providers that are behind most of the investment dollars.

How it Works

When you opt for debt-based fundraising, you specify the interest rate associated with loan repayment in your fundraise terms. Additionally, you may include an estimated time frame for loan repayment.

The other critical component of the loan puzzle is collateral: something tangible, sellable that lenders can take from you if your business fails and you are unable to repay your loans. The more collateral you have, the more likely you are to secure substantial financing.

When Do You Do It?

There are a few situations where debt, like equity, is the best choice for funding your business.

When you don’t require more than $100,000

Debt raises are well-suited for small amounts of capital. Giving up equity makes little sense at such small amounts; and with smaller goals, there is less risk—for investors and entrepreneurs alike—than when large sums are involved.

When you urgently need funds

Is there a market opportunity for your company that you would miss if you do not raise money immediately? Then you’d be wise to avoid equity—a procedure that is notoriously time-consuming. Debt increases pass more quickly, increasing your chances of having the money you require when you require it.

When there isn’t any equity available

If you are unable or unwilling to begin offering equity, a debt raise may be the best course of action. Many business owners are hesitant to give up control of their company and a straightforward debt raise offers the appealing benefit of retaining ownership and control.

Consider the following:

Collateral is king: Contrary to popular belief, banks and other lenders do not profit handsomely from a single loan. As a result, they say “yes” to only those transactions in which they are certain they will not lose money. Their sense of security is derived from collateral.

Explore your options: When considering funding options, it’s critical to thoroughly investigate all of your debt options to determine what’s available and from whom. Our approach to debt is as follows: it is always preferable to have financing and not need it than to require financing and not have it!

CONVERTIBLE DEBT

Convertible debt is essentially a hybrid of debt and equity: you borrow money from investors with the understanding that the loan will be repaid or converted into shares in the business at a later date—for example, following another round of fundraising or reaching a certain valuation.

How It Works

At the time of the initial loan, the specifics of how the debt will be converted into equity are established. Typically, this entails offering investors some sort of incentive to convert their debt to equity, such as a discount or warrant in the subsequent round of fundraising.

If investors are offered a discount-the most common are 20% and 25%- it means they are able to convert their loan at a reduced rate of 20% or 25%. For instance, if an investor lends you $1 million to you in the first round, they would expect to get $1.25 million in return.

Likewise, a warrant is also expressed in percentages—for example, 20% warrant coverage. Consider the same $1 million case with 20% warrant coverage. In the subsequent round, the investor receives an additional $200,000 (20% of $1 million) in securities.

You will also need to set an interest rate, just like you would for a straight debt raise, to reimburse your investors until they convert, as well as those who do not convert.

Additionally, convertible debt fundraises typically have a “valuation cap,” which is a maximum company valuation at which investors can convert their debt to equity, after which they will have missed the boat and will have to settle for having their loan repaid or reinvesting in the company on new terms. However, over the last few years, an increasing number of companies have chosen to leave their convertible debt offerings uncapped.

When To Do It

For start-ups that are not yet prepared to evaluate the company, a convertible debt fundraise makes the most sense either because it is too early to determine one, or because they believe the value will be much higher later.

If you believe that the valuation of your business may well be skyrocketing soon, but you can’t wait and raise your equity straight away later—the ability to offer convertible debt offers you the money you need right now while enabling you to protect your equity’s value later.

Things to Keep In Mind

The best of both worlds; Convertible debt offerings offer investors the best of both worlds. For the time being, they have the debt structure’s exit strategy and the associated security; however, they also have the potential for a discount on your equity if they choose to convert. Additionally, investors get to observe how your business performs, which enables them to gather additional information and determine whether they like your direction before jumping on the equity train.

Know what you’re doing:  Because convertible debt raises are by definition more open-ended than debt or equity, it’s critical that you can articulate both the rationale for your decision and an expectation of how things will unfold, both for yourself and for the investors.

Conclusion

Prior to committing to a structure for your fundraise, it’s prudent to delve deeper into the specifics of that structure—or, better yet, thoroughly explore each option.

Avoid becoming frustrated or discouraged: this is a large question to address, and even experienced entrepreneurs are not comfortable with all forms of capital. The more informed you are about your options, the better equipped you will be to make the best decision for you and your business, and the more likely your fundraising efforts will succeed.

19Jan
How to sell as a Founder

Reply

Even though you have a great product, it WON’T sell itself. Every founder will have to sell their product at the very early stages and often times don’t have the skills or practice to do so. It is not an easy task, and it is the most crucial part for every company. What’s the point of putting your blood sweat and tears into a product you can’t even sell. So next time you’re negotiating with your first few customers , remember these 10 tips to make sure you close every deal.

TIP #1: Be Passionate

It should be a given that you are passionate about your product otherwise you might be in the wrong business. Share this passion with your clients, nobody is going to trust a product that its own founder is not passionate about, you will lose clients immediately. Show them how much you care about believe in this product and you’ll gain their trust.

TIP #2: Get to know the customer

Closing a deal is more than pitching your product; it is about connecting with your customer and getting to know them and their needs. Build relationships before sales, people are more inclined to buy from people they like. A Linkedin study shows that a salesperson who creates connections with their customers create 45% more opportunities. Ask the right questions and have conversations try to find things you can relate to such as hobbies, sports, kids whatever it might be. Be viewed as a person who is genuine and wants to help rather than just sell. They might not need your product but if they like you they will want to support you.

TIP #3: Don’t oversell

Creating trust and being transparent is super important with your customers. If you break their trust then you’re building a bad reputation for you and your company. Creating a good reputation is especially important for companies in the early stages of their business.  Now the worst thing you can do is make promises you can’t keep. Do not commit to things you can’t deliver, its dishonest and will break the immediate trust you have with a customer.

BE TRUSTWORTHY

TIP #4: Learn from others

Get ahead of the competition. Check out what your competitors are doing to sell their products, what’s working, and not working with their customers, use this as leverage.  Explore products that you might buy and see what those companies are doing. Do your research and learn from other peoples mistakes or other peoples wins.

TIP #5: Improve your pitch

Giving a great pitch is key in a startup. It is not something that comes easy, it takes a lot of practice to master it. Practice it repeatedly until you can amaze your audience. However, don’t focus solely on pitching a presentation, remember to connect with your customer as well.

TIP #6: Persevere

Do NOT give up easily and do not take no for answer! Follow up with your customers without being too pushy.

TIP #7: Know you will not close all deals

Do not be too hard on yourself if you don’t close the deals, it’s going to happen. It’s important to not let that get you down and to keep pushing through it. Do not give up easily just because you lose a few deals it’s all part of the process and you’ll only learn from your mistakes.

TIP #8: Referring to competitors

As mentioned, being trustworthy and transparent is key with new customers. Refer to your competitors and show your customer how your product is so much better than the rest. Do not be afraid to highlight how you’re company differs and even if your price point is a bit more than the competition, stick by your products worth.

TIP #9: Fire bad customers

Talk to the right people, and don’t waste your time and energy in customers who have no use or interest for your product. Focus on the target market and find the right people to sell to. Spend your time with prospects who are ready to buy your solution.

TIP #10: Celebrate the wins!

Celebrate every new customer! It’s easy to get too ingrained in the daily grind of sales and building a company and forget to celebrate the wins. Celebrate every win with your co-founders and your team.

15Dec
How to use Social Media Data

Reply

A great way to build a top-notch marketing plan is to use social media data. It’s not just about of a few items being shared and crossing your fingers that it works. You will need to formulate a well-thought-out social media content plan to grow your brand. Here are some tips that will support you on your way.

media

Set Goals

Firstly, you need to come up with a set of goals that you would like to achieve for your company. This will be the basis of creating a marketing strategy that aligns with your goals. As tempting as it is to imitate a business that is comparable to yours, you need your own marketing plan as everyone’s business goals are different.

For example, say you are running a sustainable cosmetics business. Perhaps someone like you wanted to increase Facebook’s brand recognition by concentrating on a vegan audience. And in their target, they succeeded! So, you do the same thing. But, there is a small problem you didn’t think about, there is beeswax in your products. The vegan community then shuns you for selling a non-vegan product. And to top it off, you get a negative reputation for misinformation. This is why creating your own goals will help you plan a better strategy. Just remember to be specific and tailor your objectives.  

The wonderful part about setting goals is that it will help you decide what your values are. Values may get a little bit lost when setting up a brand. So, this is a perfect chance to go back to the origins and see why the organization was set up.

Creating your own objectives will encourage you to prepare a better approach. A major part of setting goals is that it will assist you in deciding what your values are. Values seem to be really, well, respected on social media, so look at why you set the company up in the first place.

Know Your Audience

A big part of boosting your content is to sell it to the right audience. This links in with planning your goals and staying on-brand, too. It’s not just a waste of time to try to share the content with everyone and anyone, but it is also a waste of money as you will not have any returns on your investment.  For example,  if you make and sell aquarium decorations there would be no point in making a video of an aquarium featuring your decorations in it and then posting it to a page dedicated to dog care.

Just because it’s related to pets, doesn’t make it relevant.

The first step is to research your audience and know them inside out. Collect as much qualitative data as possible. Join many groups that discuss the thing you are selling. It doesn’t matter what type of product you sell, there are many suppliers out there. No matter how niche your product is, there will be some sort of group relating to this. Facebook marketplace is the perfect place to start.

Knowing your audience inside out will help you create content across the board. Whether you are writing a blogpost, social media posts, or even something else entirely, it is important to stay on-brand for your content.

Analyze Content

Now you need to see if your marketing strategy put in place is working, and if its not working tweak your strategy. Examine what content is working best at engaging your audience. A lot of analytical tools are available and free to use, like on Facebook for example you can track the number of people interacting with your content and track its performance. Using a forum for social media management and digital asset management (DAM) helps you to look at back-end specifics. This is a perfect opportunity to check if the results are consistent with your objectives. You can also take this chance to follow individuals that are important to you who share your content.

Engage and Respond to your Audience

People love to feel connected, that’s the whole point of social media. Engage and respond to your audience, it will allow them to build a connection with your brand. This is also an easy way to get customer feedback right away. Listen to what they have to say, its an opportunity, if necessary, to build a great customer service experience.

Develop your Brands Tone of Voice

Like we said before building a connection with your audience is key and developing a voice for your brand is also key. To develop a tone of voice for your brand, you need to analyze your target market and see what will resonate with them the most. Once your set on that, addressing situations and sharing content is your way of  establishing a voice for the brand. For instance, claim you are a brand of vintage fashion and share to an upcycling blog. Here, you see the points that people engage with and get the chance to promote your brand. A strong tactic is to address situations for the chance to resolve their frustration and look trustworthy to an audience of thousands. If someone writes a comment, answer it, even if it is a negative one.

Use a Content Calendar or Sharing Platform

Use one platform to share all your content to all your social media platforms,  it will make things a lot easier and save you a lot of time. Since Facebook and Instagram are now connected, they have built in publishing tools that allow you to schedule your posts for both platforms simultaneously. You can schedule when posts go out and this will help you keep your social medias active without worrying everyday to make a posts. This will also leave more room for you to analyze your audience engagement with the posts and keep an eye out on current events and developments in relevance and e-commerce.

 From setting goals to engaging, there are many ways to use social media and the data you get from it, to boost content. Just be aware that content will not be a success on all platforms. That’s because each site is designed for different audiences. If there is content that isn’t being shared as much, try changing the language, picture, or title. Small changes can make a huge difference.

Remember, marketing for your brand is more than just creating content, its about engaging with your audience and building connections with them. Social media is a great place to do this and if you follow these tips you’ll be able to leverage this.

3Nov
Marketing Headliners for every Startup

Reply
headliners

Writing a great headliner is difficult, especially for your own startup. Everyone wants to be the next Apple or Nike and create inspiring marketing. However, as a startup you shouldn’t focus on creating inspiring headliners. Instead focus on simple and functional marketing. Startups can’t play by the same rules as established brands when it comes to marketing, it just won’t work. Before you sit down to write your next big marketing headliner, know these tips to be sure you get a high conversion rate every time.  

Let’s start of by looking at the 4 best performing headliners:  

  1. “You could be due a mileage refund. Find out if you can claim for the last four years”-Mina 
  1. “Photo Books in 5 minutes”-Popsa 
  1. “Cook Restaurant Quality Meals at Home”-Simply Cook 
  1. “Increase App Store Conversions and Pay less for Every Install”-Storemaven 

Straight away, we notice that these headliners don’t sound like the conventional marketing we see every day. They aren’t inspiring or clever. However that’s the key, it doesn’t need to sound like marketing at all. Boring and functional is what you’re aiming for. I know it’s hard since as a founder we all want to create the next “Just do it” however as a startup you can’t compare yourself to these big brands.  

If we examine the famous headliner “Just Do It” almost everyone in this world would know it’s Nike’s brand. This headliner has had so much success because Nike has spent over 40 years building their brand. Everyone already knows what they do so they have earned the right to create inspiring marketing. But as a startup, nobody knows who you are so you can’t do that just yet.  

Its all about what your customer can do

Before you can inspire, you must first inform people about what you do, but more importantly, your marketing must convey what THEY can do. But what is the difference? A successful marketing message doesn’t talk about the product but talks about what they can help people achieve. With this in mind, here’s a tip on how to achieve this. Write a headliner and then insert the words “Now you can” at the beginning of it. Ask yourself, how does it sound? Does it flow well or is it awkward? For example, let’s look at the previous headliner “Cook Restaurant Quality Meals at Home” . If we insert “Now you can” we get “Now you can, cook restaurant quality meals at home”. This is an example of a good headliner because it focuses more on the customer rather than the product. It clearly shows what the company can offer to its customers.  

Let’s compare this to a bad example, “The all-in-one flexible HR software”, if we add the words “Now you can” we get “Now you can, the all-in-one flexible HR software”. This phrase doesn’t flow nicely and it shows that its more focused on the product instead of what the customer can do, which is what you don’t want.  

When writing a good headliner, you need to think of what is your customers “now you can?”. What are the customers struggling/hoping they can do? That will make a great headliner. As a startup, these types of headliners will see 5 to 10 times more conversion. Be sure to know who your customers are and what they want before you attempt marketing to them, this way you can find the perfect “Now you can” promise.  

9Sep
Financial Mistakes to Avoid for Every Startup

Reply
mistakes

Financial management is a challenge for many small business owners. As a business founder, it is your duty to ensure that your company grows and thrives in the most efficient manner possible. However, if you’re not cautious, you may wind up making expensive errors. A recent study shows that in the first year 4% of Canadian businesses fail and that percentage rises to 30% in the fifth year. In Canada, 7000 businesses go bankrupt every year. A lot of different factors lead to this failure but poor financial planning is one of the main causes.

A lot may go wrong, from capitalization problems to budgeting to incorrect accounting procedures. Whether the company is just getting started or has already made it through the first few years, sound financial management is essential.

To avoid financial catastrophe, stay away from the following frequent blunders:

1. Separating personal and business accounts

Many entrepreneurs will fail to open separate business accounts and use their personal accounts. When first starting it out, it may seem easier to just work from your personal accounts, however this will become difficult to maintain your business budget and expenses. It’s important to create separate accounts so you can effectively monitor your businesses finances.

2. Poor tracking expenses

At the early stages of a startup, there may not be that much capital to invest for growth, however it’s important to keep track of every expense. You need to have a control of debt to avoid digging yourself into a debt hole that’ll sink your business.

3. Sticking to a Budget

This is the most crucial part of financial management. It will allow you to not spend more than what’s coming in. Sticking to a budget will protect your businesses sustainability and it’s a good way at addressing resources.

4. Business Credit

In todays world, credit score means everything. Having a bad credit score will impact your financial management tremendously. For a business, a bad credit score will cause a lot of difficulties to obtain loans which is imperative for a business growth. Not only is maintaining a good business credit important, but personal credit will also still have an impact on your business. For startups, since the business is still small creditors will look at personal credit scores of the shareholders and determine if they will grant the credit. A bad credit score ruins your credibility in terms of your financial management which is not a good look for a startups founder.

Different types of business credit:
  • Business credit card
  • Seasonal commercial loans
  • Term loans
  • Installment Loans
  • Business Line of Credit
  • Business Taxes

A lot of founders tend to be confused about business taxes. When first starting out, you should seek professional help in order to avoid any mistakes. A small mistake can end up becoming costly to your company and you don’t want that at the early stages of your business. Make sure to file your taxes on time, monitor due dates and regulations.

These small mistakes can easily slip under the radar but will end up costing you big time. So be sure to stay away from these common mistakes to keep your small business a float for a long time!