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  • #999877
    Calcul8or
    Participant
    • Total posts: 469

    Hi Everyone,

    I’d appreciate some advice from anyone who’s been down this path before. I know there are various websites out there that I can post pitches etc on, to try and attract the attention of angel investors, but I’m wondering if there are any “conventional” means out there that don’t require me to put on a clown suit and do a song and dance act. I’m not very hip, so I wouldn’t be doing anyone any favours by pretending I am. All I’d really like to do is explain the reason I need funding, let them do their due diligence and then get an answer.

    Also, back in the days of my corporate life, I worked for a company that got a couple of investors on board, and that was before investor websites or the term “startup” even existed. It was all a pretty black and white process as far as I could tell, and that’s what I’d like if at all possible.

    As this is the first time I’m doing anything like this, I seriously do not have any idea where to start or who to approach. I think I remember hearing somewhere once that speaking to my Accountant might be a good starting point, as they supposedly are linked to investor networks. I’ve never discussed it with mine, and I’d really like to avoid making a fool of myself with them if I’m wrong.

    So, any tips?

    Cheers,
    Shail

    #1221711
    Paul – FS Concierge
    Moderator
    • Total posts: 3,117

    Hi Shail,

    Look for communities where “start ups” hangout, go to incubator sites and look for the process they are put through before funding offers are put on the table.

    Look for “why” some get funded and others do not, how many paying customers they have to have, what forecasts they have, how to pitch and present data etc.

    Good luck.

    #1221712
    BusinessTrade
    Member
    • Total posts: 210
    Calcul8or, post: 267807, member: 29970 wrote:
    So, any tips?

    Join some start up events where there are investors and apply to pitch your product. Contact some venture capital firms and pitch your idea.

    #1221713
    Calcul8or
    Participant
    • Total posts: 469

    [USER=113709]@BusinessTrade[/USER] that’s exactly the kind of thing I’d rather not do. But as I originally stated, what you’ve suggested seems to be the only way to go about it these days.

    How do bigger businesses do it? What avenues do they follow to find and start discussions with prospective investors?

    I can’t see them pitching ideas on websites in amongst 20-something’s looking to get their first break.

    #1221714
    JamesMillar
    Participant
    • Total posts: 1,675
    Calcul8or, post: 267807, member: 29970 wrote:
    Hi Everyone,

    I’d appreciate some advice from anyone who’s been down this path before. I know there are various websites out there that I can post pitches etc on, to try and attract the attention of angel investors, but I’m wondering if there are any “conventional” means out there that don’t require me to put on a clown suit and do a song and dance act. I’m not very hip, so I wouldn’t be doing anyone any favours by pretending I am. All I’d really like to do is explain the reason I need funding, let them do their due diligence and then get an answer.

    Also, back in the days of my corporate life, I worked for a company that got a couple of investors on board, and that was before investor websites or the term “startup” even existed. It was all a pretty black and white process as far as I could tell, and that’s what I’d like if at all possible.

    As this is the first time I’m doing anything like this, I seriously do not have any idea where to start or who to approach. I think I remember hearing somewhere once that speaking to my Accountant might be a good starting point, as they supposedly are linked to investor networks. I’ve never discussed it with mine, and I’d really like to avoid making a fool of myself with them if I’m wrong.

    So, any tips?

    Cheers,
    Shail

    Hi Shail

    My first comment is that I think that your business skill set is very well positioned to take advantage of the impending paradigm change in small to medium business in Australia. We are seeing many small businesses trading sideways / standing still and I think a large part of that is because they are persisting doing things the way they have always done them. “If it ain’t broke don’t fix it” mentality.

    I think the reality of the small business world that we now ALL operate has fundamentally changed. Markets are more competitive than they have ever been. Global competition for small business is a relatively new thing. The new generation of tech savvy operators disrupting industries left, right and centre. All of this has had a massive impact on typical small business and I don’t see it reverting back to the relative easy days that once existed. So for anyone in small business or entering small business – if you don’t have something special you are probably wasting your time. I really believe that.

    This is where skill sets and mind sets like your come into play. A conventional business can survive and possibly still thrive IF they improve their operations and analyse things in a better way (or at all). With labour costs as they are then things need to be done differently. I maintain that as soon as the Accountant robot /AI exists we will be investing in a big way.

    I don’t know your business model and I have no idea what your plan is for the money but I think you are in a good space. I would be very interested to find some time to chat about where it’s going – potentially for business opportunities first and foremost. As accountants we need “partners” that can deliver the tech and processes. We know they are very important but we are not experts in the detail – you seem to be.

    Anyway very interesting looking operation you have. Hopefully we can chat sometime.

    Best
    James

    #1221715
    BusinessTrade
    Member
    • Total posts: 210
    JamesMillar, post: 267823, member: 5318 wrote:
    I think the reality of the small business world that we now ALL operate has fundamentally changed. Markets are more competitive than they have ever been. Global competition for small business is a relatively new thing.

    I think that you are right in that regard. I think technology has changed the overall dynamic of business and the concept of competition.

    It will be interesting to see what happens over the next decade. Advances in automation technology, artificial intelligence and machine learning will only serve to create more disruption.

    #1221716
    JamesMillar
    Participant
    • Total posts: 1,675
    BusinessTrade, post: 267824, member: 113709 wrote:
    I think that you are right in that regard. I think technology has changed the overall dynamic of business and the concept of competition.

    It will be interesting to see what happens over the next decade. Advances in automation technology, artificial intelligence and machine learning will only serve to create more disruption.

    I recommend you watch this. Pretty impressive speech
    [MEDIA=youtube]9eENA_eb8oE[/MEDIA]

    #1221717
    Dave – FS Concierge
    Moderator
    • Total posts: 2,523
    JamesMillar, post: 267823, member: 5318 wrote:
    Hi Shail

    So for anyone in small business or entering small business – if you don’t have something special you are probably wasting your time. I really believe that.

    [USER=29970]@Calcul8or[/USER] just to add to what James said about having something special. That doesn’t mean some fancy new tech or invention or business model, it means a business proposition that stands out. A great deal (good investment).

    Dave

    #1221718
    MH08
    Member
    • Total posts: 284

    The surge of information has made it very quick for investors to weed out bad business owners, I’ve been approached many times and the most simple answer in my head is this, “I don’t care about how confident you are, I need to know your competent in what you do”. Now in saying that I was approached a while back for $100k investment, I would have done it no problem, the issue was that I felt he wasn’t being honest with himself and me. Why is that? Because deep down I know theirs a chance the business will fail, I need to know how it will fail before it reaches it, I need to know the hurdles (including how high) we are likely to face and how much time that will consume from myself.

    Running high with all enthusiasm and excitement is excellent, but that love for your business won’t pay the bills. Last time I checked saying you love your house to the bank when you need to pay won’t stop them from taking it.

    Look for investors that have made their money quickly, i.e. from investments, they tend to have a better understanding and better appetite for risk. Investors that have made their money over 30 years in one business and sold out to make bank and it’s the same in their head, they tend not to take risks unless it’s a sure thing. That’s a bad investor you don’t want because they’ll be controlling.

    #1221719
    Calcul8or
    Participant
    • Total posts: 469

    Hi [USER=5318]@JamesMillar[/USER],

    Firstly, apologies for the delay in responding.

    There are a number of very interesting points and observations you’ve made that I completely agree with, and would love to discuss further.

    Given this is probably not the best time of year to get in touch, I’ve made a note to do so in late January, if that’s ok.

    In the meantime, have a wonderful and safe Christmas and New Year!

    Regards,
    Shail

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