Although the recent Consumer Confidence Index remained relatively unchanged, one site announced that within 24 hours of Britain’s vote to leave the European Union, technology startup Netz saw five investors suspend hundreds of thousands of pounds in promised money.
But when everyone else has been caught on the back foot and is panicking about changes to the markets and business environment, for the intrepid CEO, now is the time to take advantage. Think calmly and creatively about the ways in which you and your company can benefit from this challenging time. Ensure that your investors maintain their confidence and positivity about your business venture.
Take stock of your business plan and consult the talent available to you. As a constantly evolving document it should be ready for any contingency. Should it become necessary at short notice, does it still stand up to financial scrutiny amidst this new world?
With cash flow being a young company’s primary concern, if currency fluctuations or the evaporation of promised funding have added to your liquidity worries, it is essential to stay on top investment opportunities.
As Forbes pointed out in the wake of Brexit, start-ups and young businesses have an opportunity to refocus; to refine their product, cement customer loyalty, and develop more profitable revenue streams. After all, it continues, many businesses thrive under harsh economic conditions.
In order to investigate and develop other streams of revenue, an injection of cash at this time could be potentially lifesaving. Tightening your product and service, focusing on your primary customers is crucial. However if you are already supplying foreign contracts, you are excellently placed to start investigating potential new markets which could become more viable. Be ahead of the crowd.
You don’t need telling about the pitfalls of finding the wrong financial partners to achieve your goals, you’re likely to have experienced them. Although you can demonstrate your business knowhow in your plan, it is your continued belief in and passion for what provide that will inspire the admiration and confidence of potential and current financial backers.
Your pitch starts long before that initial meeting with your would-be investors. Do your research on them, just as they will be researching you. Find out what interests them, where else they have invested their money, and how involved they like to be in day to day business. What is their reputation amongst the small business community? Once you are face to face, interview them just as you’re being interviewed. Your due diligence will be apparent and you will impress. Be brave enough to walk away if you have doubts.
In these exciting and challenging times, a youthful and agile company like yours has the edge on many large established corporations. By communicating your willingness to meet adversity with real honesty, passion and drive, initial meetings with potential investors should reap rewards for both parties, whatever the environment.