What Investors Look for in a Market Slide

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

Part of the startup's pitch deck should be a market slide.

Here's what investors need to know about your startup's target market.

Who is the target customer?

A good market slide segments the customers into categories and highlights the ideal segments for the startup's product.

Next, the market slide shows how many potential customers are in the target market.

Finally, the slide shows how the startup will compete in the market.

The market slide does not show the total size of the industry but rather the total amount of revenue the market can generate for your startup.

The market slide shows three views of the market.

Total Available Market shows the total amount of revenue from your product that could be generated annually.

Service Addressable Market shows the amount of revenue generated minus the applications the product cannot address.

Service Obtainable Market shows the Service Addressable Market minus the revenue that goes to competitors.

Consider these points in building the market slide for your startup.

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let's go startup something today.

_______________________________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org

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How To Pitch the Business Case for Your Startup

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

Most first-time founders talk about the product and how it works.

In pitching, it's important to make the business case for your startup.

Here are some key steps to use to make the business case:

Start with the problem and show how it costs the customers a substantial amount in time or dollars.

Show the number of potential customers who have this problem.

This is often shown in a Total Available Market slide.

Highlight the current competition and their effectiveness.

In most cases, the competition solves the problem but leaves plenty of room for improvement.

Show your solution and highlight the competitive advantage.

The competitive advantage should give your business a 30% increase in revenue over the competition or a 30% decrease in cost.

Next, show the monetization model.

This includes all sources of revenue.

Finally, include a financial forecast to show the growth over time.

It's important to validate the business case with happy customers who paid for the product.

Consider these steps in making the business case for your startup.

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let's go startup something today.

_______________________________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org

Check out our other podcasts here: https://investorconnect.org/
For Investors check out: https://tencapital.group/investor-landing/
For Startups check out: https://tencapital.group/company-landing/
For eGuides check out: https://tencapital.group/education/
For upcoming Events, check out https://tencapital.group/events/

For Feedback please contact info@tencapital.group

Please follow, share, and leave a review.

Music courtesy of Bensound.

Growth Startups Are Not Profitable in Year One

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

Startups require up-front costs to set up and build the company.

Any financial projection that shows profitability in the first year is suspect.

Upfront costs include building the website, filing the company legal entity documents, patent filings, and more.

Hiring the team takes time and takes time away from building the product or closing the sale.

Initial funding takes time as well.

Core business processes need to be put into place.

Initial leads need to be generated.

These costs always outweigh the revenue coming in.

Once the basic processes are in place, then the task of building products and selling to customers can increase.

After the sales process has started, there will be some time before revenue comes in.

It takes time to build sales momentum.

Once you have a growth curve going, the opportunity for break-even becomes a possibility.

Beware financial forecasts that leave no time for business or sales startup to take hold.

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let's go startup something today.

_______________________________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org

Check out our other podcasts here: https://investorconnect.org/
For Investors check out: https://tencapital.group/investor-landing/
For Startups check out: https://tencapital.group/company-landing/
For eGuides check out: https://tencapital.group/education/
For upcoming Events, check out https://tencapital.group/events/

For Feedback please contact info@tencapital.group

Please follow, share, and leave a review.

Music courtesy of Bensound.