Q: How should capital raising strategies change in a tighter fiscal environment of COVID-19 pandemic?
A: Let me break it down into 3 points to keep in mind to ace your pitch, post CORONA VIRUS CRISES:
1: INVESTORS STILL EXIST AND THEY ARE LOOKING FOR A POSITIVE RETURN.
What you need to remember if you’re raising money is that whenever there is a crisis, there is MORE desire for a good business opportunity.
During an uncertain time, who wants to put their money in the stock market? Who wants to buy another house? Nobody.
When everyone thinks the market is going down or they aren’t sure then they start holding on to their cash until they know the stability of the future of traditional investments. In fact they don’t know where to safely put their cash to create a positive return.
Plus there are a lot of people who have money. This is a curious thing. Again, I studied economics at the University of Southern California (USC) and the rich historically stay fairly rich in a recession compared to the general populace. There is lots of cash still out there and people with it don't know where to put it.
2. TIME TO PIVOT YOUR SALES PITCH TO MATCH THE TIMES.
So the question really is, is how good are you at selling your business and pivoting your pitch to address the looming fears?
If before there were these fears your pitch worked, then you just need to pivot it to address the fact that you're the best investment on the market. When everything's going down the stock market, and it's burning down you need to show them you have a promising solution and you're the horse to bet on.
The first thing is to just remember is that it always boils down to sales. There's money out there.
3. YOUR BIGGEST ASSET RIGHT NOW IS YOUR POSITIVE MENTALITY.
The biggest issue is literally your mentality because when you feel depressed and weighted down with fear that the world is ending, that is what stops you from being creative.
Guest panelist Juan Macias, said that really articulately, if you don't know how to pivot, it's most likely your mindset needs to be refreshed and rejuvenated. Find someone to talk to who is encouraging and get your head back in the game because there's opportunity. You just have to pivot.
In summary, this is go time if you're in your raising money phase. Good ideas with a solid pitch and plan for ROI will get funded. Period. In economic upturns or downturns. Have courage. Be wise. Strategic actions will move you forward. I hope this Q&A encourages you with some fresh perspective of how to grow yourself and your business.
Expert taken from “USC’s Alumni Entrepreneurship Webinar Q&A: Building Resilience For You And Your Business During COVID-19” (5/12/20). To watch or join the USCAE VISIT: https://www.facebook.com/watch/?v=535...
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MORE ABOUT EMILY PAGE
Emily is CEO of Pearl Resourcing and has managed and launched multiple 7-figure brands in Costco, Williams-Sonoma, Kroger, and Amazon. She’s bringing you the expertise, resources, and mentors you need so that you can develop products and make them sell.
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