How to Get Funding: Traction and Trajectory
Today I decided that in order to be compelling, business plan presentations really need to have two things: traction and trajectory.It’s pretty hard to convince anyone, especially an investor who is naturally protective of his/her own money, that your idea will actually work.
Entrepreneurs often count their chickens before they hatch. In fact, we count our chickens before we have ever sourced the eggs. We just believe. We just have faith that somehow it will all work out. So we invest time and energy in our idea.
Investors aren’t “full of faith” like that. Investors have wealth and they want to protect it. They want to grow it too, but there are myriad ways to do that, some with very little risk. If they even consider investing in high risk/high reward startup companies, they know they will have to be careful because most businesses fail. Investors don’t want tothrow their hard-earned money away.
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