How to use Marketing skills in Fundraising
One of your ultimate goals as an entrepreneur is to solve human problems. This is because you will become richer by solving human problems. But have you ever thought, there are different things that have similar objectives?
A certain boy asked his father an amazing question. He said “dad is there a difference between Mr. Peters who is a truck driver and you who is a fish farmer?” The dad smiled and responded with a gentle tune. “My son we are into the same business. What the driver is doing is not different from what the fish farmer is doing. The two are providing solution to human problems. The two has a goal to make money.”
That is exactly how raising money and marketing your product are two different things but has a singular purpose. The purpose is to generate money to solve other problems.
How is investment Pitching marketing?
Why is raising money or funds for your business is same with marketing your product?
Before I answer the question, let's look at two meanings of marketing.
What is Marketing?
According to the Amarican Marketing Association defined marketing as the performance of business activities that direct the flow of goods and services from producers to consumers. Your attention should be in the flow of goods and services from producers to consumers because that is the goal of marketing.
Progress Ibrahim defines marketing as the process taken to convince the target market that an innovation is a solution to their existing problems. That means the consumer has to accept that the solution is for them in order to have an exchange. The goal of marketing is to convert a product into money through sales. A marketing strategies become effective when it leads to sales.
Back to our question. The reasons why pitching to potential investors is like marketing to the market targets is because the two activities involve similar components, which are;
- The Entrepreneur and the Potential Investor:
Every marketing activities must have basically two parties. The demand side and the supply side. In pitching to raise funds, the two parties are; the entrepreneurs trying to convince the potential investors and potential investors who may invest.
- The company and the Market Target:
To a business, the two basic parties of marketing are; the company’s products and the target markets. While the company will employ all the strategies they could to market their products to the market target, the market target will ultimately make the buying decisions.
Image credit: Jack Ma Netpreneur prize
How to use marketing skills to raise funds
- The Product Similarity.
In marketing, a company or an entrepreneur offers a solution to the market called a product. This is the product that forms the bond of the relationship that exists between a company and the customers. What features does your product has that make it different from others.
In pitching for funding, the business of an entrepreneur is the product. Being that your product is the business, you should be able to know the in and out of your business. What is your business model, what is your competitive advantages and so on.
There is an interesting article here about how to answer investors questions. Click the link to study it.
- The market Similarity.
To marketing, the potential users is your market target. This means that your marketing focus should be targeted on the market target. Your market campaign, marketing strategies, promotion, ad words marketing etc should be focused on the market targets.
To investment pitching, the investor is your target market. This same is through, your pitch deck development should be prepared with your investors in mind. The only person you are going to see is your investor. He is the only one that matters as far as that is concerned.
- The Benefit Similarity .
What will your market target or potential consumers benefit when they buy your product? Just like 3S Rules, when you buy the book you will learn the skills used in building Amazon, Google, Microsoft, Apple etc. The problems of the users should be solved as promised in the marketing when they buy your product.
What will the investors benefit? The investor will only invest because your business will become profitable in the future and generate ROI for his investment. You need to also make him to see the potential of your business and give him a stake for investing.
- The communication Similarity.
Your must master the skill of persuasive communications. Copywriting , ad copy, digital contents, promotional ads are marketing strategies to communicate to the potential users of your product to convince them.
In the same vein, communicate to your potential investors in numbers and persuade them with in storytelling.
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