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Experienced Corporate Finance and Private Equity Executive
September 19th, 2016
If your question is how to allocate an anticipated fund raise to marketing in order to justify the amount, i would suggest that you would be more successful in turning the questions around. That is:
1. what do we need to accomplish with marketing to move the business model to the next step. this is the next step in value creation (could be de-risking the proposition, building capabilities, or scaling)
2. what do we need to do (problem validation, customer segmentation, trial, or build sales) and how much does that cost?
3. Who is going to lead the work (internal or external)?
4. How much money will the organization burn while working through the next thing to do-Question #2
The answer to these questions should help create a focussed message that will help attract investors.
I'd suggest that you research your competition ... both the successful ones AND the failed ones. You'd be amazed how much your own marketing plan ... and your go-to-market strategy ... can change based on this.
Hi Ivan. Yes you need a Marketing Plan this is to show how you will do Your Sales for your product.
Once you have this plan then you will need a Spend Plan with a time line. This is to show investors how You are going to spend their money and in what time frame. I would do this on both an excel spreadsheet and a narrative. If you please keep it one page each. Also note go for the Whole pie as there is money out there if you can seek for 5 million an up. But here You will need a Team. To help You with this look up. MaverickEntrepreneurs.com Eric Drake is great at teach this as she helped me go after my $32 million capital raise. Also know YOUR Break Even Point AND YOUR Positive Cashflow point. This is very important to investors and should be in line with your Marketing Plan. If you have any questions please shool me an email. See me on LinkedIn. Hope this helps you as I myself am going thur it right now. Cheers Alan Petzold
Also I would suggest that You use an attoneys Escrow acount. This way you can provide some protection with the investors funds thur the Escrow Agreement and the Attoneys insurance liability. Pick an attorney that understand your line of business. Alan Petzold.