The importance of storytelling in fundraising, especially for early-stage. Watch the full video — free, no account needed.
The video emphasizes the importance of storytelling in fundraising, especially for early-stage companies. Founders should focus on their "Why," the market opportunity ("What"), and their execution roadmap ("How") to excite investors.
hello everyone this is alejandro cremares and today we're going to be talking about the signs that you've chosen the right business idea [Music] so there's billions of business ideas out there they're literally like buses they're they come and go all the time but you need to make sure that whenever the business id that bus that comes in and the door opens you're literally getting in the right bus at the right time in history so in today's video we're really going to be breaking it down for you and give you some insight so that you understand what are some of those signs to really get that type of validation and to know that you're in the right track so with that being said let's get into it people want to help that's one of the things that you're going to see when you have a great business idea it's like a magnet that business ideas people that want to really come in and participate with
you i remember interviewing a super successful entrepreneur that has built super big billion dollar companies on the deal makers podcast where i interviewed some of the most successful entrepreneurs that essentially told me that at the end of the day a very successful business starts with having an idea where there is different individuals that come together and where maybe one has or adds that splash of blue another one adds that splash of yellow then another one splash of green and then that's ultimately what it makes magical something really becoming successful so in the end great business ideas are some of those magnets that attracts people to come together to make something unique and meaningful also another good sign is that you get paying customers again you know it's not about having the perfect product it's about having something that is functional so that right away you can put
it in front of your customers and start getting that money in because the way that you make your first dollar that is what really counts so don't wait until you have the absolute most incredible shiny product or service just have something that works put it out there for your customers see if the people are willing to pay and then based on those data points then that's exactly what you use in order to continue building on top of it customers are willing to share with others that's another great sign that you've essentially found a great business idea that could really potentially develop into a successful business i mean this could be word of mouth customers that are super impressed customers that are very satisfied customers that haven't seen anything like this ever before and they share with their friends with their family with classmates colleagues whatever that is another thing is
basically they share on social media basically they like to they like your content they like your product they put it out there to their network and that actually helps to really grow very fast in many cases there's great products that especially during their launch they engineer a way so that people can perhaps join waiting lists or things like that so that it really kicks things in the high gear but again people willing to share with others is a great sign that you perhaps have nailed it on something that has legs another thing is lower customer acquisition cost because here's the thing it's going to cost you some money to acquire customers but what you want to make sure is that the money that is costing you to acquire the customer to come in and essentially make a payment is going to define or justify that money that you're spending so obviously the less the better and when those
margins are great is definitely a clear validation that you've found gold there is traction and you're growing ultimately growth is a great signal because if you're able to see that week over week or perhaps month over month or obviously if you're a later stage year over year that that growth continues to develop you are going to be experiencing perhaps that you've that you found something meaningful and this essentially needs to be not just like paid because paid you can just like get it like right away is perhaps a way in which it's organic maybe there's like a organic distribution channel that you found where it just grows on its own that would be a great validation that you found something that really sticks and that it really gets like a life of its own kind of thing you receive inbound investors ultimately sophisticated investors are the ones that know where those good ideas are
what potential good ideas could convert into really big massive businesses and they are great at pattern recognition and what pattern recognition means is that they've had in the past companies that they invested in that either failed or succeeded and your idea is perhaps going to remind them of something that either failed or succeeded so if you have an investor that is reaching out call to you and that they want to get educated or they want to meet you and they want to have like an introductory meeting that means that essentially you have something of interest in the market and that there is people that are really viewing studying with talking with your competitors and with other people in your segment and that they thought that what you're doing has a unique component so that's a good sign and a good validation people want to work for you this is obviously a great sign because the
thing is that especially if you're in the early days if you're a startup you're not going to be able to compensate that employee with the same salary that maybe they're going to get out of google or a facebook or at big corporations so really what you do here is you compensate by giving them some cash and then some stock in the business in the form of stock options basically that would convert into equity pending certain milestones i mean people typically call this as vesting as a vesting schedule and they put it over four years where every year that employee invests certain amount that they would be entitled to in terms of stock that would convert into equity and essentially by them accepting that stock and getting lower cash that means that they really believe in what you're doing and that they see a real future that is going to justify the sacrifice that they're taking on the pay and
that essentially is going to be coming later on to them in the form of of our reward if the company is acquired for a much bigger price in the in the form of maybe the company going public but really they're taking a bet they're taking a bit on you they're taking a bit on your idea and that's a great sign that people are willing to sacrifice in order to join you in this journey the competition is moving in this is another great validator and the fact that people are trying to copy what you're doing to replicate what you're doing that's really fantastic don't be concerned don't be alarmed because that's a great thing ultimately remember that they are always going to be six to 12 months behind you whether you are today or when you're gonna be in six months they're always going to be behind if your execution is right and don't worry about your competitors because at the end of the day you
make decisions you make choices every day and each one of those decisions or choices can impact your business much more than what your competitor is doing so only focus on what you're doing really like laser focus and just forget about everyone else and just always pat yourself on the back because you're doing well and people are trying to replicate what you're doing so i would love to hear on the comment section below what you're up to also don't forget to like the video and to subscribe to the channel so that you don't miss out on all the videos that we're rolling out every week and take a look as well at the fundraising training which is the program where we help from a to c with everything related to fundraising there you'll find live q and a's templates agreements a community of entrepreneurs helping each other and you'll find tremendous value in it so thank you so much for watching