Mistakes That Startups Make in a Financial Model

Mistakes that Startups Make in a Financial Model

What are the common mistakes that startups make in a financial model, and why must you avoid them at all costs? As you might already know, financial modeling plays a major role in startups. It is considered an indispensable tool for startups and founders. An entrepreneur might create a financial model for garnering investor interest or strategic planning, like calculating runway and deciding budgets. Nevertheless, financial modeling usually involves a spreadsheet, where complexity and confusion can increase without the proper precautions. Now, you may want to dive into a spreadsheet right away. But it would be best if you went ahead with a concrete plan. That way, you could avoid a lot of mishaps. In this post, we present to you some of the most unfortunate mistakes that startups make in their financial models. Learning about these mistakes will help you to avoid them at all costs. 

Startup Financial Model Mistakes
Startup Finance Model Mistakes Can Waste Your Precious Time and Money

1. Hardcoding projections and assumptions

Hardcoding values in a financial model is one of the most common mistakes made by entrepreneurs. It definitely shows a lack of experience. Plus, it implies that you lack a fundamental understanding of the model’s purpose.

You have to keep this rule in mind: only revenue and costs should be inputted manually. The rest of the model should then be modified as per these inputs. Suppose that the additional values are hardcoded. If that’s the case, then you are essentially increasing the complexity of the model. Some changes might not even be reflected if these additional values are not changed manually again with respect to the new inputs. This makes it more challenging to go back and make adjustments to the inputs. Plus, you risk hiding certain assumptions. More than anything, hardcoding values showcases a lack of discipline. This could lead investors to doubt your potential and be skeptical of the reliability and transparency of your business.

So, how can you minimize such issues? What you can do is double-check to make sure that only two values are hardcoded: revenue and cost (also known as expenses). Keep in mind that the majority of your model should come from interlinked cells and formulas that update dynamically given different inputs.

2. Forgetting who your audience is

Most startup financial models used for fundraising are usually internal planning tools. However, there is no need to highlight that fact. When a third party goes through the model, they should be able to figure out how to extract the model’s gist. 

Make sure to showcase your assumptions clearly and logically. It is important to use formulas to “show your work.” Some entrepreneurs make the mistake of using hard-wired numbers. Remember to avoid this mistake so that the reader can understand the calculations.

Logical Assumptions vs. Reality in Startup Financial Models
Assumptions in Businesses Can Completely Differ from Reality; Pay Attention to Them!

What if headcount tables don’t specify the function or title of the resource? Trust us: this could be such a letdown to the reader as a very prominent typo.

Keep in mind that most investors and all VCs have usually had formal financial training. They can instantly spot a formula error. Certainly, you don’t want to make a presentation with typos for investors to see. That’s why you should ensure that you audit your financial model before you send it out. It would be best if you could get someone else to double-check it or work on it for you.

A good tip you can try out is sending your model to a colleague or fellow founder and getting their feedback to find the three deliberate errors. This can help you find any issues that you may have missed.

 3. Missing details that investors want to hear

Not considering what the investors want to hear is a huge mistake made by entrepreneurs. Surprisingly, a lot of entrepreneurs make this mistake. They present financial models to investors without demonstrating the growth potential an investor requires. Of course, investors know everything won’t turn out exactly as initially planned. However, they do expect to see statistics that generate potential target returns.

Likewise, investors are concerned about the money. So, your financial model should especially demonstrate how their funding will be deployed. They would want to know over what time period the funding will be deployed and what the startup business will have achieved due to that investment. You also have to show them how much additional money will be needed before your startup will reach break-even and the amount of money a mature business can generate.

4. Not having a plan for the future

You cannot deny that a solid plan is a key to the success of any business. Projections are based on actual assumptions, not a finger in the wind. These guide the business as it grows while also ensuring that smart practices are incorporated based on actual assumptions, not a finger in the wind. These guide the business as it grows while also ensuring that smart practices are incorporated. Note that smart moves should be present from day one. Forming good habits from the beginning helps you to be better right out of the gate. Making a mess in the early days will only make you mop it up for the years to come.

A Proper Business Plan for Startup
A Proper Business Plan Is Essential Not Only for Startup Financial Models But Also for Long-Term Success

Make sure to keep the books clean from the beginning, and trust us—you’ll see the benefits in the long run. Being GAAP-compliant as much as possible will help you over time. You also cannot undermine the compensation decisions you make today. Suppose you’re doling out stock or options. Then invest in a 409A valuation once a year and anytime a major event occurs (like a major financing deal). Doing so will keep you out of trouble with the IRS and ensure that you accurately account for stock compensation.

Focus on long-term efficiencies 

The takeaway here is that it is important to focus on long-term efficiencies rather than just focusing on the short term. Of course, an exit strategy might sound unrealistic. Still, it should always be present when you make decisions. When the time comes to go public or to make the company look attractive to an acquirer, the amount of work involved is huge—it can be even heavier and make any deal shaky if you make several mistakes along the way. So make sure to set your financial processes in place to scale. Remember that this is for long-term benefits.

5. Ignoring compliance

Ignorance is never an excuse that regulators let slide. Keep in mind that the risks are way too great to be in denial. Instead, you have to get it done. Auditor and government interference can make things downright unbearable if you don’t. And growth could stall as senior leaders get pulled away from their daily tasks to handle pressing inquiries. Apart from the high stress involved, audits are disruptive to the business. Troublesome findings can end up with interest charges and penalties. If that happens, there’s also a risk of losing the ability to continue the business.

Rules and Legal Compliance for Startups
Adhering to Legal Rules and Being in Compliance are the Most Important Aspects of Financial Models

Of course, private companies have a relatively lighter compliance load than public companies. Yet, the list is still long, between labor laws, tax returns, secretary of state filings, federal and state regulations, etc. Work with compliance experts who can help your company stay up-to-date. That way, you can fully focus on growing the business.

6. Formatting inconsistency

Suppose you absolutely need to include additional hardcoded values. If that’s the case, make sure to group the fields together in the same tab. Title those as “inputs” and apply different formatting to them.

Usually, the “inputs” and “assumptions” tabs need to be first in the spreadsheet. That’s because it determines the outcomes of all subsequent projections. If you incorporate good organization, you’ll be able to minimize the complexity of your model. That makes it more accessible to different viewers. The reason this is important is that the models can be shared, presented, and printed.

We assure you that organization and formatting are not technical issues that require a lot of skills or expertise. Essentially, they require a bit more time and discipline. Plus, make sure to think from the viewers’ point of view when you work on it. Make some efforts in your financial model if you would like to reduce any possible friction among parties involved.

7. Syntax Errors

Some mistakes may be the simplest things. It could be something as simple as confusing two formulas, which can produce unexpected errors. For example, you may confuse COUNT() with COUNTIF(). This would lead to counting all numeric values in a specific range instead of only the values that match particular criteria. However, this mistake would usually be rectified immediately while the model is being prepared, as the number of parameters required is different for the two functions. The spreadsheet software will complain right away, and the mistake will not be prolonged.

Here are some other common syntax errors made by entrepreneurs :

  • Mixing up positive and negative digits in a cash flow statement.
  • Misplacing or forgetting brackets. =A1+B1*360 does not equal =(A1+B1)*360.

A solution we can suggest is to use checks throughout the spreadsheet. That way, you can verify the calculations. Make sure to have all checks in a single tab to stay organized. Also, keep in mind that the balance sheet always needs to balance. That way, the sum of all assets should equal the total of all liabilities and equity.

8. Long formulas

Another mistake that startups make in their financial models is the use of long formulas. It would be best to avoid long formulas if you could. That way, you can minimize the complexity of your financial model and spend less time double-checking calculations. Make sure not to fall for another pretty common mistake by using nested if conditions. We know that it is necessary at times. Yet, remember that nested IFs tend to generate errors when used improperly, and also reduces the readability of your financial model.

Always keep your model simple. One thing you can try is to narrow the problem down as much as possible. You can do this by adding several columns to work on a formula that will either return multiple or a single value. It is better to do this only when the constituent collection of terms inside a certain formula have real meanings in the subject of interest.

9. Daisy Chains

A daisy chain is when data is taken from several sources even when they were available from a single input tab. Essentially, there are a series of links that are not directly connected to the original source. This is a mistake you should avoid. It certainly forces the reader to go through the spreadsheet multiple times just to figure out the logic. Plus, it also adds to the size of the file.

10. Naming Convention of Files

Like formatting, the naming convention you use to save files can be the difference between taking too much time in file explorer and showcasing the organization skills to the investors.

You must double-check to minimize the possibility of human error. Of course, this does require some discipline. You might name a model “Model 5” and eventually forget its purpose entirely. To avoid this mishap, make sure to be rather specific with naming your files. Although it may seem like additional work for a simple detail, it is totally worth it. All the extra time spent specifying your files reduces the chance of presenting an embarrassingly incorrect version in the future.

Mistakes that Startups Make in a Financial Model - Human Errors
Human Errors That Can Cause Long-Term Damage are Common When One or More Individuals Do Any Task 

11. Incorrect sums

Another mistake that startups make in their financial model is also related to calculations. People tend to come up with incorrect sums by “double counting” values. Let us explain this with an example. A column might include the values of various assets with subtotals in the same column. So if you were to calculate the sum of the values, =SUM(C1:C7), the subtotals would be involved and double the sum.

So how can you prevent this mishap from happening? Well, you can use the SUBTOTAL function to add together each value that is not already subtotaled. =SUBTOTAL(C1:C7) would give you the correct sum.

Wrapping up

There you have it! You had the chance to learn about the mistakes that startups make in their financial models. Of course, creating a financial model is essential. It’s pretty easy to make mistakes. Even the simplest mistakes can break your business. Accuracy, transparency, and reliability are necessary for a financial model. Make sure not to make the mistakes we spoke about, including calculation errors. ‍ 

Financial Modeling for Startups

The Complete Guide to Financial Modeling for Startups 

What exactly is financial modeling for startups? Well, it is the process of projecting and forecasting revenue, employees, customers, expenses, etc., for the future to understand and assess the viability and profitability of the business. As the startup is still in its infancy, this modeling will help them create their budget and business plan. It will help present the business plan to potential investors.

Through this post, we wish to explain: What is Financial Modeling for Startups? It’s important, and you can start implementing it in your own business.

Business decisions based on data 

You know that business decisions need to be driven by data. Usually, the best financial leaders analyze where their business needs to go and what is needed to be done to get there. We know that it is easier said than done, of course.

Data-Driven Decision-Making
Data-Driven Decision-Making in Businesses 

Startup businesses can have jagged growth patterns initially. That is not unusual. It happens due to their large influxes of external funding and development of unique products. It’s not always a simple thing to handle their cash flows and revenue growth over time.

Luckily, there are several powerful strategies you can use to help leverage your financial data. They are financial modeling, forecasting, and budgeting.

Financial Modeling

A financial model is a tool that entrepreneurs utilize to represent the entirety of a startup’s historical and future performance. Here, future performance is analyzed based on a set of assumptions. Transactional impacts are represented in numerous accounts. Therefore, it is possible to alter one and then see how that change impacts the other.  

Financial Modeling for Startups - Definition
Definition of Financial Modeling for Startups 

Once you build the model, you can manipulate it using forecasting techniques. These techniques include forecasting and budgeting to provide insight into the growth of the business. Often, entrepreneurs use different office packages (Google Sheets, Microsoft Excel, LibreOffice, etc.) to construct financial models. Keep in mind that the most fundamental form of a financial model is the three-statement statement model. This includes an interconnected balance sheet, cash flow statement, and income statement.

Why is financial modeling for a startup important?

A Financial model can be a powerful tool for several reasons. There is one very important thing that stands out. That is, they enable your business to make effective financial decisions.

So, what if you go ahead without an in-depth financial model? If you do so, your startup’s ability to plan for the future could be incredibly limited. Businesses that make decisions without properly considering the impact they’ll have on their finances are at a huge risk. It is more likely that they run into cash flow issues. They would often spend too much money or in the wrong places.

Benefits of financial models

A financial model allows you to test several scenarios for the future, focus on the potential results, and come up with strategic decisions based on that information.

  • It helps in understanding the revenue and cash flow forecast for the business.
  • It helps in figuring out the business’s assumptions while creating the startup.
  • Usually, investors carefully look through the financial model before deciding to invest in a business.
  • It helps in understanding the profitability and viability of the startup.
  • It helps in showcasing the real picture of your business to the external investor and debating the investment terms.
  • It helps in quantifying the assumptions for the startup business.

Now that we know the importance of a financial model, we can move on to look at how you would build one for your startup.

Top – Down Approach

First up, we have the top-down approach. In the top-down approach, you start with macro factors and gradually work through the micro factors. Starting points are the industry standards, which essentially narrow down the goals the business can fit into. This particular approach assists with defining the forecast based on the market share you wish to acquire.

Financial Modeling for Startups - Top-Down Approach
Financial Modeling for Startups – The Top-Down Approach

The TAM (total available market), SAM (serviceable available market), and SOM (serviceable obtainable market) models help in this type of approach. The TAM for the product is estimated as the first step in this model. After that, you have to figure out which part of the market you want to acquire, which is called the SAM. From that SAM, the current service base of the company is known as SOM based on the existing competition. So, in this model, you start out with the size of the industry and the market share you can capture.

Bottom – Up Approach 

The method that is used in the bottom-up analysis is fundamentally different. An individual stock’s characteristics and micro-attributes are the prime targets of the bottom-up method. Bottom-up investment focuses on the underlying strengths of individual companies or industries. This study looks to find lucrative openings by comparing the unique qualities of a firm with its market value.

Financial Modeling for Startups - Bottom-Up Approach
Financial Modeling for Startups – Bottom-Up Approach

Research for bottom-up investment starts at the company level but continues upstream. The fundamentals of the company are taken into consideration, and the industry and local economy are also taken into account. Therefore, the bottom-up investment might be quite broad throughout an entire sector or extremely narrow in finding crucial characteristics. 

How to Build a Financial Model

Here’s what you have to do to build a financial model:

  • Compile your business’s previous financial statements.
  • Calculate the annual trends and make your assumptions for future changes in revenue growth rate, gross profit margins, fixed costs, and variable costs.
  • Use them to come up with future income statements from revenue down to earnings before interest, taxes, depreciation, and amortization (EBITDA).
  • Start by building the balance sheet first with your prior balance sheet and adjusting it using your income statement activity.
  • Prepare a supporting schedule for your capital assets, interest, and debt.
  • Utilize that schedule to fill in interest on the income statement. Once that’s done, calculate your net income and taxes.
  • Estimate your closing capital assets, debt, and equity balances using the schedules and net income for the year.
  • Create a cash flow statement, working backward from your net income (adjusting for non-cash expenses).


Financial modeling and forecasting are essentially linked. That is why they tend to get confused with one another. However, the distinction is that the model is the tool. On the other hand, forecasting is its primary purpose.

Forecasting refers to the use of pivotal assumptions about the future and historical data to predict your startup’s future performance.

This may surprise you, but the key to creating the most effective forecast often lies more in assumptions of the model than anything else. That’s right. Remember that these assumptions can swing the projected results wildly. They have the potential to make or break the forecast. That is why you have to take forecasting seriously. As an entrepreneur, you need to be able to effectively forecast your business’s future. For that, you should have a deep understanding of your startup’s business model, your market, your competition, and all the other external factors that might affect your growth.

Financial Modeling for Startups - Forecasting
Forecasting to Predict Startup’s Future Performance

The Importance of Forecasting

Forecasting is the biggest reason that financial models are built. As you know, a financial model can provide a framework for understanding your business. However, they would not mean anything unless you used them to plan for the future. Forecasting effectively allows a startup to:

Time your decisions properly

As you know, startups need to hire employees, buy equipment, and pursue rounds of funding to grow their business effectively, but they have to time each of these very carefully. Going ahead without funding for too long, hiring employees too early, or purchasing expensive equipment at the wrong time might carry your company to bankruptcy. Forecasting allows you to predict when your startup will be ready for big investments and when it will need new funding, so you can prepare well.

Pivot quickly in bad scenarios

All startup businesses should be able to forecast good, average, and poor scenarios for the future. This helps them come up with plans for each of those. You can stop being blindsided by outcomes that are less than you hoped for and respond to them instantly by using forecasting to create a contingency plan ahead of time.

Optimize its resource allocation

Startups have limited labor hours and funds. That is why they have to utilize them both cautiously. This is where forecasting comes in handy. Forecasting allows you to figure out the most essential levers driving your company’s growth, so you get the chance to invest your resources where they matter most.


Budgeting is essentially a subset of forecasting that is very much focused on costs and other cash outflows. This is a common way of utilizing the three-statement model, although it depends more on the income statement than anything else.

You’ll need to create different budgets for your business at each stage of its growth. For instance, you will need to create a budget for the costs of getting your product or service ready for sale before you start bringing in any revenue. But when you bring in revenue, your operations will, of course, expand. Then you’ll have to refine your budget by considering these new expenses.

Why Budget?

So why should you budget? Well, budgeting is such an important element for a startup business at any stage. We cannot stress that enough. But it’s especially needed for businesses that are concerned with their cash flow. This can be during times of low revenues or thin margins.

Once your startup business evolves past such challenges, your budget becomes a more analytical tool. Monthly or quarterly meetings are common for effective finance teams to review actual expenditures vs. planned expenditures. Thus, they are able to identify problems within different areas and make necessary adjustments.

Budgeting for Startups
Budgeting for Startups: Examples of Resource Allocation 

How to build a startup budget

Here’s what you have to do when building a startup budget:

1. Figure out your fixed costs

These will be hard to cut back on and include expenses such as payroll, rent, and insurance.

2. Estimate your variable costs

These will scale up with your sales and include expenses such as raw materials, shipping costs, and utilities.

3. Estimate your monthly revenue

Before anything, here is a heads-up: this step can be difficult. However, your revenues will be the benchmark against which to gauge your expenses.

4. Add in a healthy margin

Every business needs to have a buffer, just to be cautious.

  • Figure out your expenses by dividing them into necessary and discretionary categories.
  • Determine where you can make reductions in spending.
  • Adjusting, however, is needed.
  • Make sure to minimize discretionary costs to get your expenses under revenues with a healthy margin included.
  • Compare your budgeted outcomes to your actual results as frequently as possible. It would be best if you did so every month.

Wrapping up

You had the opportunity to get knowledge about “What Is Financial Modeling for Startups?” You learned about types of financial modeling, forecasting, and budgeting as well. The information we presented will surely help you build your startup business. You will also benefit from reading our post: How to Boost Productivity of Your Startup.

PR and Content Marketing: Which Is Right for Your Business

PR and Content Marketing: Which Is Right for Your Business

As you know, public relations (PR) is such a popular concept. Who has not heard of it? It has been around for decades. On the other hand, content marketing is a relatively new term. PR and content marketing are two disciplines that may seem similar at first glance. In fact, they do have a lot of similarities. However, there are significant differences as well. So what are these differences? And most importantly, does your business need PR or content marketing, or both?

Through this article, let’s identify similarities and differences between the two concepts. By the end of this post, you will distinguish between PR and content marketing and what is suitable for your business. First, let’s figure out the definitions of two concepts.

Definitions: What is PR? 

So what exactly is PR? Well, according to the Public Relations Society of America, “PR is a strategic communication process that builds mutually beneficial relationships between organizations and the public.”

Definitions: What is content marketing? 

The Content Marketing Institute defines content marketing as “the marketing and business process for creating and distributing relevant and valuable content to attract, acquire, and engage a clearly defined and understood target audience with the objective of driving profitable customer action.”

Types of Content Marketing
Different Varieties of Content Marketing Strategies 

Now, what can we understand from the two definitions of these concepts? The main point you can identify is the connection between PR and content marketing. You could say that content marketing is a subset of PR. Basically, PR is all about the overarching practice of conveying the right message to the target audience as effectively as possible. Likewise, content marketing is mainly a digital tactic that is mostly used by PR practitioners that focuses on creating and distributing content apart from traditional media channels. Simply put, content marketing mostly focuses on establishing and then using your own publishing channels. However, it can also utilize channels like social media platforms.

Differences and similarities in methods 

One of the main similarities between the methods used by content marketing and PR is that they both use writing, design, and communication media to convey a message. Each aims to cause the public to take the desired action, like purchasing a product or visiting a website. 

Let’s now look at some key PR tactics: 

1. Publicity

Maintaining coverage in the news (It could be in print, broadcast, online, or all of the above media). 

2. Damage control

Preparing for and responding to negative press coverage to effectively reduce or dismiss its negative consequences. 

3. Speaking opportunities

Checking for opportunities to speak, pitching a speaker, crafting the speech, and coordinating the engagement. This includes pitching news coverage of the speech and leveraging it through different media, such as social media platforms. 

4. Awards

Going after opportunities to win appropriate, reputation-enhancing awards and recognition. 

Public Relations Elements
PR: Internal Publics and External Publics

On the flip side, here are some tactics used in content marketing: 

1. Blogging

Writing blog posts that are keyword-focused to create an audience, convert prospects into clients, or to increase the loyalty of customers. 

2. Case studies

Showcasing real-world scenarios of a product or service in a specific, measurable, and engaging manner. 

3. Infographics

Coming up with visual-driven content to present concepts more interestingly and smoothly than is possible with just words. 

4. Podcasts

Making serialized audio content that showcases a compelling story surrounding a product or organization. 

Benefits of Podcasting
The Most Important Advantages That Podcasting Offers to Businesses

The connection between PR and content marketing 

Going through all the explained points, you get to see the connection between PR and content marketing. Did you notice that most tactics classified under content marketing have been used by PR practitioners? But they are certainly content marketing in the fact that they involve making and distributing content apart from traditional media. 

Plus, you may have noticed that content marketing tends to be less concerned with relationships. However, it is quite the opposite. This discipline just has a slightly different approach to establishing relationships. In content marketing, meaningful relationships are created by offering quality content that answers important questions. It helps when it comes to creating a trusting relationship between the person asking questions and the one (or organization) answering them. 

The primary difference between content marketing and PR 

The main difference between PR and content marketing is that PR communicates messages to audiences that already exist. For example, readers of a magazine or members of an organization may hear a speech. On the other hand, content marketing builds its own target audience. Certainly, there are advantages to having an existing audience. One of the major benefits is that the message being conveyed is benefited from the authority and trustworthiness of an already established channel. Likewise, there is an advantage to creating an audience from scratch. The benefit of building an audience is that you “own” it. You can tap into it whenever you want, versus being obligated to gain the permission of someone, such as an editor, to do so.

PR and Content Marketing: Measuring Success 

We have now established that PR and content marketing use tactics that are different from each other. So because of that, we can assume the way they measure success also differs. And yes, the two realms view success differently. 

When it comes to PR, success is measured by factors, such as viewer impressions, the number of media placements, and the authority of the media outlet in which the stories are placed. Apart from that, actionable metrics are also taken into account. This includes the number of website visits or leads generated from digital news media, which, unlike print or broadcast media, allows you to track readers’ actions prompted by consuming the media. Usually, content marketers focus on the latter, measuring their success rate according to referral traffic, engagement metrics, and conversion rates, etc. 

Vanity Metrics vs. Actionable Metrics
Vanity Metrics vs. Actionable Metrics

PR and content marketing: what is suitable? 

Now here is the big question. Which is the right call for you? PR or content marketing? Well, the answer is a bit more complex than the question. It’s not one over the other. Usually, content marketing and PR work best when combined together. You can use traditional media to direct traffic to digital channels and vice versa. Combining PR and content marketing can incorporate the real world and the virtual world for higher effectiveness in both. 

So, how can you implement the two disciplines? Don’t worry. We will give you some tips on how you can combine PR and content marketing correctly to get the best outcomes. 

  • Pitch your infographics to the news media. Since they are constantly seeking great art, you’d have a chance. 
  • Repurpose bylined columns published in the news by turning them into blog posts, keeping in mind where each column was originally published. 
  • Showcase award icons on your official website’s homepage. Write about your awards on your blog and put out press releases about your wins. 
  • Use the topics of white papers and case studies as the topics of your speaking engagements, and provide printed copies of the content at the engagements. 
  • Take news reports about your business and turn them into printed inserts in sales proposals.

Wrapping up 

There you have it! You’ve got to learn about PR and content marketing. Now you know the definitions, the similarities, and the differences between the two disciplines. You’ve also got to learn which of these is best for your business. The answer is not one over the other. Instead, combining the two can generate the best results. A solid marketing strategy is critical for the success of your business.

Advanced Guide to Startup PR

The Advanced Guide to Startup PR

We know that you have big dreams for your startup. You want to see your business grow and achieve success. And for that to happen, your startup needs effective upliftment. There are several actions you can take to give your startup a boost. One of the most essential steps is press coverage. We prepared an advanced guide to PR that will help you understand how to get the right press coverage. With the help of this PR guide, you will be able to stand out and get more customers in your business’s development. 

You have to understand how the hottest startups right now are all over the media. How did it happen? Well, it is all thanks to the magic of PR. Of course, these brands offer great services—but that’s not the only thing that gets them the coverage. There can be startups with great services and potential that remain more or less unnoticed due to poor PR. So, with the right PR strategy, you can turn your startup into press-worthy news. That is going to be a huge step towards the success of your business. 

Public Relations Strategy
A Sample Strategy for Startup PR 

An Advanced Guide To PR 

You know that a good story has the power to move people and influence action. Yours needs to be compelling enough to create such a response. 

Now, how do you create your story? Well, there are some key components that you need to keep in mind when making your startup story worthy of media attention

1. Master the Art of PR Storytelling 

Your story for the media needs to be created around three basic elements. They are:

  • Your products and services
  • The purpose of your startup
  • Your vision

If you use this framework, you can go through an exercise of company and customer discovery. This could assist you to illuminate the high-level, “big picture” points regarding your startup business: 

Your products and services 

Describe well what your service or product is and/or its purpose is and where its niche offering currently fits into the existing industry landscape. Remember that to truly define your product, you have to know how it’s different. That is why you should work on your competitive analysis at an early stage. 

The purpose of your startup

Figure out your business’s “reason for existing.” It basically means identifying the problem your product or service plans to solve. Plus, pinpoint who you are solving this problem for. You cannot forget about your target customer. So, make sure to have a clear understanding of who they are and what they care about. 

Your vision

Make sure to go with an exciting but authentic tone that encapsulates the overall vision of your startup. It’s also critical to remember that the vision should portray realistic goals as well. You can present your story and company as relatable to the customers. For that, try using real characters and events when crafting your story. Remember that honesty can never go wrong and it will establish trust. 

Advanced Guide to PR - Business Vision
Make Sure Your Vision Is Realistic and Convincing 

Once you figure out these factors, then you have passed a critical phase in your startup’s development by establishing how your product or service aligns with the actual needs of your audience. 

2. Get Journalists’ Attention 

Creating your story can help you clearly position your startup business. And you may see it as super exciting. Despite that, journalists might not find it interesting unless you offer them a reason to. So, how can you do that? Well, for that, you are going to have to think like a journalist. From their point of view, the story should be newsworthy. 

Let’s go through a few key elements of newsworthiness to keep in mind here: 


As you can guess, the news is “all about new” information. You can think about how your business can contribute to cutting-edge discussions in your field. 


Be up-to-date with the most recent articles by journalists in your field. You can do an in-depth analysis of the most trending posts. See how you can tie them to your story as well. 


Think about how your angle or approach is unique. What is your x-factor? What are you bringing to the entirely new table? If you’re saying the same thing as everyone else, you’re not making a very strong case for why you should be heard in the crowd. 

Of course, it can be hard to acknowledge that your product might not be inherently interesting to everyone. However, it’s absolutely essential to develop a strong filter for what’s newsworthy to get coverage. 

3. Figure Out the Correct Angle: Tailor Your Story to Each Journalist 

Suppose you have created a genuine story that is newsworthy. If so, that’s awesome. It is already a huge step forward. The next task is to personalize that crafted story according to each journalist you want to reach out to. 

Remember that it is going to be highly subjective. So, it’s so important to establish your target journalists well beforehand. Be sure to do enough research to understand how to find the correct angle. So, how to nail down your targets and tailor your story? 

Choose the Right Journalists

Shortlist 3-5 journalists you want to reach out to. Narrowing them down according to relevant industry, topic, and publication. At first glance, you may feel like shortlisting can reduce many options. But that’s a good thing. With this method, you know exactly who you should reach out to. 

Try out smaller publications that cover the relevant niche. It may not be deemed ideal. However, you’ll have a better chance to get traction if you concentrate on similar interests rather than trying to get the biggest media outlet. Your focus should be on where your main audience is—that’s how you get the best engagement. 

Research your targets

By subscribing to your target journalists’ social feeds, you will begin to get a sense of their vision, sense of humor, and what they’re passionate about. That way, you get the chance to tailor your story according to their interests and present it to them in a way that feels more relatable. 

Establish Your Newsworthy Hook

For your story to earn the attention of a journalist, you need to ensure that you can build a reason for them to care. Use as much research as you have at your disposal to come up with your hook. 

You can come up with a way to relate your story to topics that the journalists of your choice are interested in. Do your homework on the topics they cover the most and their most popular posts. 

It would be best to avoid cold calls. They can annoy journalists and hurt your chances. Instead, you will most likely go on their blacklist. Suppose you put in the work upfront to personalize your outreach. That’s a better move because then you’re more likely to get a positive response in return. 

Avoid Cold Calls
You Should Do Everything in Your Power to Avoid Making Cold Calls

Focus on ‘Human Relations’ for Long-Term Success 

Remember that journalists play a key role here. So, make sure you target the right journalists. However, what if you’re not developing any kind of bond with these journalists? In that case, you’re reaching out to them as a stranger. Then you become just one of many in the crowd who reach out to them. But let’s say you’ve built a good rapport with these journalists. Then it would be so much easier to send your story to them. 

A good bond can make a huge difference to your PR efforts. But don’t misread the advice. We are not suggesting that you just go out and start pestering journalists with the hope that they’ll turn into “useful contacts.” What you can do is take a proactive approach to building connections.

It is important to make friends before you need them

Maybe you’re wondering how to reach out to journalists and industry experts. How do you do so politely without sounding forced or self-serving? You can look for natural opportunities to talk about topics that you are interested in, where you can add value. You can do so by: 

  • Joining relevant groups 
  • Participating in social media discussions 
  • Replying to publications and group forums 
  • Asking a mutual friend to introduce you 
  • Sharing interesting work on your networks 
  • Attending industry events 

Make sure not to post anything related to promotional content at this stage when you’re engaged in such discussions. It is better to focus entirely on offering industry expertise and knowledge. 

Connecting with a Journalist: Key Tactics to Follow 

Suppose you’ve now started building connections and providing contributions to your field. Now is a good time to start reaching out to your target journalists. Some key tactics will significantly increase your chances of getting traction: 

Get their permission

Make sure you seek permission before pitching. It’s better not to assume that a journalist will automatically want to listen to the story. Besides, you’re more likely to get a “yes” if you ask. Keep it short but personal. It would be best to use a customized and personalized approach. That way, you get to speak to their professional interests. It is more valuable. 

Come up with a good headline

Suppose you can get the journalists to click on the headline. That in itself is a huge step. That means you have a better chance of getting a read on your first line of copy. 

It is important to let the facts do the talking. You can use stats and case studies to show the impact of your business. 

Headline Writing for PR
The Ultimate Guide to Headline Writing

Be prepared

You don’t have to wait until you get a “yes” to compile the supporting factors that backup your story. Don’t wait until the last minute to gather all the pieces and end up wasting the journalist’s time. Prepare your media kit before sending your pitch. 

So, what if you get a “no” as an answer? Well, it is important that you do not get discouraged. Instead, treat a ‘no’ like a future “yes.” When you get a no, take this chance to learn why. Ask for their feedback and any suggestions. It isn’t over for you yet. So for now, thank journalists for their time until next time.

Beyond the Scope of Media Relations: Ways to Advance Your Public Relations Strategy

Creating media relations and getting the right press coverage is very important for getting brand exposure since earned media from trusted journalists carries a lot of weight in the eyes of your potential buyers. 

As you know, it’s not easy to not take an all-inclusive approach on PR to evolve your strategy. Consider the following facts for starting up:: 

Create Valuable and Consistent Content

Note that your brand story can be enhanced through each piece of content you create. A consistent story across many digital platforms improves your credibility. Many influential brands have become pros at publishing this way. You could create everything from social content to e-books, blogs, infographics, videos, and events. This way, you can bring the news to your target audience.

Share Your Expertise on Non-Branded Outlets

A great way of building credibility is to contribute content on industry topics to media outlets. You can do so with a guest post, an opinion piece on some other company’s blog, or a podcast. By sharing your expertise on non-branded outlets, you get the chance to get third-party endorsements, build connections within your industry, and connect with your audience in new ways.

Leverage Your Social Outlets 

Social media can provide you with a huge chance to connect with niche communities in different ways. You can use these social outlets as a mutually reinforcing tool for your public relations efforts. 

Reaching Niche Communities
There are so Many Opportunities in Niche Communities

You can, of course, create discussions on mainstream social media outlets such as Facebook, Twitter, LinkedIn, etc. Other than that, consider capitalizing on social bookmarking sites like Inbound.org, StumbleUpon, Reddit, and Quibb. They provide a perfect way for startup businesses to stay plugged in, participate in discussions, and amplify the reach of PR placements. Keep in mind, it’s essential to engage daily as the majority of the content from major publications gets chosen organically. Keep your focus only on the most relevant outlets and dive into those communities. 

Consistent Presence: How to Map Out Your PR Calendar 

Your presence must be consistent. In other words, you have to be online as much as possible. So, how can you maintain a constant presence and remain top-of-mind for your customers? Well, it is not that much of a challenge with proper planning. That way, you can make sure that there’s a piece of news about your startup business at all times. Here are the steps to follow:

Step 1

Brainstorm ideas List down ideas for the most newsworthy elements of your startup’s product or service. Remember that your team’s input is important here. Each department will have important insight into how to solve the needs of customers. So, get feedback from every single member of your team. 

Step 2

Focus on emerging themes. Narrow down the emerging themes from your brainstorming session and figure out how they will connect with your clientele. 

Step 3

Map the themes onto the calendar: Map out your themes on a calendar with one campaign every 4-6 weeks. 

Step 4

Come up with relevant campaigns: Think about how content and social outreach can aid your PR outreach effort during each campaign cycle. Figure out the kind of content that would be the best fit for each campaign. Then create the content according to that. 

Step 5

Invest in relationships: Start by understanding your target journalists well before your pitch. With advanced planning, you will be able to constantly be one step ahead of your outreach. 

Step 6

Your team must be fully aware of what’s going on. Your team members should know the campaign cycles and be ready to participate, share, and interact with customers during these fast-paced periods. 

Step 7

Plan for downtime: Don’t neglect the in-between times to create and publish good content. You should aim for content that will have a big impact, keeping in mind that less is more. Try out collaborating with brands boasting bigger networks to make joint content. Also, remember to keep the content consistent with the overarching PR themes. 

Step 8

Test and evaluate again. Analyze the value of every media placement. Check again if any issues should be fixed. Hold meetings from time to time to track your progress. You must learn from any mistakes and refocus on maximizing your PR efforts. 

Wrapping up

There you have it! We have prepared for you a user-friendly, advanced guide to startup PR. As you know, your startup needs PR to reach the success level you want. It can boost your business and help establish your business in the market. 

It’s really useful if you take a proactive approach. By following strategic planning and execution, you will be able to take your startup down a more successful and productive path. You will also benefit from reading our post on the difference between PR and marketing

PR and Content Marketing Difference

PR and Content Marketing Difference Explained

Sometimes, certain terms can confuse you. Many people get confused by PR and marketing. You might think they mean the same, but it turns out, they refer to different things. Confusing public relations and marketing is quite a common mistake made by many. After all, they have a lot in common. So it’s no surprise that the two disciplines cause confusion. But they do have their differences. Learning the difference between PR and content marketing is essential. This knowledge comes in handy when communicating effectively within the organization. Plus, it is also necessary when it comes to customer engagement strategies. 

Through this article, we plan on letting you know about PR and content marketing. You will get to know the meanings of each term and the differences and similarities between them. So, to learn it all, just keep scrolling. 

What Is Public Relations? 

First of all, let’s figure out what PR means. PR, a.k.a “Public relations” refers to a strategic communication process that builds mutually beneficial relationships between organizations and their public. 

In public relations, public image is the main idea, and positivity is at the core of the notion. There are professional public relations officers, employed in-house or under the direction of a client. Their job is to portray an organization, brand, individual, campaign, or product in a positive light to the public. 

What Is Public Relations
Public Relations Revolves Around a Positive Public Image

Let’s take an example here. Suppose a company decides to improve the publicity. They would have a public relations team to come up with a messaging campaign to communicate their intentions to the public. In this case, the PR team would start out by drafting a “story” surrounding the entire business idea.. This involves elevating the profile of the organization’s founder or executive team, while drafting press materials and fielding media inquiries regarding the transition from private to public. The message will be shared in press releases, on social media, or face-to-face with journalists. The message would highlight the successes of the company and why it’s a good move for everyone involved. 

Let’s look at some of the most common functions of public relations:

  • Corporate Communications 
  • Crisis Communications 
  • Executive Communications 
  • Internal Communications 
  • Investor Relations Communications: 
  • Marketing Communications 
  • Integrated Marketing/Integrated Marketing Communications 
  • Media Relations 
  • Content Creation 
  • Events 
  • Social Media 
  • Multimedia 
  • Reputation Management 
  • Speechwriting
  • Brand Journalism
  • Handling Negative Press 

We discussed that the main idea of PR is to showcase a brand in a positive light to the public. This also involves handling the negative press. They have to deal with any negative news stories by coming up with plans to control the damage. Damage control is a huge part of PR and one of the toughest as well. Suppose a negative story comes up that impacts a client. Then, a public relations professional or agency must take a very delicate and cautious approach to dissolve the situation and reduce or reverse the damage. They would attempt to put a “positive spin” on things or communicate an apology on behalf of the brand. 

What Is Marketing?

Now, let’s see what exactly is referred to as “marketing. Marketing can be identified as a set of activities, set of institutions, and processes for exploring, creating, communicating, delivering, and exchanging offerings that include value for consumers, partners, clients, and the overall society. Of course, marketing is essential to brand-building, just like public relations. It is crucial to the survival and growth of any business. 

What Is Marketing
The Constituents of a Successful Marketing Strategy

There are different types of marketing and marketing strategies. We have mentioned some of the most well-known marketing strategies below:

  • Content marketing 
  • Inbound marketing 
  • Search engine marketing 
  • Email marketing 
  • Social media marketing 
  • Relationship marketing 
  • Viral marketing 
  • Influencer marketing 
  • Guerilla marketing 

So, what is the purpose of marketing? Why is it an important element? Well, that is because marketing serves so much. It is crucial to form a connection between a brand and its audience of clients. Customers are introduced to the value of the brand (it could be a product, company, etc.). Then, a bond is created with the intent of influencing the customer’s behavior. You might think of that as converting the client into a loyal consumer and brand advocate. However, it’s not just that. It doesn’t necessarily have to be about the sale of a physical product. Attitudes towards a brand can also be transformed through marketing. In turn, someone can become an advocate of the brand without ever actually buying products. 

Similarities Between Public Relations and Marketing 

We have established that PR and marketing are two different entities. Still, there are a bunch of similarities between the two. 

1. Storytellers 

One of the biggest similarities between the tasks of public relations and marketing professionals is that most of the time, marketing and PR officers describe themselves as storytellers. That is because both of these jobs require them to tell the story of an individual, brand, product, or idea. So, the approach taken by PR professionals and marketing professionals is pretty similar. Other than that, there are more similarities.

2. The nature of work  

Another similarity is regarding the actual nature of the work of marketing and PR officials. Both PR and marketing are focused on spreading the word and creating awareness. Although the two entities have different target audiences, spreading awareness is a common task for both. 

3. Tools of the Trade 

This point is pretty obvious. The medium and tools of distribution used by PR and marketing officials are similar. For example, both utilize distribution channels like social media to achieve their specific end goals. 

4. Content Creation 

Now you know that both PR and marketing professionals are storytellers in their own way. As storytellers, both jobs require them to have incredible content creation skills. This is a crucial skill because both need to act as the “voice” of the business. 

Content Marketing Elements
The Conventional Components of Content Marketing

5. Relationship Building 

Both the PR and marketing disciplines have a common aim. That is to build a good relationship with a target audience. Professional PR officers work to build positive relationships with the press covering their customers. Equivalently, market professionals want to create a similar connection with consumers. 

Now you know the similarities between the PR and marketing disciplines. They really have a lot in common. That is why setting marketing and PR apart can be a challenge. However, it’s not all the same. There are some noticeable differences between PR and marketing. Let’s see how they differ from each other. 

PR and content marketing: The differences 

1. The idea of selling vs. promotion 

The primary difference between PR and content marketing is the idea of “selling vs. promotion.” On the surface, marketing is about selling, while PR is about promotion. However, that’s not the only difference between marketing and PR. 

You could say that, ultimately, public relations is a subcategory of marketing. That is because marketing covers a large range of processes that aim at promoting organizations to the public. Although the goals of marketing and PR are promotional, there are key differences between the fields. 

Marketing is a set of activities, a set of institutions, and processes for creating, communicating, and exchanging offerings that have value for consumers, partners, and society overall. Basically, marketing is all about preparing to deliver products or services to the public, letting people know what you’re giving, and getting it to them. 

On the flip side, public relations has a more specific angle. That is to portray a positive outlook on a brand. The main idea behind public relations is to influence, engage, and form bonds with key stakeholders across numerous platforms. This is done to shape and frame the public perception of the particular brand. 

2. Measurement of success

PR and marketing professionals tend to measure success using different metrics. For example, in marketing, they measure growth using sales figures. On the other hand, PR will check the success rate by checking the number of people who are receiving and responding positively to their messages. 

Measuring Success of PR and Marketing
It Is Crucial to Track the Results of Your Public Relations and Social Media Marketing Efforts

3. Target Audiences

Both public relations and marketing officers work to generate positive impressions of their clients. However, they have a separate set of target audiences. For instance, marketers will employ meticulous research strategies to identify their target consumers. 

Wrapping up

There you go! Now you have learned all about the differences between PR and content marketing. We hope this article helped you understand each of these entities well. Also, now you can understand the similarities and differences between the two disciplines. They have a lot of similarities, which is why a lot of people confuse the two. However, the many differences in the approach and purpose establish that PR and marketing are quite different. Learning the differences and similarities can help you understand the nature of the two. It can also help to communicate effectively within an organization and with the public.

Investors invest in unprofitable startups

Why Do Investors Keep Funding Unprofitable Startups?

Startups come with a ton of challenges. It is difficult to make it in the startup world. Entrepreneurs struggle a lot to achieve the success they dream of. However, it can go terribly wrong for some businesses. In fact, a lot of startups don’t do well. We are certain that you have already heard the cautionary tales of startup businesses that have failed. So naturally, you may assume that there’s no hope for such businesses. No investor would be interested in a company that is failing or bound to fail. Well, that’s not entirely true. Investors keep funding these companies despite the high rate of failure. So, why do investors invest in unprofitable startups? What’s in it for them? People assume that the profitability of businesses. Well, investors have their reasons to do so. And surprisingly, they make sense. Let’s talk all about it in this post.

Why do investors invest in unprofitable startups?

So, why do investors invest in unprofitable businesses? What’s in it for them?

According to a recent research study, a lot of investors are willing to invest in startup businesses with little to no profits. The reason? Well, they do so because they hope that they will be successful in the long run. The study surveyed 2,000 venture capitalists and revealed anonymously their interesting investment strategies.

The research found that a lot of venture capitalists (46% to be exact) have funded startups with no profits before taking a chance on an innovative idea or business. Among the 1,500 people who were interviewed, most claimed that they had invested in at least one startup business with zero profitability. 59% of venture capitalists revealed that they did so because they believed these ventures could become profitable in the long run. 

Venture Capitalist Definition
Venture Capitalist Defined

So, what can we understand from this? The main point is that the initial profit-making ability is not the key. Investors start funding even before a startup business is profitable when they notice it has the potential to grow. And it’s a decision that will benefit them in the long run. Although investing in new companies can be risky, the rewards are potentially big. Now let’s see more specific reasons why investors invest in unprofitable startups.

Here’s Why Investors Invest In Loss Making Startups

1. “Unprofitable” means promising?

According to investor logic and experience, going for profitability too early usually means limiting growth. An extensive customer base needs to be created, and market research needs to be conducted as well. In certain exceptional circumstances, if the business is exhibiting greater profit in the beginning, something could not be right. 

Investors don’t walk away immediately when a company is losing. They carefully consider the future of the business before making any decision. A lot of investors don’t find alternatives like mutual funds and savings accounts lucrative and switch to other options with higher return opportunities. They notice that these startups have the potential for the future, despite the fact that they are not making any profits right now. The promise of future growth attracts investors to fund businesses that are at a loss.

2. Unprofitable businesses can still make money

Investors can still make money from unprofitable companies. VCs frequently sell their stakes and often go ahead with mergers and acquisitions.

3. The brand’s value

Another very good reason why investors invest in unprofitable businesses is the brand value of the business. Some of the biggest examples are Paytm and Zomato. These loss-making companies managed to raise funds only because of their brand value. Uber is also another example. As of recently, Uber has not made much profit. However, suppose a venture capitalist still invests in Uber. By doing so, the investor gets the chance to benefit from it. How? Well, because of the well-known name of the brand. Usually, startups market themselves in specific ways. They can also become relatively more popular than conventional businesses. Most of the time, investors tend to be interested in brands that are making no profits but still raising money. In that case, they bet their money on that brand value.

What Is Brand Value
Investors’ Decision to Invest in a Startup Is Influenced by Brand Value

4. Besides Financial Gain, There May Be Other Motives

When investing, profit is often one of the last things that investors think about. However, most VCs choose startups based on the industry they specialize in rather than the startups themselves. For example, a healthcare-focused investment company may seek market dominance by investing heavily in as many healthcare-related companies as they can. This reduces the amount of money and time their rivals can make from the market. This strategy has the potential to raise the value of their portfolios, which is typically more significant to investors than financial gain.

5. Recovering money 

A lot of investors invest in unprofitable startup businesses because they can recover their money even if some loss-making startups blow up. Short-term dividends are one way in which shareholders (owners) might be compensated for their investment in a business. The stock price may also rise owing to increasing demand, and all signs point to investors being motivated to buy shares in this kind of situation.

In the hopes that it would someday turn a profit, some investors may be ready to purchase shares in a firm that is currently losing money. Since they are ready to invest when others are not, these investors—often referred to as “value investors”—have the perception that the business has untapped potential. Investors see it more like gambling intended to back up the net investment gains.

6. The startup’s vision and mission

Some investors focus more on the vision and mission of a business than on the profitability aspect. They invest because they believe in the mission and vision of a startup, despite its making profits. For example, many investors are interested in investing in tech startups. Most startups, particularly tech startups, use innovation as the main foundation to drive success.

Investors invest in unprofitable startups because of vision and mission
Investors’ Decisions to Fund a Startup May be Influenced by its Vision and Mission

So, suppose investors resonate with the business idea and see potential opportunities. Then they do not hesitate to invest their money in the new startup business.

Wrapping Up

There you go! We talked all about why investors invest in unprofitable startups. At first, it may seem confusing as to why they would do so. But, there are quite a few reasons. Now that you have read them, you can understand that their decisions actually do make sense. It is not always the initially profitable nature of the business that attracts investors. There is more to it. Investors understand that although a company is in losses right now, investing in it can benefit them. So, if you are raising funds for your startup, this is good news for you.

Why Investors Reject Startups

Top Reasons Why Investors Reject Startups 

The startup world is never easy. It comes with a ton of challenges. You may feel like you are walking on a tightrope trying to balance your startup and yourself. Clearly, the obstacles can be overwhelming. For example, raising funds for your startup can be a significant challenge. In this case, investors become your best hope. However, they are also one of the biggest hurdles you may have to face. They are the ones who will fund your startup’s growth. They could be dream-makers or deal-breakers. If they like your idea, then great—you can get the money you need. But they might say no and leave you confused, asking yourself why they rejected your idea. Or maybe they don’t see the potential in you to implement it. Do you know why investors reject startups?

Of course, your first reaction to the rejection could be “how dare they reject my idea? It’s perfect.’ That’s fair because as the creator, you would always want to defend your idea. But rather than getting upset, it would help to understand what investors think and why they reject the idea of investing in your startup.

Business Plan for Success
You Must Get Everything Right to Get That “Yes” from Investors  

The perspective of investors 

Now, let’s understand it from the perspective of an investor. As much as startup businesses are risky, investing in one is riskier. They want the best of the best, with a higher probability of success. They don’t want to invest in a business that they feel has no potential. So, they turned them down. And that’s why in this article, we will discuss the top reasons why investors reject startups. This will help you understand what makes investors work away from an idea. Learn from these reasons and avoid them at all costs. 

1. The business idea isn’t promising 

The biggest reason investors reject startups is the business idea itself. Sure, you may think that your business idea is perfect. But investors may notice that it does not have potential and turn down investing in it. Remember that the investor doesn’t see the idea as viable in its current state. In this case, you need to show proof of the potential of the idea to be successful to convince investors that the business is worth investing in.

2. Your business plan is not good enough

Your business plan plays a key role in winning over investors. Not just any business plan. It should be a complete, well-structured plan. Suppose you were unable to express your business idea to the investors properly. If that happens, they will not be interested in your startup idea. It is important to be able to sell future prospects to your investors. If you cannot convince them that you are dedicated to the business and if they cannot understand your plans, they will walk away from your startup. Make sure to prepare an impressive business plan to wow the investors. It should include the structure of the business, the goals you want to achieve, projections, documentation, plans, and sales. 

3. Lack of market knowledge 

Another major reason why investors reject startups is your lack of knowledge of the market. Just imagine that you are entering the market, but you are clueless about it. You don’t have the necessary details about your customers, nothing about your competitors, regulations, documentation, and other essential information. How do you think you’ll survive then? Of course, you won’t be able to. If an entrepreneur is not familiar enough with market regulations, investors will be disappointed and turn down the idea of investing. 

Why Investors Reject Startups - No Market Knowledge
Conduct Thorough Market Research Before Presenting Your Business Idea to Potential Investors 

So, how can you avoid this issue? The best solution is to be knowledgeable about the market. Remember to conduct intensive market research before presenting the idea to investors or launching your startup. Your market knowledge demonstrates to investors that you did your research before coming up with the business idea. 

4. Your team is not competent enough

Teamwork makes the dream work. You certainly need a great, well experienced team, and that could be a dream to work with. That’s how you can make the dream of success a reality. Starting from your leadership, each employee’s role matters. A strong team is more likely to bring the project to success compared to a weak or inexperienced team. Investors know this, and they consider the team when presented with a business idea. 

They prefer experienced and qualified individuals who also have a great portfolio in a team. Such teams stand out to them most because they are more competent and productive. But suppose they learn that the team is not up to the mark or lacks experience? In that case, they will choose not to invest and turn down the idea of investing. On the other hand, keep in mind that practically everyone participating in the company will have an inevitable learning curve with regard to the business idea itself. Potential investors will understand this as they are well aware of such inevitable factors. 

So, how can you avoid this happening to your startup? Well, the best way to solve this is to be more vigilant and decisive when you are building your team. Maintain constant communication with the members of your team and work to resolve any problems relating to performance or internal strife. When you’re an entrepreneur, the most valuable intangible asset you have is your team.

5. You are approaching investors in the wrong way

Another reason why investors reject startups is the way they approach investors. Most of the time, inexperienced entrepreneurs are clueless about how to approach investors. An example of this is cold calling investors. It is a big no-no. By doing so, you are not doing any favors to yourself or your business. Instead, you are only making sure that your business idea is going down the drain without even being considered. 

So avoid cold-calling investors at all times. A better approach would be to try and figure out the investors carefully. It is way better than just sending around a plan to every investor you can find in the book. Instead, you can look to get referred by another investor or entrepreneur. It would help you get attention and stand out to investors. 

5. Poor leadership skills 

This point loosely relates to the point we previously made about teamwork. But leadership alone deserves to be discussed separately because it plays a critical role in a business. Of course, a leader is part of the team. But the role of a leader is more than a team player. Leadership is the link that holds the team together. If there are issues in the way that you lead, it can take down the entire team and eventually the business itself. 

Leadership for Startup Success
Everything About the Startup Depends on How Good of a Leader You are

Your leadership skills are vital to the success of the project. Since investors know this, they are very keen to judge your leadership skills. As the leader, you represent the business idea. If they notice that you have poor leadership skills, chances are they will not invest in your startup. 

Apart from leadership, investors also observe your overall character and integrity. And if they find all these factors to be in place, they are more likely to go forward with the idea of investment. To increase your chances of getting approval from investors, you should improve your leadership skills. Plus, remember not to oversell yourself. Stick to your basics and try to convey your message straightforwardly and honestly. Investors always prefer entrepreneurs who have a simple approach to presenting their ideas and are genuine about them. 

6. You are uncoachable

Another reason why investors reject startups is your attitude. Yes, that plays a big role as well. Let us explain. Building a company from a startup is a huge learning experience. With its challenges and interactions, you learn a lot. Although they can be overwhelming, they also eventually make you humble. Of course, it comes with success and time. On the flip side, inexperienced entrepreneurs may not have this quality. They would show ego and stubborn behavior. Basically, they are completely intolerant of criticism and want things their way. This is a bad look for investors. 

Suppose an investor notices that you are unable to take constructive criticism and are rejecting advice and ideas coming from another person. Then the investor will lose interest in the idea of investing in your company. Investors will assume that you are uncoachable. Most investors follow this rule and walk out when they notice the startup owner has the attitude of “my way or no way.” 

7. Your marketing techniques are not good

Another major reason why investors reject startups is a poor marketing plan. Some entrepreneurs may assume that a proper business plan, a good product, and a competent team are all it takes to get investors on their side. However, that’s not true. You are missing a key ingredient there. Your marketing plan matters a whole lot too. Don’t forget that. If it’s not up to the mark, investors may reject the idea despite the overall business idea being good. 

So, why is marketing that essential? Well, it is a crucial element now more than ever. As you know, your product depends on customers. In today’s day and age, there is a ton of competition in the market. With such a competitive nature in the market, your product needs to be able to stand out. To do that, you have to rely heavily on marketing. But it should be innovative enough to capture the audience’s mindset. It cannot be marketed just for the sake of it. You have to understand the right ways to grab the buyers’ attention through your marketing campaign.

A carefully well-structured marketing plan can increase your product sales and give more value to your brand. When investors see this well-executed marketing strategy, it increases their willingness to invest. This is due to the fact that there is a very high probability of success when it comes to the sale of products.

8. Lack of focus and commitment 

Is your startup business your dream? Are you willing to work towards achieving success while overcoming all the challenges that it brings? Are you committed and focused enough to make your startups a success? If it’s a definite yes, no problem. However, if you are unsure, you have to rethink if you are committed and focused enough. That is because if you are not, investors will see right through you and decide your startup is not worth investing in. 

Lack of Commitment - Reasons Why Investors Reject Startups
Your Commitment Is Essential to the Success of Your Startup 

You should have a good track record and a laser-focused approach to make your main target come true. Remember that you are the creator. You have to be completely invested in your startup more than anyone else. 

9. Your pitch deck is not good

Alright, hear us out here. There is no stone-carved rule about the ideal pitch deck. That’s true. However, that doesn’t mean there are do’s and don’ts. Knowing what works best can help you craft the most effective pitch deck for yourself. At the end of the day, if the pitch deck is not effective enough to get investors to invest in your startup, there is no point in having a pitch deck. Some of the major mistakes include: 

Not clearly defining the problem your startup is solving

It is one of the major points that investors look into during your pitch deck. It explains what and whom the business is meant for. This point is what makes investors interested in your undertaking. Plus, it showcases your understanding of the market. But suppose you failed to explain the problem you planned on solving? In that case, investors will conclude that you, as an entrepreneur, don’t know your customers’ needs as well as they do. If they assume so, they will turn down your business idea. 

You haven’t considered the risks

Pretending that your business is risk-proof is not a good look. If you try to cover up potential risks from investors, it shows that you are untrustworthy and dishonest. Also, remember that even if you avoid mentioning possible risks and issues that might block your business from implementation, investors will still ask you about them. You must analyze and present them honestly. That way, investors will notice that you are trustworthy to work with and are aware of the possible challenges along the startup journey. 

Unorganized pitch deck form

Suppose your structure and formatting are not clear. It could be the text being too long with small font sizes, little to no visual aids, and typos and grammatical mistakes. Structural mistakes will also make the investors feel like there is no flow in the pitch and the business plan as a whole. This type of presentation is going to take you down. It will not get you the investment. Such formatting will make it hard for investors to understand your business. Plus, it will make them not want to read it at all and wish that they were somewhere else rather than listening to your pitch deck. 

Asking too much

Yes, you need funding. But remember not to ask too much right off the bat. If you plan on asking for more money, remember to have some success stories prepared to show and base your request on. 

10. You have better competitors

Sometimes, your competitors are too strong. That could be another reason why investors reject startups. Investors may see that your startup idea is being done well by someone else in the market. And if they don’t see that you could be a strong enough opponent to the already established competitors, they will turn your business idea down. If you can show that your business has a plan to overtake the competitors, you will have a better chance. 

11. Poor Execution Plan

Another reason why investors turn down a startup idea is the poor execution of a plan. Investors may ask you how you plan on achieving your vision and goals. When they do, you must have an impressive and feasible answer to that question. If you are unable to do so, then it will show that you are not sure about how to execute your plan. Your idea may be the next big innovation. But if you still fail to explain how you’re going to achieve your targets, you might lose the investors. To avoid such mishaps, be prepared to explain your next steps and moves to show that you know how to execute your vision going forward. 

Proper Execution for Startup Success
You Must be 100% Sure of How to Execute Your Plan

Wrapping up 

Startups are never easy. There are so many challenges that an entrepreneur has to overcome to make their business successful. One such hurdle you have to overcome is getting investors on your side. For that, you have to know what investors like and don’t like about startup business ideas. What exactly makes them reject certain business ideas? Through this post, you got to learn  major reasons why investors reject startups. 

Now you know what they don’t like. Learning these points must have helped you to understand the reasons for startup rejections. You can also use this information to make necessary changes in your business before presenting it to investors. Avoid these mistakes we mentioned, at all times.

Startup Marketing Mistakes

Marketing Mistakes That Kill Your Startup

In all honesty, starting up may feel like navigating through a tidal wave. It can be a real challenge to push through to achieve success in a startup business. A lot of such businesses unfortunately fail as well. So, why does that happen? Well, their high failure rate is due to multiple factors, some structural, and some circumstantial. Startup marketing mistakes also can lead to long-term startup failures. You might not be able to avoid all these mishaps. Some could be out of your control, of course. However, your decision-making and actions related to marketing could be a reason that could lead to the failure of your startup. 

That’s right—marketing mistakes startups make can fail the business eventually. For example, you might make mistakes in the way you approach marketing. Since there are a ton of marketing techniques to choose from, some people end up picking the one that doesn’t suit their particular business model. This can be a tragedy because even if they made the right choice in terms of strategy, they would still botch the execution. 

Why is an effective marketing strategy critical? 

You may have the best business idea and an incredible team. But that is not all it takes. If you don’t have an effective marketing strategy in place, your startup will not be able to outshine your competitors in the eyes of the public. In that case, you will not get customer support. And without clients to support your business, you can already guess what would happen. Yes, the startup will perish. 

The good news is that you can avoid a lot of mistakes along the way. You can easily overcome a lot of startup obstacles if you avoid such mistakes. This post is all about letting you know what not to do with your startup business with regard to marketing. If you keep these tips in mind, you will not go wrong. 

Startup marketing mistakes to avoid 

Pay thorough attention to the following startup marketing mistakes, and make sure you avoid them at all costs. 

Startup Marketing Mistakes #1: Bad Planning 

Working without a plan is never going to get you anywhere. The same rule applies to startups too. The success of a startup business depends a lot on good planning. If your planning is bad, you are bound to fall flat on the ground. Usually, startups are hard-pressed on time, which in turn means doing things in a rush. However, rushing things will very rarely work when it comes to marketing. Sure, it is not always the case. In fact, there have been instances of spontaneous marketing producing good outcomes. But keep in mind that such cases are few and far between.

Startup Marketing Mistake - Bad Planning
Bad Planning of the Startup Marketing Strategies Can Lead to Unexpected, Sudden Failures 

If you don’t have a well-thought-out marketing strategy, your business is basically taking a chance. It’s like rolling dice, hoping for several good rolls in a row. In short, you are taking a huge risk with such an approach. Instead, it would be better to handle marketing for a startup in a preplanned, systematic, and organized manner. 

You have to remember that this is not going to guarantee your plan will work out for sure. But still, you will know what not to do the next time. Once your business figures out how to create a marketing plan, every future campaign will become much easier to execute. 

Startup Marketing Mistakes #2: Poor Resource Management 

One of the most common problems faced by startups is the lack of resources to go around. As you know, developing a product or a service for the first time requires significant investments. The problem is that this can leave other parts of the startup operation short on cash. When it comes to marketing, this is not as big a deal as it first appears. 

You can scale the marketing approach to fit your particular budget. It is especially easy thanks to the age of digital marketing. Remember that the real problem with marketing when it comes to funding is that it is pretty easy to end up spending so much unnecessarily. As a result, you will not have enough for the most important tasks. So it is important to come up with a marketing plan beforehand – with a strategy in place, you will be less tempted to blow your budget on going after the latest trends. Instead, you will get the chance to focus on what works for the business. 

Startup Marketing Mistakes #3: Inappropriate Task Allocation 

Teamwork can make the dream work. But of course, if the team is suffering, it can be a nightmare. Barring some exceptions, startups are, by and large, companies that hire a few employees for the most important roles. Usually, this means that individual employees often have to handle multiple parts of the business operation. For example, a programmer might have to handle development and basic marketing at the same time. It can work sometimes. However, there are instances where it can go terribly wrong. Such multi-tasking can lead to a half-baked product. This is how things usually go with marketing for a startup. 

Startup Marketing Expert
For Effective Startup Marketing, You Must Employ a Qualified Marketing Expert Among Your Team

One employee will end up doing a task on the side while focusing on something else, which will lead to sub-par results. You must realize that half-measures simply don’t work when it comes to marketing. It would be best if you could hire a qualified marketing specialist to make things run smoother. Now that’s a worthwhile investment. 

Startup Marketing Mistakes #4: Being Clueless About the Target Audience 

A majority of startup businesses have worthwhile business ideas. They really do. In fact, sometimes certain startups truly have what it takes to turn good products and services into what customers can buy. But if you don’t take the target audience into account, you can go downhill for sure. You will be shocked to know that only a few startups take the time to consider who their products will be for. So, suppose you make the mistake of not trying to figure out who your target audience is. Then, you are basically relying solely on luck once your products and services hit the market. 

You are taking a huge risk here. Because you don’t know your customers, how could you be sure that they will buy your products and services? This is like playing peekaboo, and your plan might backfire terribly. On the other hand, let’s say you know exactly all you need to know about your target customer. Then you can keep that information in mind throughout each stage of the business and marketing processes. This way, you can modify and alter things, including marketing, as per customer likes, dislikes, and demographic information. Such an approach will help you attract the attention of your target audience. 

Startup Marketing Mistakes #5: Neglecting Traditional Marketing 

Startups are a relatively novel concept. So most of the time, businesses tend to rely on only digital marketing to promote their product or service. This includes social media, email marketing, etc. Of course, the strategy suits the modern world and it certainly helps promotional campaigns a lot. However, digital marketing isn’t the cure-all as some might think. Sure, it can help a business up to a certain extent. But neglecting traditional media isn’t the right call either. That is because there are still a lot of people out there who still prefer to find business-related information from traditional media. Targeting these channels with marketing material can be quite lucrative, but more often than not, startup businesses don’t use them much. 

It’s true that digital marketing is the new norm

Even though digital marketing is the new norm, advertising in newspapers, on TV, radio, billboards, at tradeshows, etc. will give a startup the edge it needs over competitors that choose to remain online. Also, when choosing advertising mediums, it is important to consider your audience demographics as well. This also dictates which medium you should focus on more when promoting your products. 

Suppose your ideal customers are 18–35 years of age. According to statistics, over 90% of the 150 million people on Instagram are under the age of 35. In that case, you can choose to advertise your products mostly on Instagram. That would be the best platform for you to reach your customers. On the other hand, if your customers are over the age of 35, you can rely mostly on traditional media outlets. It’s all about knowing where your customers are. That’s who you have to reach out to. 

Benefits of Traditional Marketing for Startups
Traditional Marketing Also Comes with Benefits That You Shouldn’t Overlook 

Startup Marketing Mistakes #6: Failing to Monitor Marketing Performance 

A lot of startup businesses make the major mistake of adopting a fire-and-forget approach when it comes to marketing. They would come up with effective marketing strategies right out of the gate at first and assume that’s all the work needed. They assume that now they can sit back, relax, and watch as customers start pouring in. However, it does not work like that. It might work for a very short period of time. But you cannot expect it to be the case in the long run. 

Keep in mind that the purpose of marketing is to nurture your target audience. So, you can’t afford to leave them unattended for long periods and expect good outcomes. This way, you will eventually fail, although you started out strong. A more effective way is to keep monitoring how your campaigns are performing over an extended time period. That way, you can make the necessary modifications when needed. If you don’t, you risk losing your customers due to some problem that you could have easily prevented if you had been paying attention. And that’s a waste of a lot of hard work. 

 Wrapping up 

There you have it. This post was all about marketing mistakes that kill your startup business. In other words, this is all about what you should not be doing as a startup business owner related to marketing. Startup businesses can be a difficult area in general. There are a lot of obstacles to overcome, and you need to put in a lot of effort, time, and hard work to achieve your dreams of success. 

Although there is no one-size-fits-all solution to overcome startup obstacles, you can prevent them through careful planning. We hope that the tips you learned today will help you avoid any mistakes in the marketing process, as you navigate the startup world towards success. With these tips in mind, you will not go wrong.

Startup Marketing Strategies

The Startup Marketing Strategy That Is Really Essential

Do you have everything for your startup’s success? Innovative idea- check. Excellent product- check. Fantastic team- check. It sounds like you have it all. But, there is one more thing. And that one missing piece can make or break the entire plan. That is marketing. Ask any business owner and they’ll tell you how crucial it is. You won’t be able to achieve success without a proper startup marketing strategy. At times, coming up with a good marketing strategy for your startup company can be quite intimidating. Don’t worry though, we are ready to tell you all about  what you need. Through this post, we hope to introduce you to some of the most important market strategies that will help your business reach new heights. Have a look.

Essential Startup Marketing Strategy for Long-Term Success

It is really necessary to have a sound marketing plan in place if you want to boost the productivity of your business. This is why you need to focus thoroughly on the following marketing tactics:

Startup marketing strategy 1: Begin with a good strategic position

A strategic plan is the company’s guide or outing plan. Where you’re aimed is your vision and why you’re going on your mission or central goal. You shouldn’t start your startup marketing strategy randomly, placing ads in random places and immediately posting them to social media networks. This one requires a proper strategic plan.

A Solid Strategic Plan for Startup Marketing 
A Solid Strategic Plan Is Essential for Startup Marketing 

You have to collect the right data and information to be satisfied in forming strategic decisions. You can easily collect necessary information through a web search on the research of large scale, market and industry trends. You can also obtain client and employee surveys or reviews and gain information about your competitors from secret customers or shoppers, trade shows, or industry reports. As you go on, you will get to figure out your business’s strengths, weaknesses, and threats. Such information can be incredibly helpful to enhance your startup and to prepare an appropriate strategic plan.

Marketing Strategy 2: Get on Social Media Platforms 

As you know, startups are normally short on cash. You might not have a ton of money to spend like the big giant companies. In this case, you need a good strategy to work with the money you have. One of the best strategies is to leverage social media platforms. It is a great option because social media is globally popular, cheap, you can control the budget, and, of course, it works well. 

You can make accounts on platforms such as Instagram, Facebook, YouTube, etc. Instagram and Facebook offer multiple options for advertising. For instance, you can create sponsored ads for your target audience. Likewise, you can have in-feed video ads too. Try it out on Instagram too. Over there you can promote using stories or feed ads. 

An Overview of Social Media Usage
An Overview of Global Social Media Usage

Keep the costs in mind

Earlier, we mentioned that social media is cheaper, which is a great advantage for a startup company. However, you have to check your budget plan before going overboard with social media promotions. Make sure to balance benefits and expenses. According to WordStream, the average cost per click for Facebook is $1.72, and the cost per 1000 impressions is $9.08. 

Similarly, the average cost per click for Instagram is $1.28 and the cost per 1000 impressions is $6.70. So it is important to keep those costs in mind when you are promoting. We suggest finding a perfect balance by catering to both of these platforms. That way, you are not risking all your money on just one social media platform. You don’t want to risk all your eggs in one basket, right? 

YouTube Is a game-changer 

You cannot undermine the influence of YouTube. It is the second most visited website, and your business will gain instant exposure there if proper procedures are followed for improving user engagement, such as view counts, etc. So, how can you promote your business on YouTube? Well, you can make your own channel there and upload some interesting content to it. Also, remember that simply uploading and leaving it there would not work, as it won’t be automatically indexed among the top results by the search engines or even in the YouTube search itself. So, you will have to get some assistance from social media marketing experts. For example, you can create ‘How To’ videos or tutorials. It will give you credibility and connect you with the audience more. Plus, it is a way to address your customers’ questions by providing answers. 

Startup marketing strategy 3: Email Marketing 

Another method is to use email marketing. It is a great way to get in touch with your target audience. Take steps to capture the email addresses of your clientele at any possible touch point, including your official website. Speaking of the website, take measures to make your website have a professional look. It is especially important if you are an e-commerce business. We suggest you get it designed by an e-commerce web design company. 

You can also create a popup for subscription on the website and entice visitors to subscribe. It would be far easier for you to send emails once you build a database. For instance, you can inform them about discounts, promotions, or news about your business. 

When to start email marketing? 

When we say email marketing is effective, we mean it. Can you believe that for every $1 that you spend on email marketing, you get $38 in return? That’s right. Plus, email marketing is even more effective than Facebook ads. The reason is that most of the emails that you send are delivered to the customer’s inbox. On the other hand, only some of your target audience get to see the Facebook ads. It is more effective than Twitter as well. 

It has been found that an email campaign has a 3% average click-through rate. On the other hand, a tweet has only a 0.5% average click-through rate. The stats speak for themselves. So comparatively, you are 6 times more likely to get a client to click on the email than with Twitter. Email marketing is powerful, and you should make email marketing a big part of your digital strategy. 

Startup marketing strategy 4: Figure out your target audience 

You may have a superb marketing plan, product, or service. However, that alone will not be enough. There’s more to the picture. The biggest part is played by none other than your customers. A solid clientele is necessary to enhance your small business.

Startup Marketing Strategy - Find Out Your Target Audience
Defining Your Target Audience Is Critical for the Marketing Plan’s Success  rget Audience

But who are your customers? Determining your target audience is crucial. Here are a few suggestions to help you with that: 

Recognize the basic demographics of your target audience. This includes information like their gender, age group, and location. Analyze their personalities or shopping behavior which allows your business to be more relatable to their interests and needs. 

Such studies will help you to make your brand more customer-friendly. 

You will be able to refine your specific audience and identify their needs so your services can satisfy them.

Marketing strategy 5: Start a PR campaign 

To take things to the next level, start a PR campaign for your business. It can definitely give you effective and quick results. That is, if you take the right actions, of course. So, if you want to perfect your PR campaign, you should know your target audience well. Your PR campaign should help you achieve your goals. So, before launching your campaign, define the specific objectives you want to achieve. For example, your goal could be to build awareness about your product or service or to improve your brand image. 

Now that you have set the goals, you can launch your PR campaign. It would be best to work with small publications at this stage. You don’t have to target big publications for the first time. You can try it out if you have a worthwhile announcement for a large audience. Start small with guest articles, blogs, or even social media influencers. Suppose you have a very interesting and innovative product. In that case, you could send in your pitches to journalists to cover your story on the product.

Wrapping Up 

There you have it! Now you know the importance of having a proper marketing strategy. Clearly, marketing is crucial for your startup. However, marketing just for the sake of it is not going to be enough. It should be properly executed. 

Through this post, you have got to learn some of the most effective marketing strategies for startups. Of course, you can choose any or all of these strategies to grow your business. By incorporating them, you will surely reach out to new customers and generate more sales.

Product Launch Plan for Startups

The Ultimate Product Launch Plan for Startups

Startups are developing new products every day. And do you know what the most crucial part of the startup process is? Well, it is the launch. Launching a product is always risky. And if it fails, the product may not end up being released. However, yours doesn’t have to fail. You can improve your chances of success with a good product launch plan. Today we will give you all the information you need about it. We will discuss “what is a product launch plan,” how to create a product launch plan, and also marketing strategies to promote your product launch. ” To learn all about it and more, keep reading. 

What Is a Product Launch Plan? 

So, what exactly is a product launch plan? Well, it is a roadmap that includes the deliverables, the expected delivery date, every step involved in making the launch occur, and what is required to keep the product experience smooth and ongoing . They include steps that discuss : 

  • Product development and testing 
  • Branding and marketing 
  • Sales and post-sales customer care 
The Definition of "Product Launch Plan" 
The Definition of “Product Launch Plan” 

Timeline milestones should be included to show testing deadlines, beta version launches, and the product or service release to the market. Every step makes it clear how close you are to a market-ready product. It could be software, an app, stationary, or whatever else that you plan on introducing to the market.

The benefits of having a launch roadmap include:

  • You and your team know the goals that need to be accomplished and when. 
  • Investors or crowdfunding contributors (if you have any) are kept in the loop. 
  • Everyone knows the deadline. 
  • You can easily evaluate the effectiveness of your product launch marketing strategy. 
  • You know your target customers and your competitors. 
  • A clear idea of your business and its products and services in detail. 
  • Identifying the marketing approaches you will use 

Basically, it helps to turn your plans into action, working as a blueprint for the successful launch you want. 

A Product Launch Plan’s Elements

So, what is the perfect product launch plan? We have put together a list of elements that should be included in a marketing plan for a new product launch to make it fail-proof. 

1. Specify the intent of your business

First of all, you have to point out what your business intends to do. As you are outlining your marketing strategies, you should come up with action-oriented reasons as to why your business is more reliable. By doing so, you will be able to help your customers figure out your business, products, and services well. 

2. What is the potential audience? 

First, you have to figure out which category of consumers you are designing the product or service for. It shouldn’t be limited to a vague category. Instead, come up with a detailed description of these consumer sets that you are targeting. Be as specific as you can. That would make a huge difference. By describing the target audience in detail, you get the chance to understand what you want to achieve. 

Identifying the Target Audience
Identifying the Right Audience Is Critical for Startups in Strategizing Product Launch Plans 

After that, you can check the effectiveness of the pitch and product viability. 

3. Learn About Your Competitors 

Don’t forget about your competition. Knowing them and what they are up to would help you with your work. Unfortunately, most startup entrepreneurs overlook this step. They don’t tend to spend enough time understanding their competition. But knowing your strengths and weaknesses with a strong analysis of your competitors can help you achieve your targets. 

4. Brand Positioning Statement

Keep in mind that your brand and what it plans to do for your customers will play a key role in your marketing arsenal. It can be your strongest competitive advantage. You need to come up with a simple and comprehensive statement of how you plan to meet customers’ requirements. 

You can go with a solid brand positioning statement that is target-oriented to solve problems. It is a smarter approach. 

5. Conduct Beta Tests 

Once you finally introduce your product to the market, you can conduct tests to get feedback from people. You should run these tests on actual consumers of your product or service. Ask them about what they thought about the product and what they liked and disliked about it. You can also ask for suggestions from customers to improve any cons regarding the product they consume. By conducting public beta tests, you can present a product that people actually need. 

Beta Test for New Products
Conducting Beta Tests for Getting Customer Feedback Is a Must-Do 

The customers’ point of view is important. After all, you are creating the product for them. So they need to have a say in what the product should be. Their point of view is useful to bring the product to its maximum potential because customers see the product from another perspective that your team may not be able to provide. 

6. Create and perfect your pitching deck

You have to prepare a pitch deck to get investors in pitching sessions. You must follow the standard pitch deck ‘rules’ here. Of course, there are no stone-carved rules for pitching decks. However, there are unwritten laws such as keeping the presentation simple, not having more than 19 slides, etc. Basically, it should be something that can get investors on your side within the minimum time period. 

It is necessary to not fill up the slides and bore investors with an overwhelming amount of information. But you may feel as if you have a lot to communicate with them. In that case, you can prepare two separate pitch decks. You can use it to pitch to investors during the sessions. This one should be more simple and more visual-oriented without a lot of details. The other pitch deck can be used to include detailed information you want investors to know about the business. You can email this to investors and attendees. This will help them get an in-depth understanding of your product. Plus, if investors were not clear about your product idea in the pitching session, they would become interested in it after reviewing its potential. 

7. Take part in startup contests

You have thus created a pitching deck. What’s next? Take part in pitching contests. When entering contests, consider the following factors:

Do not make blind pitches

Make sure to read the competition’s terms. Many pitching events ask for a share in your business simply for participating!

What advantages does pitching provide for you? Analyze the benefits and drawbacks of the competition before making your pitch in the session. 

There is one general norm to follow. You should apply if the competition provides rewards even if you come in last. If not, you should stay away. Networking with investors, meeting new partners and co-founders, and other things may all benefit. But the advantages have to be measurable.

Maintain command of the pitch

Although you are making a pitch to experts, the business is yours. Therefore, maintain command of the pitch. If someone tells you that your startup has no promise, won’t address the issue, or anything similar, don’t take it personally. Simply express your confidence that your product can address the problem while being assertive. It’s not the point of pitching meetings to argue or debate. Simply put, investors are looking to see whether you have potential.

Pitch sessions ultimately serve two purposes: attracting investors and marketing your business. Perhaps you can even get customers from these meetings.

8. Determine Announcement Platforms for Startup Product Launch

Although the aforementioned two ideas are important for a product launch marketing strategy, they are related to fundraising and investor presentations. Most businesses rely on their own resources since not all of them are fortunate enough to get funding. Even if your firm is self-funded, you may still get the word out by using sites like BetaList, Hacker, Product Hunt, News, and many more.

The terms and conditions differ for each of these platforms for the introduction of new products. To prevent being banned, make sure you read them before submitting your products.

9. Promote through Press Releases and Announcement Websites 

It would be best to promote your startup business through announcement sites and press releases. You could say that online press release submission websites are not the most popular anymore. However, they can still be useful for a new product launch marketing plan because websites are scraped for search results by search engines. Plus, they help get the word out among journalistic circles. 

How to write a press release? 

Writing a press release is not as challenging as you think. To make it perfect, you simply have to follow a few tips, which are laid out below for you: 

  • Come up with an attractive headline (preferably short and communicating the idea quickly to the reader). 
  • Explain your startup story. 
  • Keep things brief but comprehensive. 
  • Write in the inverted pyramid style
  • Include your contact information. 

What Are Your Marketing Strategies? 

So, now you have to see how to reach your customers. Of course, there are mainstream media like print and broadcast approaches. However, in today’s day and age, you cannot ignore digital marketing channels. They will surely benefit your startup. Here are some of them: 

1. Social Media 

As you know, social media is at the center of modern-day marketing. You cannot neglect this part of your business marketing plan. Through social media, you get the chance to reach a wider audience, which in turn may be your potential customers. You can communicate an idea quickly and get instant feedback through social media. 

We recommend having an attractive blog site. Having an active Instagram or Twitter page can help your startup grow. 

2. An Active Blog

An active blog is a must for businesses today. It is useful to promote and amplify your company’s digital presence. Through a blog, you can regularly present helpful articles that can help keep visitors interested in your blog and get an understanding of your business, its services, and its impact. 

3. Email Marketing

Email marketing is an effective approach to promoting and marketing your startup business. Your organization can incorporate email marketing techniques to expand your business’s presence and reach. You can definitely employ newsletters, promotional emails, and campaign emails to help the cause more.

Marketing Strategy for Product Launch Plan for Startups
Marketing Strategy for Product Launch Plan for Startups

Product Launch Marketing Checklist

Here is a brief checklist for you to refer to for your product launch:

  • Develop a story behind the product launch. 
  • Prepare a launch plan. 
  • Define your success metrics. 
  • Identify marketing channels for launch.
  • Successfully complete the Beta testing process.
  • Confirm your product launch date. 
  • Talk with your employees about the product launch.
  • Outreach media and journalists (PR.) 
  • Prepare for the launch event (if you are holding one.)
  • Come up with social media posts about your product launch.

What is a Product Launch Plan? Wrapping up 

There you have it! Now, you have got to know what a product launch plan is and why your startup needs it. Of course, launching a product is risky. However, if you plan it out well, things will go smoothly. So, you can increase your chances of success by coming up with a product launch roadmap first. 

Through this post, you learned what a product launch plan is, what should be included in a product launch plan, and how to make the most of it. We hope you will be able to make a perfect product launch plan now that you have learned it all. And we wish your startup to be very successful.

Boost Productivity of Startup

How to Boost the Productivity of Your Startup?

Through this post, we will let you know tips on how to boost the productivity of startups. We know how much your startup means to you. Starting a business from scratch is an incredible accomplishment for any entrepreneur. Watching your company thrive and grow is surely your ultimate dream. Nobody said it was going to be easy, though. The success you dream of will not happen overnight. Rather, it happens over time. It takes a lot of consistent effort, teamwork, the right communication, and a goal-oriented approach to make your startup a success. You will have to take one step at a time and one day at a time to build your startup to its fullest potential.

You need to make sure every step of the way is clear by avoiding obstacles and reducing mistakes as you move forward on your path to success. As an entrepreneur, you can do so much to boost the productivity of your startup. So, if you want to know how to boost the productivity of your startup, keep reading to find out all about it.

How to Boost the Productivity of Startups 

1. Early Customer Feedback

As you know, customers can make or break your business. At the end of the day, your products and services are for customers. So, it is crucial to listen to their feedback. Taking customer input can help you figure out the issues with your products. Their constructive criticism can be useful to fix those mistakes and issues.

Early Customer Feedback
The Many Ways to Gather Early Customer Feedback 

Integrating your customers’ user requirements early could help you get rid of unwanted features in your product. However, the main purpose of integrating user requirements is to make the product functional in the way the customers require it to be. If you know for sure what your clients think, you can save your time, effort, and money by discontinuing any features they do not need.

That is why it is essential to refine your perspectives as soon as your product develops. Maybe you plan on making revisions later. But we recommend doing revisions earlier instead. That way, only a few aspects of your designs will be affected. Who knows-maybe the ideas you think are less important will turn out to be the deal breakers for the majority of the consumers.

2. Increase Your Efficiency Via Technology 

Unclear tasks can cause a lot of stress among employees. Automating tedious tasks can help lessen stress on your employees. That way, they can focus on activities that require rigorous deliberation. You can do this easily thanks to the variety of technology available nowadays. One type of software we recommend you use is the field service management system.

A field service management software lets you optimize a task by providing a workspace that can set schedules, perform inventories, update customer details, and so on. Make sure to pick a software program that can streamline repetitive processes like tracking, performing analytics, and scheduling.

Also, keep in mind that it is essential to effectively manage your time and resources to ensure your productivity. Remember not to assign your employees too many tasks. It is not a good idea as it will overwhelm your workers rather than encourage them. As a result, it can cause them to miss out on tasks with higher priorities. That should not happen when you want to boost the productivity of your startup. So, to avoid such mishaps, you can get help from technology to manage tasks of lesser significance to boost your employees’ efficiency.

3. Adapt to a Smart Routine 

As a startup business, you may have loads of work to do. We can imagine that your to-do list is overloaded with all kinds of tasks. It is understandable, as you have to make connections, attend meetings regularly, make decisions, solve problems, and more. Plus, you have to monitor your team, search and appoint people to different job roles, and create presentations, and perfect pitches.

Aside from all that, you have to build your social media presence as well. That is a lot of work, and it sounds overwhelming. You may feel like you are running errands 24/7 without even having time to enjoy a decent meal. However, being busy doesn’t always mean being productive. Not to undermine your hard work and efforts, but productivity does not come from being overwhelmingly busy.

Instead, productivity focuses on the outcomes that contribute to your aims and goals. That is why working smart and not hard is the best strategy to follow. So what is working smart exactly? Here, you need to prioritize tasks that you know can assist you in achieving your goals.

Boost Productivity of Startup with Social Media
Various Social Media Platforms Help You Boost Startup Productivity

With this strategy, you may have to scratch unnecessary meetings off of your list. Whenever conducting a meeting, make sure the agenda is clearly outlined. You have to set time limits for yourself and be disciplined when following your schedules.

4. Provide A Remote Environment For Your Team 

If you want to try another tip on how to boost the productivity of your startup, you should try providing your team with a remote environment. Giving them the chance to work remotely allows them to be more flexible. A software solution can streamline your operations, but a remote setup will boost collaboration by allowing remote access to their workspace. Plus, with this method, the team members do not have to commute either.

Apart from that, when you allow them to work from home, it minimizes social distractions like gossiping among coworkers and unnecessary phone calls. But that is not all. You can also save more office resources, such as electricity, workspace, and parking area, by creating a remote environment for your team.

5. Create A Positive Work Culture 

Another important tip on how to boost the productivity of startups is by encouraging a positive work environment. Understand that if your team is unhappy, they will fail to do their best at work. They may exert minimal effort or not be up to date with the tasks. When their productivity decreases, it affects your business, causing it to fail eventually.

How to Create Positive Work Culture
How to Create Positive Work Culture

On the other hand, if your employees are satisfied with their jobs, they will work enthusiastically and do their best. Happier team members are more likely to excel at their roles, which can help uplift and maintain the positivity of the entire workplace. So you have to create a positive work culture if you want to boost the productivity of your business. Now, how can you do that? What steps can you take to create a healthy work setting? We described some valuable tips you can use to build a positive work culture. Take a look.

Choose and appoint the right people to the job roles. Make sure to consider their qualifications, skills, and experience when adding them as team members. Organize events and activities that promote teamwork from time to time. Not only would it give them time to relax, but it would also bring the team closer as well. Consider the following factors, too:

  • Celebrate milestones of business progress with your team. 
  • Give recognition and appreciation to your team members. 
  • Set some policies in place against harassment and mobbing. Your employees should feel comfortable at all times. 

Encourage your team to speak honestly. Hear their honest feedback on issues they notice and ideas on how to improve the startup. It will not only make them feel they’re indeed a part of the team but also help when making changes for the better.

6. Train Your Team Members 

Another tip on how to boost the productivity of a startup is to help your employees reach their fullest potential. Of course, it is important to hire the best for your team. However, even the best of the best can improve with new skills and be up to date with knowledge. If you help them develop their skills further, they can improve, and, in turn, your company will grow. You can make this happen by providing your team with adequate training depending on the field you operate in.

Some may benefit from improving hard and technical skills (such as programming, analytical skills, utilizing and working with software, etc.). On the other hand, you can also focus on developing their soft skills (such as listening skills, effective communication, customer service, etc.), which are essential for team members to grow.

You can help your employees understand how to manage time and resources better and how to express opinions and thoughts in ways that don’t negatively affect coworkers. It will build better work performance, team morale, and overall productivity.

7. Review the Plans for the Work Ahead and Outcomes Often 

You cannot undermine the value of time. As a startup business owner, you cannot take time for granted. Every day should contribute to attaining your goals. While working towards your goals, you have to be mindful of tasks you have completed and tasks that are yet to be completed. Evaluate your tasks often. This will help you stay focused on the priorities you have set for the business. We suggest making a road map of your achievements or making an achievement list.

Business Achievement Milestones
Setting Business Milestones Helps You Assess Your Success 

Tick off the ones you have completed and focus on the next task while moving forward. Always evaluate the outcomes again and again and discuss them with your team.

Wrapping Up

There you go! We hope you found this post helpful in understanding how to boost the productivity of startups. Remember that your startup team’s performance depends on various factors, apart from the employees’ work experience and skills. That is why you have to try out these tips and improve the overall productivity of your business.

Always work smart, keep track of your tasks, and focus on your goals. Also, be sure to provide your employees with the necessary training to develop their skills. If you implement these tips, we are certain that you will be able to maximize the productivity of your startup business.

How to Invest in NFTs

 How to Invest in NFT Complete Guide for Beginners

How to invest in NFTs? Non-fungible tokens, a.k.a. NFTs, can be defined as unique cryptographic assets that could represent either digital or other forms of assets. Basically, NFTs digitally symbolize ownership. The most well-known examples are avatars and collectibles. However, non-fungible tokens can symbolize ownership of almost anything.

Do you want to know how to purchase NFTs? Or maybe any potential risks of investing in them? Most of all, do you wonder if NFTs are the right call for you? And if it is, then how do you get started? You can find answers to all these questions and more if you scroll through this post. 

Everything You Need to Know Before You Invest in NFTs

First of all, we have to establish the following fact. Just because you are investing in NFTs does not mean you have earned a one-way ticket to being rich. Sure, some lucky NFT investors have experienced unimaginably good returns. But, you have to know that it is not the case for everyone. Everyone’s experience is different. There’s no guarantee that your specific digital asset will make you money. It may or may not happen or keep its value. Before you sign up, you have to understand that there is a chance that NFT could drastically drop out its original value. 

Remember that you have to be knowledgeable about cryptocurrencies and computers to invest in NFTs. At least some basic understanding is essential to managing your digital assets well. Otherwise, you are at risk of losing access to NFTs.

Cryptocurrency Defined
A Definitive Explanation of Cryptocurrency

How to Invest in NFTs: step-by-step process

Step 1: Create a compatible cryptocurrency wallet

Let’s kickstart with getting a cryptocurrency wallet. If you already have one, you can simply skip this step. If you don’t, you have to create a wallet, as it holds the cryptocurrency that you require to buy the NFT. Also, remember that not all digital wallets sync well with every cryptocurrency. So make sure you have a digital wallet that is compatible with the cryptocurrency needed to buy the NFT you chose.

How to Invest in NFTs - Choosing the Crypto Wallet
How to Invest in NFTs – Choosing the Crypto Wallet

Some of the biggest NFT marketplaces use ETH, a.k.a. Ethereum’s cryptocurrency. Considering that, it would be best to establish a wallet compatible with Ether. Creating a digital wallet is pretty simple. All you need is a computer or a phone, and you can simply create a digital wallet for free. Coinbase Wallet, MetaMask, and Ledger are wallets with support for NFTs.

Step 2: Select the NFT that you want to purchase

The second step is a fun step, which is shopping for the NFT that you wish to purchase. You will come across collections or sets of creative and unique NFTs. Take your time exploring the marketplace. Choose the NFT wisely to start off your collection. 

We can recommend some of the major NFT marketplaces to shop at. They include Rarible, OpenSea, or Axie Marketplace. Note that most NFT marketplaces offer NFTs only with cryptocurrency. Therefore, make sure to take note of the cryptocurrency that you need to purchase your non-fungible token.

Step 3: Pay for your digital wallet

Next, you can fund your digital wallet with fiat money to buy the cryptocurrency that you need for the NFT. For example, you can use US dollars here. As we mentioned earlier, the biggest NFT marketplaces use Ethereum the most. However, maybe the specific NFT that you chose is only offered in a different digital currency than Ethereum. 

Remember that most of the time, the allowed currency for an NFT purchase is the cryptocurrency corresponding to the blockchain of the NFT. For example, if the blockchain of NFT is Ethereum, then the allowed cryptocurrency can most probably be Ether.

Step 4: Connect your wallet to a reputable NFT marketplace

At this point, your digital wallet is created and funded. So, you are ready to connect your crypto wallet to the digital marketplace listing the NFT. When you connect it, you will be able to see your wallet’s cryptocurrency balance that is available for buying NFTs.

Step 5: Own an NFT

Now you are ready to purchase NFTs. All you have to do is click the “buy” button. You will notice that NFTs can have a fixed price. Or else, sometimes you may have to bid for it against the highest bidder to purchase it.

How to Buy NFTs
The Procedure for Buying NFTs

Suppose you chose ETH for the transaction. Then, you will need to make a “gas” payment to the Ethereum network for the transaction to process. Usually, this fee can vary according to the network congestion on the Ethereum platform. Sometimes, it may rise to hundreds of U.S. dollars. To estimate the potential gas fee, you can get assistance from websites like Gas Station.

Step 6: Confirm the NFT transfer to your digital wallet

Now that you have clocked the “Buy” button, you officially own an NFT. Keep in mind that once you click “buy”, there is no going back. You cannot cancel or reverse blockchain transactions. The NFT is yours to keep until you sell it.

You will have to wait a while, until the transaction processes. Then you will see the NFT in your digital wallet. Note that the blockchain network that supports the specific NFT needs to confirm and verify the transfer of the NFT to your digital wallet for it to complete.

Once the transaction is complete, you will be able to see the NFT in your digital wallet.

Understand the Risks of Investing in NFTs

Note that, as a new asset class, NFTs should be considered risky. One of the major risks is that it is associated with investing in cryptocurrencies. Sure, cryptocurrency is not a new concept. It has been here for over a decade. On the other hand, digital money is still a relatively new investment option with high volatility. The cryptocurrency value could decrease with no prior warning. It could happen due to difficult market conditions or government decisions.  

Let us explain this to you with an example. Suppose your NFT is priced in Ethereum. Due to unfortunate circumstances, the value of Ethereum dropped by 50%. As a result, the value of your NFT could also drop by 50%, or sometimes even more. Basically, there is a chance of effectively losing your whole investment in NFTs or cryptocurrencies.

The Advantages and Disadvantages of Investing in NFTs


  • You get to be involved in cryptocurrency and blockchain technology.
  • The investments are anonymous and generally safe.


  • Depending on the investment, you are at risk of potentially large financial losses.
  • You are required to manage a digital wallet.
  • Gas Fees can be expensive.

Advantages explanation

You get to be involved in cryptocurrency and blockchain technology

When you invest in NFTs, you automatically gain exposure to a relatively new asset class and technology.

The investments are anonymous and generally safe

You have the chance to purchase NFTs securely and keep them safe in a securedigital wallet of your choice.

Disadvantages explanation

You are at risk of potentially large financial losses

Cryptocurrencies and NFTs are high-risk and volatile investments. You have the possibility of losing all the money you invested in an NFT.

You are required to manage a digital wallet

Maintaining a digital wallet requires you to have at least some IT skills and a basic understanding of the process. You need the knowledge to maintain the digital wallet to buy, store, and sell NFTs. If you are not up to learning these new skills, then you might find the process challenging.

Gas fees can be expensive

As we mentioned earlier, you may have to pay over a hundred dollars as Ethereum gas fees to procure an NFT. Keep in mind that this amount is in addition to the transaction value.

NFTs Pros and Cons
Pros and Cons of NFTs

How to Start Investing in NFTs: Beginner-friendly Steps

Are you a first-time investor and new to cryptocurrency and NFTs? If so, we listed some beginner-friendly steps for you to follow when investing.

Establish a Digital Asset Wallet

You require a standalone digital wallet to hold NFTs, preferably one that is compatible with Ethereum. You can choose your crypto wallet to be either a hardware device that you physically keep or software that you downloaded.

Hardware wallets are relatively safer, while software wallets are the most convenient option.

Choosing The Right NFTs To Buy

Explore NFT marketplaces online to find the NFT that you want to purchase. You can look through a variety of short videos, images, and creative artwork to find the right one. Usually, NFTs are available in sets or collections. The price of a single NFT could be free or thousands of dollars per unit. Make sure to choose one that you like and that also has a bigger chance of gaining value (this might not possibly be done by the investor himself and he might need consultancy.)

Complete Your First Ever Transaction

You first need to connect your digital wallet to the marketplace where the NFT is listed before you can officially own an NFT. It is required to open an account with the NFT exchange (which is the marketplace) before initiating the transaction.

You will find that most NFT marketplaces work like auction sites such as the auctions on eBay. You may have to wait a couple of minutes or a few hours for the NFT transaction to finalize. 

What to Know After You Invest in NFTs

You can choose to keep purchasing and selling NFTs back to back. This option is best if you want to make a short-term profit. On the other hand, you can choose to buy, store, and keep collecting NFTs for the long term.

You are allowed to make the call about your investment approach. It is entirely up to you. However, remember to keep a close eye on your NFTs. Also, remember that both selling and purchasing NFTs can cause a capital gain tax liability.

Make sure to keep track of your cryptocurrency and NFT capital gains. You will also have to record and report the gains on your tax return each year. NFT taxation can be confusing because they can be considered collectibles. As a result, you could be subjected to a larger capital gains tax rate of 28%.

Treinetic’s Final Words: Should You Invest in NFTs?

Now for the big question: Should You Invest in NFTs? Well, NFTs are undeniably a potentially profitable investment. But is it right for you? Suppose you are looking for an investment plan that is non-volatile and stable. Or maybe you are not technically inclined. In such cases, NFTs might not be able to serve you well.

If you wish to get into NFTs, you should be knowledgeable and comfortable with the process. Consider the risks and your skills to manage a digital wallet. Weigh the advantages and disadvantages carefully before deciding to invest in NFTs.

Do you want to make your own 3D NFTs but need some help from a pro? Get in touch with the 3D experts at Metafylabs, who are also experts in blockchain technologies related to digital arts.