5 tips to securing investment for your startup

 

Had a groundbreaking idea, but lacking the funds to get it off the ground? This is a struggle that so many entrepreneurs face on a daily basis. Steve Tucker, CEO of Bunting, faced similar struggles himself, but since then, Bunting has secured funding from some of the best investors in Silicon Valley. So here are his top tips for securing investment.

1. Know your numbers

We have all seen those toe curling episodes of Dragons Den. Amazing product, smashed the pitch, Dragon asks for financial details, and it all falls apart. Make sure you know your cash flow, gross profit, net profit and predicted growth. Slipping up at this hurdle is a sure fire way to lose the interest of your potential investor.

 

2. Be realistic with your figures

Entrepreneurs are passionate and determined to make their business a success. However, that doesn’t necessarily mean your company is worth as much as you think. Be sensible with your numbers, you may value your skills much higher than investors.

 

3. First impressions count

Studies show that typically, major decisions on one another are made within the first 7 seconds. Think about it, in less than 10 seconds, months of planning could go out of the window, so make sure your first impression is spot on. Don’t be late, think about your posture, make eye contact, be confident, consider your appearance. According to the Harvard Study of Communications, it takes a further 7 meetings to change that first impression. The chance of you getting 7 further meetings with your potential investor if the first didn’t go well? Slim to no chance!

 

4. Define your ideal investor

Research is key here. There is no sense in spending time pitching to investors for your clothing company, when their passion is IT. Know the investors you’re pitching to, know their background, their previous business ventures, what they’re currently working on. Do your homework, it will be worth it!

 

5. Don’t give away too much too soon

Whilst gaining investment for your startup to get it off the ground is exactly what you need, giving away too much equity too soon causes many startups to lose their vision and control. Investors have excellent negotiating skills, and they invest in companies to make their money back and more. Set yourself a limited of what you are prepared to give away and stick to it.

 

Bunting is a award winning retail optimisation tool. We build tools that ignite ideas and innovation, and inspire retailers to be dynamic, creative and bold. We offer a free months trial for all our customers!

By: Charlotte Halkyard 28th June 2018

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Website Personalisation Software

Bunting Software and the Great British Business Show

Bunting Software, The Great British Business Show and a very special guest!

 

As a champion of growing ecommerce businesses we’ve helped some well known online giants improve and grow into the finished article they are today. As we were once a new start up ourselves, we understand the pitfalls and rewards, especially in the ecommerce and software worlds. This December we aim to extend our helping hand even further.

Our pride and joy, the software that has helped so many ecommerce businesses excel, will be exhibited and demonstrated in all its glory at this years The Great British Business Show between 3rd and 4th December at Olympia in London. This event is aimed at helping people looking to start a business, grow an existing business or to take their business overseas, all things that the team at Bunting have experienced.

Not only will we be answering your ecommerce questions and queries but we’ll be offering live demos and some eye catching surroundings with the inclusion of a very special guest.

You can find us at stand 206

For more information on where to find us, give us a call on 0161 818 7848 or visit www.thebusinessshow.co.uk   

By: Wayne Berry 28th November 2015

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How being a victim of fraud was the inspiration for Bunting

IMG_0412I shouldn’t have been struggling to pay my bills. I had 10 years experience studying successful e-commerce websites, and in the development of online retail systems. Yet when my business of 6 years closed its doors due to a lack of work I found myself with little money, few opportunities, and was laden with worry.

But it was soon to get far worse.

To improve cashflow I set up a new business. With no trading history I did what most digital entrepreneurs do to kick start things; I advertised on Google Adwords. For the first few months business was great. Thanks to Google the little money I had went a long way – my advertising spend was low and sales were steady. But then everything changed.

Crippling attack

Almost overnight my cost per acquisition more than doubled. The number of clicks I received suddenly soared, yet the sales remained the same. I had unknowingly become a victim of click fraud.

Click fraud is the main threat to Google’s mighty revenue model. It happens when someone not remotely interested in buying your products or services clicks your ads, often simply to waste your money. In small numbers, invalid clicks are acceptable. In fact, they’re a natural part of the pay per click (PPC) landscape. However, when one individual or company – which normally tends to be a competitor – clicks your adshundreds or thousands of times, it can become a big, big problem.

But for those few months I was unaware of click fraud. I was confused and I was worried. What was happening? Why was my advertising spend suddenly so high? And what was I going to do about it? Then the answer began to emerge.

click-fraudStrange messages started arriving via the contact form on my website. These weren’t enquiries or spam. They mocking and foolish in their nature, but clearly written for my company. I dug further, setting up a basic IP address capture on my contact form, and quickly identified a pattern. These enquiries were coming from the same computer… and all arriving via expensive PPC ads.

I could have stopped my marketing campaign there. But I was intrigued; who was this person, and why was they trying to destroy my business? I decided to engage the anonymous attacker, writing a piece of software to silently track their movements across my site. At that time I didn’t set out to start a new entrepreneurial venture, but that is exactly what was happening.

A few months later the attacker’s identity was finally revealed – a rather immoral competitor. When I challenged them they confessed to clicking my ads (with a poor excuse that it was “market research”), and the attack finally ended. However the desire to help other companies avoid this same terrible situation had just begun.

I began working on a public release of the software I’d used so successfully against my attacker, streamlining it to easily plug into any website, and improving the features. Initially I worked on it in my spare room and in coffee shops; anything to keep costs down. After 6 months development it was finally released to the public and Bunting was born.

Ironic success

Even today I find it ironic that a malicious attack designed to cripple my business was largely responsible for a successful entrepreneurial venture that has now become Bunting.

We’ve since grown from click fraud prevention to helping growing web-based businesses thrive via the power of website personalisation. You will already no doubt have seen personalisation in action; every time you visit Amazon it recommends products to you. In fact, you’ve probably already let it successfully influence you into spending more money.

team (3)

Our aim now is to help visitors enjoy their online shopping experience, and for retailers using Bunting to experience a natural and consequential increase in their bottom-line sales.

But our roots are still in the fabric of who we are. We include Bunting’s click fraud prevention tools within our website personalisation software, and believe that everyone has a right to defend themselves against click fraud.

Opportunities Everywhere

However, all this experience highlights one important lesson that we can all learn from; There are viable business opportunities everywhere, no matter how hopeless your situation seems, nor how bad things get. Don’t give up when times get hard. Just take a step back and see what jumps out at you.

By: Stephen Tucker 25th June 2015

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