Why should startups perform a marketing strategy “sanity check” before raising funds?
From our experience, we have identified several reasons why startups better get a “sanity check” for their business and marketing strategy before they raise funds:
– A marketing strategy sanity check can help a startup to identify any gaps or weaknesses in their plan before seeking funding. This allows the startup to address any issues and improve their chances of success.
– Such a check helps to demonstrate to investors that the startup has a clear understanding of its target market and a plan to reach and engage with potential customers. This shows whether there is a “fit” for the product or service, fulfilling a need of potential customers and adding value.
– It helps to show investors that the startup has a clear understanding of the industry and competitive landscape. It also shows that the startup has a plan how to differentiate itself in the market and stand out from competitors.
– A well-defined marketing strategy can also help startups to better allocate their limited resources and make data-driven decisions. By regularly tracking and analyzing their marketing efforts, startups can adjust their strategy as needed to achieve better results.
– Having a marketing strategy in place before raising funds shows investors that the startup is well-prepared and has a clear path to growth and revenue generation. This can increase investor confidence and make it more likely that they will invest in the startup.
Got questions or thoughts about this? We’re looking forward to hearing from you.