How to translate your business idea into a viable business case and get it funded!
Having completed the research how your idea can resolve a particular problem as well obtained evidence from testing and prototyping for a solution-fit, leaves the founder(s) behind a business idea with the task to distill all these considerations in a viable business model for a startup.
Drafting such a viable business model is material to any venture success whether you launch your own independent business practice or whether you go for bigger ambitions fuelled by venture capital.
The business model is the starting point to the commercial perspective of a business idea and must be drafted in careful consideration of many dimensions. It’s ultimately also the base module for drafting your startup’s investment case if you require external funding.
Founder(s) should make use of best practice and be prepared for investors
Nowadays, there are many useful tools out there to start off the drafting process of a business model. In particular, the well-known Business Model Canvas by Alex Osterwalder has been established as a very useful guide to start drafting a viable and holistic business model.
Looking at the most prevalent reasons why startups fail these days, it becomes clear that the drafting of a viable business model is essential for the prevention of such failures. This holds in particular true for the identification of a market need, having the right team members / resources, go to market or applying suitable pricing models to the target customers.
If your ambition is about raising funds from external institutional parties such as venture capitalists, family offices or other professional investors, it is highly recommended to draft a respective investment documentation, i.e. the investment case. This is required to properly outline the commercial proposition and return projections to the potential investors since for example not every single business opportunity is well-fitting the return expectations of venture capital investors (“venture capital readiness”: if you can prove that your business opportunity could bring the investors a return ≥ 10x their initial investment).
Central element to every investment case is the investment teaser, a presentation deck detailing your business opportunity in terms of problem-fit, solution design (features, USP, value proposition), competitive landscape, business and revenue model, distribution channels, go-to-market, partnerships, corporate roadmap as well as the use of funding proceeds. Such investment teaser is complemented by respective financial considerations in the form of a financial model as well as a valuation model. Having such documents in place particularly shows your professionalism and also speeds-up in an ideal case the negotiation flow with potential investors.
How KSquared can support you
We at KSquared are your companions for your early-stage startup from the very beginning and help you to validate and draft a viable business model through a hands-on and pragmatic workshop experience. We can bring in our experience from working across various industries and technologies as well as being entrepreneurs ourselves. Our expertise is particularly based on financial management, tax & regulatory matters, business operations, innovation management as well as general business strategy.
Further on, if you are interested in obtaining external institutional funding for your business opportunity, we provide value- and success-based investor readiness and fundraising support for your pre- or seed-stage startup. Thereby, we guide you through the drafting of the necessary investor documentation (investment teaser, financial model, valuation model), the identification of potential investors and also provide you with due diligence support.
We have recently started working with companies in various industries and technologies ranging from hardware, blockchain / DLT, 3D printing as well as B2B marketplaces and SaaS companies.
If our support offering sounds appealing to you, do not hesitate to get in touch with us today for a first free exchange over a cup of coffee or call. We want to be your long-term partner and help you driving your business towards your vision. Contact: kevin@ksquared.ch
