World Business and Economic Analysis
World Business and Economic Analysis
As someone who has successfully created a business from the ground up, I know how important it is to save money throughout the process. More often than not, any new project will cost more -- and take longer -- than anticipated. As someone who frequently reviews startup pitches, I highly recommend having a well-thought-out plan in place to reduce the time, effort, cost and energy necessary to be successful. Searching for investors will require a substantial investment of your own, but if you wisely and mindfully use your time, money and energy during your pursuit, you will have a higher likelihood of reaching your goals.
Here are my top suggestions for securing the interest of investors, and eventually raising funds:
Create a realistic budget to gain traction. Investors consider the best companies to be those with proven traction and customer discovery. You will need a budget to get your first customers and make sure that a business-market match exists. Once you are able to point to reaching certain milestones or successes, you can move onto pitching to investors. Many CEOs dedicate the majority of their energy to pitching investors for a period of six months or more. As a result, you need to understand how much this will cost in terms of travel, expenses and additional fees. Figure out your reliable revenue and expenses for the year, then see where you have extra room in your expense category to add funds for marketing.
Get to know potential investors. Save yourself time and money by conducting thorough research on potential investors. What are your potential investors like as individuals? Have they invested in businesses like yours in the past? Do the tenets of your business mesh with theirs? Get to know them well enough that you can interact with them on a personal -- and even spiritual -- level. Find investors with interests and beliefs that mirror yours, and your chance of success will dramatically increase.
Use social media. A strong, positive social media presence can entice investors. Connect with investors through LinkedIn and Twitter and let your personality shine. When you pitch to them, they’ll remember you as the social media star who freely shared inspiration and positivity. Social media is also an excellent way to get to know the investors. Make a note of topics they post about frequently, then use them during your pitch to show that your values and ideas intertwine with theirs.
Pitch at your level. If you’re just starting out, start small in your search for investors. As a newcomer in the business arena, increase your odds of success by choosing small, lesser-known investors who frequently support your type of business. If, on the other hand, your business is well established and you have a million-dollar idea to expand your brand, then go ahead and pitch to the bigger investors after you conduct research on them.
Practice your pitch. I recommend crafting an elevator pitch and taking every opportunity to practice it. An elevator pitch is a quick overview of your business that you can give quickly. Practice giving the pitch to strangers, advisers, your grandmother and even your dog. Then, when you stand in front of a potential investor, you can effortlessly speak about your business, the problems it solves, and what you need to make it better. If you are successful with your elevator pitch and the investor has both the interest and capacity to move forward, they will consider providing you with an opportunity to offer a full business pitch for your idea.
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Keep on keeping on. Above all else, keep trying and keep working. If your first pitch doesn't yield results, try again. Focus on the positive aspects of your pitch and learn from the negatives. What did the investors like most? What didn’t they like about it? Take notes, learn, and move on. Meanwhile, continue to operate your business as you search for funds. Investors are more likely to invest in a business that is up and running, even on a small level, than in one that is only in the idea stage. I recently interviewed an entrepreneur who pitched to over 725 investors prior to obtaining the funding he needed for his $1.5M seed round. Even though he heard a lot of "no"s, he successfully raised the capital that he needed and was able to exit that company a few years later for a huge profit.
Stay positive, and most importantly, believe in yourself and your business. Soon, your hard work and positivity will manifest everything you need to make your business flourish.
Before seeking equity finance from an investor, make sure you know your business inside out. Here are some helpful tips to get you started
You need more than just a great business idea to secure equity finance.
To secure the interest of potential investors you will need to provide clear evidence of a solid business plan, with a compelling pitch and risk analysis.
A potential investor will want to know your proposed business structure. Investors will need evidence that you have a solid company structure in place, including a well-defined commercial remit and management with the necessary track record.
Investors will require a full set of financial records and detailed financial projections.
You will need to show that you understand the market and your place in it.
Consider where your business has potential to grow, research your competitors and look at any uncontested markets that could be profitable.
Your investor relationship matters because they’re not just investing in your company, they’re investing in the management team behind the company. Ultimately, they’re investing in you.
The Abraaj Group (“Abraaj” or the “Group”), a leading investor operating in growth markets, announced today it has entered into a definitive agreement to purchase, through its Funds, a significant minority stake in Société Nationale des Télécommunications (“Tunisie Telecom” or “the “Company”), Tunisia’s largest telecom operator. The stake will be acquired from Emirates International Telecommunications LLC. Upon completion, this will represent the largest ever private equity investment in Tunisia demonstrating Abraaj’s faith in the Company and in the Tunisian economy. Tunisie Telecom is the incumbent integrated telecom services operator in Tunisia and serves over five million customers. The Company has state-of-the-art infrastructure, operating a national structure of fixed networks and fiber which enables connectivity to Europe, Africa and Asia, as well as providing the most extensive 3G and 4G mobile coverage in the country. The Company holds a strong competitive position, as it is the leading player in fixed voice and fixed broadband in the Tunisian market.
Tunisie Telecom is one of the most dynamic operators in the region through several acquisitions that have helped grow the Company. Tunisie Telecom holds assets in Malta, Cyprus and Mauritania. In Malta, the Company owns the leading incumbent operator Go Malta, which offers multi-play services such as landline, mobile and broadband. Through Go Malta, Tunisie Telecom is also the leading cable operator in Cyprus.
Tunisia enjoys a 132% mobile penetration rate and is witnessing growing demand for mobile data and fixed broadband. This was supported by the launch of three 4G licenses by the Tunisian Government in 2016 which spurred the growth of data consumption. According to the Tunisian regulatory agency, mobile data consumption increased by 30% in August 2017 relative to the previous year. Fixed ADSL subscriptions have also increased 9% over the same period. The Tunisian telecommunication market is expected to keep growing, as data usage continues to expand driven by increased smartphone penetration, over the top applications (OTT), e-commerce, the internet of things, Internet Protocol Television or 4k Television and the adoption of other technologies.
Abraaj, in partnership with the management team of Tunisie Telecom and the Government of Tunisia, has developed a robust value creation strategy to grow the Company as a pan-Mediterranean telecom leader. By leveraging Tunisie Telecom’s talent and network leadership, the Group will assist Tunisie Telecom in enhancing its customer service experience and the development of 4G and LTE technologies to capture growing market demand.
Ahmed Badreldin, Partner and Head of Middle East & North Africa at The Abraaj Group, said: “This is a landmark transaction for Abraaj, as it marks our first investment into the telecommunications sector, as well as our 10th investment in Tunisia. The telecommunications industry in Tunisia is experiencing exponential growth driven by favorable government policies and a rapidly evolving economy. With these positive factors at play, we see immense potential for the sector to advance further. In Tunisie Telecom, we are partnering with a market leader in this dynamic sector. Driven by strong consumer demand, Tunisie Telecom is well positioned to capture greater market share and cement its leading position in Tunisia and beyond.”
Mohamed Anouar Maarouf, Minister of Information Technologies and Digital Economy, said: “The enabling environment established by the Government has helped the Tunisian telecom market go from strength to strength in recent years. We believe that the state-of-the-art infrastructure we have put in place, coupled with favorable dynamics, will ensure this trend is set to continue. It is at this critical juncture in the industry’s development that we are delighted to welcome Abraaj, a committed investor in our market that has helped grow many Tunisian businesses, as a partner in one of our most prominent assets. We look forward to working with Abraaj as we develop our strategy to position Tunisie Telecom as a pan-Mediterranean telecom leader.”
Abraaj has helped pioneer the development of the private equity industry in North Africa and has been investing in the region since 2006. The Group is one of the leading private investors in Tunisia with 10 investments in the country, including the North Africa Hospital Holdings Group, a healthcare platform focused on enhancing accessibility of quality healthcare, Lilas, a leading producer of disposable household and personal care products, and L’Accumulateur ASSAD, a leading battery manufacturer.
The transaction will close once customary closing conditions including government approvals are obtained.
Freshfields Bruckhaus Deringer LLP and Meziou, Knani & Khlif acted as legal advisors, while Arab Banking Corporation B.S.C. (Bank ABC) acted as sole underwriter and arranger of the transaction.
