I often tell clients to work on defining the archetype or persona of their customers and make them as rich as possible, so they really come alive for everyone in the business. For start-ups, it’s a key part of getting to the Product-Market fit that they are seeking. But I’m not aware of anyone developing archetypes for their investors. And I am wondering, why not?
Investors are customers as well, aren’t they? You want them to buy into your vision, your team, your business. You sort-of get this, that’s why you work at your pitch, do your business plans and demo days. And when you talk to them, you quickly realise that some investors will fit better than others, depending on their specialisation in terms of markets and size and type of investment.
But it’s not just about the money, is it? You really want ‘smart money’, investors who can bring experience, contacts and support to help grow your business.
What’s more, once you have investors you have a whole new set of relationships to deal with. These guys have a lot of say over how you go about things, what your strategy and objectives are. Get these relationships wrong and you could lose the business, because they take it, or the money, away. Think of them like a new set of parents. Wouldn’t you like to take the time to choose the right ones?
So I suggest that you start developing archetypes for your investors. Then you will be able to work out where best to look for them, and quickly sift through the ones that you meet. And isn’t it remarkable how, once you have figured out precisely the ideal type of person, they appear before you?
All in all, it will save you a lot of time. And possibly a whole world of pain too.