2025-05-08 13:01:22
Unlock the full potential of your startup’s pitch with this straightforward guide that distills expert advice on articulating a unique value proposition. Discover strategies to stand out in the competitive startup landscape and learn how to effectively communicate the unique benefits of your product or service. This article provides actionable insights to refine your pitch deck, ensuring it resonates with investors and paves the way for your startup’s success.
When we were putting together our pitch deck, we focused heavily on showcasing what makes our AI-powered assessment platform different and how it solves real-world problems for businesses. Our unique value proposition (UVP) was at the core of every slide. First, we made sure to clearly define the pain points in the hiring process—inefficiencies, bias, and time-consuming manual tasks. Then, we positioned Testlify as the solution that streamlines hiring while maintaining fairness and accuracy, something many hiring tools lacked.
We also focused on how our data-driven insights help HR teams make smarter, more informed decisions—offering not just a tool, but a competitive advantage for businesses. To make the pitch more compelling, we didn’t just talk about the features of the product; we showed real-world examples and data that highlighted the tangible impact we were making.
For other entrepreneurs looking to craft a compelling pitch deck, I’d say keep it simple, but impactful. Focus on your UVP, back it up with data, and always show the problem you’re solving in a relatable way. Make sure your storytelling is strong, and be clear about why your solution is needed in the market. Lastly, don’t be afraid to let your passion for what you’re building shine through—it helps investors connect with your vision.
Abhishek Shah, Founder, Testlify
In developing our pitch deck, I focused on showcasing how our AI-driven platform directly addresses the complexities of M&A integration, a process I managed extensively at Adobe. Highlighting our unique offering, like the AI Assistant’s ability to provide real-time, context-aware guidance tailored to M&A tasks, was crucial in differentiating us from competitors. This feature alone has empowered integration teams to reduce task completion time by 30%, demonstrating immediate value and efficiency gains.
Incorporating specific case studies, I illustrated how our customizable templates helped a mid-sized company streamline its post-merger process, achieving goals 25% faster. By emphasizing these tangible outcomes, potential investors could clearly see the transformative impact our technology has on achieving successful mergers. For entrepreneurs, back your value proposition with concrete data and real-world success stories to create a compelling narrative in your pitch deck.
Ernie Lopez, Founder & CEO, MergerAI
We structured our pitch deck to clearly define the problem, differentiate our solution, and validate our approach with traction. We opened with data on job seekers’ challenges—fragmented tools, inefficiencies, and lack of guidance—then positioned our company as the first AI-powered job application management platform in the US, offering an end-to-end solution. Instead of listing features, we focused on our key differentiator: a one-click AI-driven system that actively increases job seekers’ success rates, contrasting it with traditional passive improvement tools.
To make our value proposition compelling, we backed our claims with market data and user engagement metrics, demonstrating demand and growth potential. We highlighted how our platform reduces job search friction, provides real-time resume optimization, and increases application effectiveness. Instead of telling investors why our product is great, we showed why now is the right time for AI-driven job search solutions and how our approach scales.
For founders crafting their pitch deck, clarity and impact are key. Start with the problem and make it specific. Define your differentiation in a single sentence. Use data to support every claim and emphasize why your market timing matters. A strong pitch deck isn’t about listing what you do—it’s about proving why your startup is necessary and inevitable.
Mohammad Haqqani, Founder, Seekario
When crafting our pitch deck, I made our startup’s unique value proposition the centerpiece by focusing on our groundbreaking blend of sustainability and technology. I began with a narrative that clearly outlined the problem we were addressing, then introduced our solution as a transformative breakthrough. I shared a personal anecdote about the moment I realized our idea’s potential at a sustainability summit—it was a turning point that fueled my commitment to our vision.
I ensured every slide reinforced our core benefits, using vivid imagery and concise language to showcase how our approach dramatically improved customer engagement and even doubled our operational efficiency in early trials. My advice for other entrepreneurs is to keep your pitch authentic and focused. Avoid clutter by honing in on what truly sets you apart. A clear, story-driven deck not only captures attention but also builds trust with investors. Embrace your journey, let your passion shine through, and ensure every element of your presentation underscores the unique value your startup brings to the market.
Gauri Manglik, CEO and Co-Founder, Instrumentl
When we were crafting our pitch deck, I knew it had to go beyond just listing features and benefits. The key was to show why we were different and why people would care. We started with our story—how we saw a gap in the wedding gift market and why our approach was a game changer. Instead of just talking about the product, we showcased the emotional connection our customers have with the gifts we offer. I made sure to highlight how we weren’t just selling gifts, but helping couples create lasting memories. This immediately set us apart from other e-commerce businesses that were more focused on just transactions.
One piece of advice for entrepreneurs is to keep it clear and concise. People don’t have time to sift through pages of text. Each slide should be punchy and focused. Show the problem you’re solving, how you’re solving it, and why you’re the best at it. Include real-world data when possible. For us, we showed metrics like how our customer retention was 30% higher than the industry average. Keep it personal, keep it human, and don’t be afraid to show your passion. When people see how invested you are, it makes them want to be a part of the journey too.
Chris Bajda, E-commerce Entrepreneur & Managing Partner, GroomsDay
I carved our value proposition with one single slide that showcased our integrated production chain. I used a simple graph to display our 40% faster turnaround versus competitors and highlighted our 25% lower cost by using our own factory and logistics. I kept the slide clean with just three key numbers and eliminated any fluff to let the data speak.
Entrepreneurs should focus on one defining metric that sets them apart. Real, tangible figures win trust and eliminate ambiguity. A clear comparison with industry benchmarks makes the value undeniable. Minimalist design and data-driven visuals demand attention and build credibility. Keeping the message crisp ensures the pitch leaves a lasting impact.
That is the secret. The proof is in the figures.
Rick Newman, CEO and Founder, UCON Exhibitions
I focused on clarity, storytelling, and data to make my pitch deck compelling. Instead of overwhelming investors with jargon, I made my startup’s unique value crystal clear in one sentence—how we solve a major pain point better than anyone else.
One key slide I emphasized was the problem/solution fit, showing real-world examples of businesses struggling with organic traffic and how our AI-driven marketing tools provided measurable growth. Data was critical—I included key metrics, traction, and case studies to back up our claims.
My advice? Make every slide matter. Investors don’t want fluff—hook them with a strong narrative, show market potential, and prove traction with numbers. Keep it simple, but powerful.
Anatolii Ulitovskyi, Founder, Unmiss
When we built our pitch deck, we focused on one thing: clarity. Investors see so many pitches that if your value proposition isn’t instantly clear, you’ve already lost them. We made sure to highlight the problem in a way that felt real and urgent, then showed exactly how our solution made life easier for healthcare professionals. Instead of just talking about features, we focused on impact. How much time do we save clinicians? How does that translate into better patient care? Why is this a must-have rather than a nice-to-have?
One of the most compelling parts of our deck was using real user stories and data to back up our claims. It’s one thing to say, “Our AI reduces admin work.” It’s another to show a provider who used to spend three hours a day on documentation now getting that time back for patient care. That kind of proof makes your pitch stick.
For other entrepreneurs, my advice is simple. Get to the point fast. Make sure your problem and solution are crystal clear. Use real-world proof to show your impact. And don’t overload your deck with too much information. Less is more when it comes to making your message land.
Jamie Frew, CEO, Carepatron
For anyone building a pitch deck, I’d recommend leading with what makes you different, but don’t just say it, prove it. Whether it’s through data, market trends, or customer insights, grounding your message in facts makes it more compelling. Our core differentiator is transparency, so we made that the focal point of our pitch deck, and we backed it up with industry data showing why transparency is a crucial factor for customers in our space.
One of the most effective elements was showcasing how lack of transparency has historically been a pain point in our industry and how we’re solving that gap. Framing it this way made our value proposition instantly relatable. This helped investors understand not just what we do but why it matters. We also structured our deck to reflect this principle: clear, concise, and free from unnecessary fluff.
Mads Viborg Jørgensen, CEO and Co-Founder, PatentRenewal.com
Our goal was to make it crystal clear why we’re different: a social-first gaming browser built for the new generation of gamers. To highlight this in our pitch deck, we focused on:
Advice for Other Entrepreneurs Crafting a Pitch Deck:
When pitching, our focus was on how gaming is evolving and why a browser tailored for gamers is the next big thing. The key is to make your startup’s mission unforgettable!
David Diaz, Co-Founder and Chief Commercial Officer, Ray Browser
I built my company from the ground up, bootstrapped it while in college, and later secured $1.2M in funding. Our pitch deck played a huge role in that. I’ve pitched to top investors, and I know what grabs attention fast.
I focused on one thing: why my business had to exist. Too many founders drown investors in features. I made it personal. New moms waste 1,400 hours a year researching baby products. We solve that. One line, instant problem-solution clarity. When investors feel the pain point, they pay attention. The key is making them care.
Then I showed proof. No fluff, just hard numbers. Investors don’t just want a cool idea. They want traction. I highlighted our 245% growth, 14% monthly revenue jumps, and key partnerships with Fisher-Price and Mattel. Investors saw momentum and upside. A strong idea with no traction is just a concept. A growing business is investable.
I kept it clean. No walls of text. No cluttered slides. Investors make decisions fast, so I made it easy for them. Every slide had one clear message. The business model? Simple. The market size? Huge. The vision? Unshakable. The goal isn’t to answer every question, it’s to get to the next meeting.
Zarina Bahadur, CEO and Founder, 123 Baby Box
A powerful pitch is about connection. In crafting my pitch for Yogilachi, I didn’t just present a fitness program—I told the story of how holistic movement, mindset, and energy alignment transform lives. My advice? Focus on the experience you create for your customers. Investors want to see your unique edge, but they also need to feel the demand for your solution. Use clear, high-impact messaging, compelling visuals, and proof of traction. And remember, confidence is key—when you fully believe in your vision, others will too.
Stephana Johnson, Founder, Powerhouse Leaders
Our pitch deck was built around showcasing our AI-improved solar technology. By integrating advanced artificial intelligence, we’ve transformed standard solar panels into dynamic energy management systems, setting ourselves apart from the traditional solar market. This innovative approach allowed us to present our technology as not just sustainable but smart, focusing on how it empowers homeowners through increased energy efficiency and customization.
For instance, we highlighted a case where our systems reduced energy costs by up to 40% for a local community in Wellington. This example provided tangible evidence of our technology’s impact, framing our AI as a tool that learns and adapts to consumer habits. Investors appreciated the clarity and real-world applications, which turned an abstract AI concept into a concrete benefit.
I suggest entrepreneurs pinpoint how their technology or service offers a significant leap over current industry norms. Use specific success stories that demonstrate value—like savings or efficiency gains—directly to potential clients or end users. Tailoring the pitch with clear, relatable data ensures your value proposition is both compelling and memorable.
Spencer Gordon, CEO & President, NextEnergy.ai
When crafting my pitch deck, I focused on highlighting our unique position as a HIPAA-compliant, all-in-one platform custom specifically for virtual mental health support groups. I backed up this value proposition with data-driven evidence, demonstrating that using our platform led to a 30% improvement in health outcomes for customers. This showcased real-world impact and resonated with investors looking for tangible results in health tech.
A critical component was emphasizing how our platform addresses provider burnout by streamlining administrative tasks and offering secure, private virtual group sessions. I shared a case study of a behavioral health hospital in Los Angeles that saw a 70% improvement in participant emotional stability and a 90% attendance rate due to these features. This not only underlined our solution’s effectiveness but also painted a vivid picture of how we solve concrete pain points in the mental health space.
In my pitch deck, storytelling was key. I shared my personal journey of dealing with anxiety and the gap I found in mental health support. This narrative helped humanize the pitch, connecting our mission to my personal drive, adding credibility and emotional depth to the presentation. When developing your deck, intertwine your personal experiences to create a compelling and relatable narrative that speaks to investors’ values and objectives.
Tamar Blue, Chief Executive Officer, MentalHappy
Sometimes, complex technology or services can be difficult to explain simply. In my pitch deck, I used visual metaphors and infographics to make these ideas more digestible for the audience. These visuals allowed investors to grasp the concept instantly without getting bogged down in technical jargon.
The best advice I can give to other entrepreneurs is to use visuals to simplify your message and make it more relatable. A well-crafted diagram or analogy can speak volumes, making your pitch more memorable and accessible. Visuals help break down barriers and let your audience see the potential of your technology right away. They can be the key to making your idea click with investors and partners.
Samuel Charmetant, Founder, ArtMajeur by YourArt
We began with a very strong market opportunity, supported by powerful data. Using a graphics-heavy presentation, we illustrated, among other things, that the total addressable market (TAM) for premium dietary supplements was expected to grow to $230 billion by 2027, and zoomed in on our serviceable obtainable market (SOM) from there, specifically targeting health-conscious consumers who were willing to pay for clean, science-backed products.
We also highlighted current market trends—the increased demand for immune support and gut health—which were a great fit for our product line. We illustrated not only the number of opportunities but the urgency of the need for our solution by basing our pitch around data and trends. This methodology allowed investors to visualize scalability and revenue potential.
Showing our traction and milestones was another very important aspect of our pitch deck. Right away, we highlighted essential accomplishments, like a 300 percent increase in revenue, year-over-year, in year one and partnerships with respected influencers in the wellness space. We also shared our roadmap and the next phases through product launches and entering new markets. For example, we announced our intention to implement a subscription model, expected to drive a 25% increase in revenue.
My advice for fellow entrepreneurs is to look for what differentiates your startup and make sure to have proven results and a vision going forward. Investors want evidence that you’ve gained traction and a plan for how you’re going to keep the momentum going. An effective pitch deck is more than a flashy design—it’s the story of a market opportunity, evidenced success, and a path to growth.
James Wilkinson, CEO, Balance One Supplements
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I have three things that seem to be generally compelling to our investors when they see pitch decks.
First, Ease of understanding.
The best product does not help you if the people reading your pitch have no clue what exactly you mean, or do, or who for. Long-stringed, buzzword-layered explanations are particularly bad. Keep it concise, maybe even add some graphics to illustrate your point if you can. My rule of thumb: If my mom understands it, I’m good to go.
Second, defensibility.
Great stuff you innovate, but how do you defend it against other competitors? What is your unfair advantage? And how exactly do you differentiate that claim from this competitor who already does similar? For those who really know the market vertical you play in, seeing a defensible value prop will be like a dopamine shot.
Third, storytelling.
People understand stories. If you can have your whole pitch deck form one coherent narrative, that is logical to follow with a flow from one to the next, you can force “aha” effects in your audience, without needing to tell them what the “aha” is. This is especially true for pitching competitions, where audiences probably already have a sensory information overload and only limited time to digest the data presented.
If you use these three as a rough guide, the whole rest of the deck falls pretty much in place.
Make sure to show it to some trusted people to test and reiterate a few times.
Andreas Rüegger, Lead Business Development, zevvy
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2025-05-06 13:03:43
Starting a company means dealing with legal requirements. One of the first things you’ll need to figure out is whether your state requires a license, a permit or both. Many new business owners don’t know the difference between them, but it’s essential to understand the nuances and what your state requires.
The key difference between a permit and a business license is that a license allows you to open and legally operate your company, while a permit ensures that specific aspects of your operation comply with regulations. A business license is usually required for all companies, whereas permits are only necessary for certain industries or operations.
For example, if you operate a retail store, you may only need a business license. However, restaurant owners will also need a health permit, a fire safety permit and a liquor license to serve alcohol. The combination of licenses and permits you need depends on the type and location of your business.
Business Licenses
A business license is a general authorization from the state, city or county that allows you to operate legally. It doesn’t regulate how you run your company. It simply grants permission to exist as a legal entity. Whether they’re brick-and-mortar locations, home-based operations or online stores, most companies need a business license.
Business licenses are typically issued at the state or local level, often require renewal and come with fees. The main purpose of the license is to keep track of companies for tax and record-keeping purposes.
Business Permits
A business permit is more specific. It regulates certain aspects of your operations and ensures compliance with laws related to health, safety, zoning and the environment. Unlike a business license, a permit often involves inspections and ongoing compliance requirements. Compliance is crucial for companies to avoid hefty fines, legal issues and even potential shutdowns.
The type of permit you need depends on your industry. Restaurants and food service businesses need health permits to ensure they follow food safety regulations. You may need a zoning permit for specific locations to confirm that you can operate there.
Businesses handling hazardous materials, large crowds or fire risks may need fire department permits. Companies involved in manufacturing, waste disposal or anything that could impact the air, water or land may require environmental permits. If you plan to build or renovate a space to operate in, you’ll likely need a building permit.
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The process for getting a business license depends on your location. Some states keep it simple, while others have extra steps.
For example, in California, most companies need a state business license plus a local license from the city or county where they operate. In Texas, there’s no general state business license, but many industries require special state-level permits. In Florida, companies often need both a state and a sales tax permit to sell goods.
To apply for a business license, you usually need to register your company name and choose a legal structure. For example, in a sole proprietorship, the business and owner are legally the same, meaning you’ll be responsible for any debt the operation incurs.
A limited liability company — or LLC — separates personal and business finances, offering liability and asset protection while still allowing flexible management and taxation. In some cases, you may also need an employer identification number from the IRS.
Fees and processing times vary — some licenses are issued in days, while others take weeks, especially if inspections or background checks are required. You need to renew most licenses annually. Make sure to check both state and local rules so you don’t miss any requirements.
Business permit requirements depend on your industry and location.
For example, in New York, restaurants must obtain a health permit from the state and often need additional local permits for food handling and outdoor seating. In Arizona, many businesses need environmental permits if they impact air or water quality. In Illinois, home-based companies may require a zoning permit to operate legally in residential areas.
To apply for a business permit, you usually need to provide details about your location and operation. Some require inspections, background checks or proof of compliance with health, safety or zoning laws. Health permits are particularly important in the food industry, even for home-based businesses. Permit processing times can vary, so it’s best to apply well before opening day. Many permits require renewals — be sure to track deadlines and stay compliant.
Skipping over licensing and permit requirements can lead to costly mistakes. To keep your business compliant, watch out for these common pitfalls:
Making sure your business has the right licenses and permits isn’t a one-time task — it’s an ongoing responsibility. The best way to stay compliant is to check your state and local government websites regularly and keep track of deadlines. Whether you need a general business license, multiple permits or both, understanding the rules will save you from legal headaches down the road.
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2025-05-05 14:07:47
After three decades of building companies, I’ve had enough distance to see the patterns. Starting with Ooma, then launching Jangl, evolving through The Quarry and Cc:Betty, and then leading product and engineering at companies like Facebook, Disney+, and TelevisaUnivision, I’ve been able to discern the good calls I made from the near misses. I’m now able to account for the landmines I only saw after I’d stepped on them.
I’m proud of what I’ve built. But if I start another company, these are some things I’ll do very differently.
Back in the Jangl days, I was in full sprint mode. Jangl was a direct-to-consumer service that allowed people to use an anonymous phone number—used, say, for online dating members to initially talk and text each other without exchanging real phone numbers. Everything was go-go-go: get the product live, raise the money, make the deals.
I hired fast, moved fast, and expected things to come together through sheer force of will. But chemistry doesn’t scale just because the headcount does. The team has to click — on values, on energy, on how they fight and recover. And most importantly, the founding team has to be aligned on why they’re building, not just what they’re building.
I got that wrong more than once. But I also got parts of it right. By the time I co-founded Cc:Betty — a smarter, more human way to manage email conversations — I was much more deliberate. Still, I wasn’t deliberate enough. There were subtle misalignments in ambition and pace that didn’t reveal themselves until we were already too far in. We were solving a real problem, but the glue wasn’t there.
Next time, that glue is the first thing I’ll look for.
If I start another company, I’ll obsess over team chemistry from the jump. Not just functional roles, but emotional dynamics. Do we challenge each other the right way? Do we recover quickly from tension? Do we all lose sleep over the same problems? And when we disagree, do we trust each other enough to keep moving forward without ego?
I’ll also be much clearer about the kind of company I want to build beyond the product. Is it a 100-person rocket ship with investor pressure, or a tight crew solving a gnarly problem with autonomy? Is it consumer or enterprise? Is it a long game, or a fast spin?
These aren’t just business decisions — they’re lifestyle decisions. When you’re early, misjudging this stuff sets the wrong tone for everything that follows.
And culture? It’s not a nice-to-have. It’s the operating system. Early-stage companies often treat culture as something that can wait until after product-market fit. That’s a mistake. Culture is how you get to product-market fit — and how you survive the chaos along the way.
When I look back, what I remember most vividly aren’t the roadshows or the launches. It’s the people—the ones who showed up with real energy and took ownership like it was their name on the door. The ones who made the late nights feel like early momentum. The ones who believed, even when the market didn’t.
If I start my next company, I’m building it around those people. Not just for skill set or résumé, but for character. For how they handle pressure. For how they help others rise. For how they take a punch and still come back aligned.
At its core, building a company isn’t about the tech. It’s about the people you build with — the relationships, the rhythm, the trust. That’s what carries you when the funding stalls, when the product flops, when the competitors move faster than you expected.
Next time around, I’ll build slower, but stronger. With the right partners. With full alignment. With a culture that’s intentional from day one. Because now I know: the product you ship is only as strong as the people you ship it with.
Michael Cerdá’s new book, Build Something: Building Products, Business & Culture – A Journey of Hard-Won Lessons and Impactful Outcomes reveals the untold true stories behind some of the most transformative technologies of our time.
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2025-05-05 13:36:23
While the Federal Reserve, as expected, held interest rates steady at the end of its two-day meeting Wednesday, interest rate decisions later this year bear watching.
As a small business owner, the dominating headlines regarding the tariffs, the stock market, and the rumors of recession can be overwhelming. The tariff policy is inconsistent and volatile and stock market is unpredictable.
There are limits on how small businesses can anticipate changes and mitigate risk exposure. It is important, therefore, to focus on the relatively foreseeable changes the Federal Reserve might make.
Several sources have broken down the impact of tariffs on small businesses in detail. The key takeaways included the fact that small businesses are hurt by tariffs, whether they rely on imports for operations or export their products and services. Domestic tariffs on imports increase the cost of production in the US. Facing higher production costs, importing businesses will have no choice but to pass those costs to customers (domestic inflation) or go out of business. On the other hand, foreign tariffs on exports will raise the price of US-produced goods abroad (foreign inflation). This reduces the demand for US produced goods and services in foreign markets. A trade war would hurt both domestic and foreign businesses and consumers.
Another key takeaway is the potential of a recession. Tariff-induced inflationary pressure felt by small businesses that leads to significantly reduced demand may result in job losses and a recession. When consumers face higher prices, they tend to buy less. With fewer customers, businesses tend to scale down operations or close altogether. As the employer of the largest share of private workers, if too many small businesses slow down or shut down, many jobs will be lost. If enough jobs are lost and unemployment rises, the economy will contract, and the US may face a recession.
Traders on the stock market try to anticipate changes in the economy. If the economy is doing well, companies on the stock exchange generally have plenty of customers and are likely to make profits. If prices rise and jobs are lost, fewer people are likely to buy products and services as much as they would have in better conditions. With lower sales and profits, the price of stocks is likely to drop. This is why the stock market plummeted when tariffs were announced and rebounded when on the news of a 90-day pause on tariffs. Traders expect businesses to perform better in the absence of tariffs and worse under the threat of a recession.
However, most small business owners are not active traders on the stock exchange, even if their retirement savings may depend on them. The intuition that fluctuations on the stock market should not have a lasting effect on their small business is largely accurate. Traders, in general, react to all kinds of factors, some unrelated to the wider market. For example, the recent developments in the AI space significantly impact mostly the largest tech companies and that volatility is reflected in all kinds of portfolios. The point being that volatility is the norm and small business owners need not stress about factors no one can control; factors that barely impact their business. Except when they do.
Ancient wisdom generally says the line goes up. There are dips here and there, but an upward trend is the norm for the average American who glances at their retirement investments every now and then. As such, sustained gains in the stock market are barely noticed. On the contrary, sustained dips raise eyebrows. Below is a chart of the historical values of the Dow Jones Index with recession years shaded in grey.
Stock Market Volatility v. Recession Years. Source: Macrotrends as of April 24, 2025
Some consider a significant drop in the stock market to be a signal of a pending recession. An IMF publication referred to asset prices as a “harbinger of recession”. Indeed, prior to every recession in the last 30 years, the stock market dipped and continued to drop well into the recession until some turning point. However, this is not always the case. Circled in red, April 2002 to March 2003, June to September 2011 and the first and final quarters of 2018, are periods of sustained stock market drops that did not lead to a recession. As recently as August, 2024, Forbes considered if the then ongoing stock market dive was an indicator of an impending recession.
The answer is yes and no. But, more often than not, a dip in the stock market is just that. A dip, sustained or not. The stock market is less a harbinger of a recession and more of a reflection of investor and, sometimes, consumer confidence. Investors are much more sensitive and reactive to current affairs – which is why the market is volatile. On the contrary, consumers are slower to respond and only react to big news. Of the four recessions in the last 30 years, the great recession of 2008 eroded consumer confidence the most, likely because of the catastrophic news in the financial markets. On the contrary, the COVID-induced recession was immediately countered by government putting money directly in consumers’ pockets and giving them the confidence to spend.
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Because if there is one economic metric capable of shaking consumer confidence to the core on a personal level, it is not the tariff levels, the stock market index, or even a sustained contraction in GDP (recession). It is the interest rates. Home loans, car payments, credit card debt, overdrafts, and personal, business, or student loans are among the most significant expenses in individual and family budgets. Any increase in interest rates means consumers and, specifically, small business customers will have less disposable income. That, when coupled with a downward trending stock market reducing the value of their retirement savings, means customers are more likely to save than spend.
Among the primary goals of the US Federal Reserve are to promote “maximum employment, stable prices, and moderate long-term interest rates”. The term “maximum employment” has been a subject of debate, but most economists would agree it is nowhere near 100% employment. Similarly, “moderate” when it comes to interest rates depends on the context of the economy. However, what is not up for debate is the goal of “stable prices”. Typically, the Federal Reserve tries to maintain an inflation rate around 2%. If, for example, the base tariff policy of 10% persists, the price inflation of any imported goods will be at a minimum of 10% and it is highly likely that the general rate of inflation will exceed 2%.
When inflation skyrockets, it is often the small businesses and consumers that bear the brunt. “The Federal Reserve seeks to control inflation by influencing interest rates. When inflation is too high, the Federal Reserve typically raises interest rates to slow the economy and bring inflation down” (The Cleveland Fed). A combination of low consumer confidence, high inflation, and escalating interest rates has been the death of many a small business. The loss of customers, the higher cost of business funding, the potential rental hikes, and the increase in the cost of imports often means small business owners struggle to stay above water.
The good news is that no interest rate hikes have been announced, as of early May. Unfortunately, it is unclear if and how a trade war will escalate. Regardless, for those looking to protect their small business from this economic turmoil, there are some steps to mitigate the impact of tariffs, a recession, and interest rate hikes.
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2025-05-04 13:39:14
Building a strong and positive brand perception is essential for any startup aiming to stand out in a crowded marketplace. The way your audience views your business can have a significant impact on its success. Brand perception shapes customer loyalty, influences purchasing decisions, and ultimately determines how your brand is remembered. For new businesses, understanding and managing this perception from the start can create long-term value.
What is Brand Perception?
Brand perception refers to how consumers view your company, products, and services. It’s not solely based on what you say about your business but also on how people experience it. This includes how your brand interacts with customers through different touchpoints, such as your website and social media platforms. A strong brand perception is rooted in consistency and trust, both of which are crucial for new businesses looking to establish themselves.
The Role of Consistency in Brand Perception
The way your business presents itself online and offline plays a significant role in shaping how it is perceived. Consistency across various channels helps create a cohesive and reliable brand identity. When customers experience discrepancies between how your brand is portrayed in different spaces, it can cause confusion and harm the trust you’ve worked hard to build. Maintaining consistency in your branding, communication, and offerings ensures that your audience sees a unified message.
Customer Experience as a Brand Perception Driver
Customer experience is another major factor in shaping brand perception. Every interaction a customer has with your business influences how they feel about your brand. From navigating your website to reaching out to your customer service contact center, each touchpoint should feel seamless and positive. A smooth customer experience helps create a sense of reliability and professionalism, making customers more likely to trust your brand. Likewise, providing excellent customer service can lead to positive word-of-mouth, which further enhances your brand’s reputation.
How Values Impact Perception
The values that your brand stands for can also affect how consumers perceive you. In today’s market, many customers gravitate toward businesses that align with their personal beliefs and values. Whether it’s sustainability, diversity, or transparency, brands that demonstrate a clear purpose and commitment to those values often build stronger connections with their audience. By sharing your brand’s story and mission, you not only communicate your values but also invite customers to be a part of something larger than just a product or service.
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The Power of Social Proof
Social proof is a powerful tool in influencing brand perception. Consumers often look to reviews, testimonials, and online feedback to inform their purchasing decisions. Positive reviews and testimonials can help establish trust with new customers who may be hesitant to try a product or service. On the other hand, responding to negative feedback in a thoughtful and professional manner shows that your business cares about improving and values its customers’ opinions.
Brand perception is a critical component of your start-up’s success. By understanding what influences how customers perceive your business and taking proactive steps to manage it, you can build a brand that resonates with your audience and stands the test of time. To learn more about the basics of brand perception, feel free to look over the accompanying resource below.
Image from Microsoft Stock Images
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2025-05-04 13:09:43
When working for a startup or scaleup, a big part of the finance leader’s role is helping the founder run successful fundraising campaigns. A significant amount of preparation goes into a fundraise, which I will now outline, starting with the communication needed between the founder and the finance leader.
Businesses fundraise equity to start a business, to develop the products or services, or to grow the business—anything to achieve the business goals.
There are a few factors regarding the timing of fundraising and, ultimately, the exit. Have a conversation with the founder on their current thoughts (and the board’s thoughts) on the timing of a potential exit.
No doubt the goal to exit will change over time, but it’s a good idea to understand when they will want out of the business, as this will help you with preparing the business for the exit. Some founders want to grow their business quickly, exit and move on to the next venture. Others take a slower and more measured approach. Understanding this will change the way you plan for liquidity.
As part of those discussions, it’s important to understand the estimated timelines of fundraising. What goals does the founder want to achieve before the next fundraise, and does the current cashflow forecast allow for this? Preparing for a fundraise can take many months, and you ideally want to be prepared for a fundraise with minimal effort once you have established the baseline, in particular, a good level of reporting and a working budget model.
An acquisition or an IPO can take between one and two years to complete, so the preparation is intense. Ideally, you want as much notice as possible.
A fundraise can take anywhere from three months (generally only if it’s a small raise or CLN with existing investors) all the way up to eighteen months. In 2021 six months was considered a good time frame, but I’m now seeing this getting closer to nine to twelve months, and sometimes even more.
As it takes such a long time to fundraise, timing is key and there are a few important considerations, including:
You need to ensure that the finances are sound, the KPIs are defined and collated and the unit economics make sense. You also need to prepare for the fund-raise itself. This includes the pitch deck, dataroom (see below) and the storytelling: what are the numbers saying? What has the business’s journey been so far, and where is it planning on going? Stories are easier to follow and are more interesting.
As there is a lot of work involved, I normally have a potential fundraise in the back of my mind at all times. If the management accounts are prepared with potential investors in mind, the balance sheet is always reconciled and clean, the KPIs are always reviewed, adjustments aren’t reserved for year end, and the P&L tells the same commercial story as the business. There is then less work to do when the business decides to fundraise, and you can pivot much faster into fundraise mode.
Ideally, you want enough cash runway to last you at least as long as the fundraise process in a worst-case scenario—12 months as well as some buffer. Ideally, I would say 18 months. Appreciate that most startups I work with leave a lot less time than that for the fundraise process, and you must work with that decision.
When the business starts the fundraise process, many of the company’s leaders will be tied up and focused on the fundraise. It’s therefore useful to have a plan for who is going to run the business when leaders – likely the founder and you – are tied up.
With investor preparation, it’s always worth the founder taking time to speak with investors. The founder should always be in fundraising mode. Potential investors can offer the founder suggestions on why they think the business is a good investment (or not). It’s also easier for the founder to approach warm leads than cold leads when a fundraise process begins.
Draft a list of potential investors and what each of them could offer, not just financially but also with their experience, skills and network. Consider who the business wants to be a lead investor, and who the business wants on the board. Start with the least favourable investors and work up to the favourite. By organising it this way, the pitch will be nailed down by the time the business gets to the preferred investors.
Supporting a startup business to fundraise efficiently is a huge part of a finance leader’s role. This is to ensure that the business can continue to grow, build their products or services, and keep the business running.
By maintaining clean financials, simple and easy to understand reporting that tells a good story as well as keeping a control on cashflow forecasting, the business can stay ready to capitalise on any fundraising opportunities that arise.
A well-planned approach to fundraising not only increases the likelihood of success but also sets the foundation for a smoother path to long-term growth and a successful exit.
This article is an adapted extract from Financial Leadership Fundamentals: How to become a CFO in a startup or scaleup by Alysha Randall. The book provides a guide for those seeking a tried-and-tested path to success as a CFO, providing both the practical and mindset tools needed to take ownership of this influential role in a startup environment.
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