Are You Getting Your Product in the Right Doors?
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Hey Founder.
So, you're on a mission to change the world with your startup. You've got investors eyeing your company, eager to jump on board. But how do you convince them that you’re not only knocking on lots of doors, but also the right doors?
I once worked with an exciting company whose goal was to break into 1,200 retail doors, but they exceeded expectations and secured placements in 4,000 stores. Impressive, right? Well, hold your applause because there's more to the story.
Sure, the number of doors you're in is important, but it's only half the battle. There are three other crucial metrics that savvy investors like us look for.
First up, velocity. This measures how quickly your product moves off the shelves once it's in the door. But it's not just about speed; it's about context. If your product flies off the shelves at a rate far exceeding the category average, you're onto something special.
Next, let's talk about choosing the right doors. It's not just about quantity; it's about quality. Are you targeting retailers where your ideal consumers shop? Walking through the wrong doors can be a costly mistake. Focus on aligning your distribution channels with your target audience.
Lastly, do you have the right resources in place for each channel? Whether it's Whole Foods, Walmart, or direct-to-consumer, each requires a tailored approach. Don't spread yourself too thin. Instead, concentrate your efforts on maximizing resources and revenue from key channels.
At ScalePassion, we advise impact businesses to laser-focus on hitting specific revenue targets before expanding into new channels. This demonstrates efficient resource allocation and strategic decision-making.
Remember, the team you need for direct-to-consumer sales may be different from the one required for pitching to big-box retailers. It's all about playing to your strengths and optimizing your approach for each channel.
BTW, we ultimately invested in the company that nailed these key questions. So, when crafting your pitch decks, be sure to address these points to make it easier for investors like us to see the potential in your company.
Hope this insight proves valuable. And if you’re in the trenches figuring out how to make your change-the-world company attractive to investors, we’re here to help.
Sincerely,
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