Option 1: Reassess and Revise Your Pitch

Reflecting on my own journey, one of the earliest lessons I learned was the importance of a strong pitch. I recall my first startup closure due to funding issues, despite having previously raised over $15 million for a venture in the early 2000s centered around online video—a concept that was ahead of its time.

Three of us on the tech team believed the only hindrance was our target market. Although the technology functioned well and we had a dedicated user base, we were drawing revenue from the wrong demographic. Our last-ditch effort to persuade existing investors to pivot from a B2B to a B2C model was rejected, leading us to abandon our efforts.

YouTube, the platform we were trying to emulate, launched just four months later.

But giving up isn't an option for you. Let’s redefine that first option:

Option 1 (for real): Revamp Your Pitch

The initial step you should take is to fundamentally alter your positioning and messaging. Create a fresh investor pitch that highlights the unique elements of your business model. Essentially, your pitch should serve as a marketing campaign aimed at convincing investors that your idea will yield substantial returns.

To illustrate, I often produce valuable content, but my editor will remind me that I struggle with creating captivating titles that draw readers in. If I fail to capture your interest, my advice becomes irrelevant.

Your pitch is the title of your business. It should evolve with each presentation based on the feedback you receive. If you've delivered numerous pitches without making any adjustments, it’s time for a significant overhaul. If you're unsure where to start, seek assistance—not necessarily with your business concept, but with the presentation itself.

If revising the pitch doesn’t work, it might be time to explore other avenues.

Option 2: Innovate Your Concept

Creating a compelling pitch deck is certainly easier than developing a groundbreaking product. However, many investors turn down ideas because they lack the disruptive potential needed to stand out.

In my extensive career, I've come across countless investors, and I can assure you that none are looking to invest in modest returns from conventional concepts. They are seeking opportunities that promise significant growth and rapid returns, especially in the early stages.

Your idea must be bold enough to attract investment. While not every startup needs to be a "moonshot," there exists a crucial balance between profitability and growth, which is often difficult to achieve simultaneously.

Option 3: Reevaluate Your Funding Strategy

While it may seem simpler to seek funds from affluent investors, not every business requires external financing to thrive. In fact, many successful startups have flourished without outside investment.

Consider focusing on establishing a revenue stream rather than merely building a customer base. Shift your mindset from quantity to quality, proving the skeptics wrong by generating real income.

Create a minimum viable product centered around your core concept and launch it to actual customers. Utilize no-code or low-code solutions to mimic the costly infrastructure that will eventually set you apart. Begin with one paying customer, then grow gradually to establish a sustainable revenue model with margins that increase over time.

The truth is, many founders approach investors too early, long before they are ready to deploy funds effectively. By prioritizing revenue generation, you can sidestep the investability dilemma altogether.

Go back to the drawing board—revise, innovate, and rethink. Return with a stronger pitch, a refined idea, and a solid plan.

If you find this approach resonates with you, consider subscribing to my free newsletter at joeprocopio.com to stay updated on my latest insights.

For more hands-on guidance, check out Teaching Startup, which offers a free 15-day trial. This resource is less than 1% of the cost of traditional consulting, available at your convenience without unnecessary small talk. Use the invite code MEDIUM to enjoy your first month at half price after the trial period.

This article originally appeared in Inc. Magazine, where I share weekly advice on startups and innovation.

Section 2.1: Addressing Co-Founder Challenges

Navigating co-founder dynamics can be tricky, especially during funding rounds.

The video "How To Handle Co-Founder Issues When You're Raising Money" offers strategies for managing co-founder relationships in high-stakes situations.