In this episode, Tiffany Grant, host of Money Talk with Tiff, sits down with Leslie Danford, founder of Vitaminis, to discuss an intriguing topic—attracting investors for your startup. Leslie shares her invaluable insights on what investors are looking for and how you can pitch your business successfully, whether running a tech company or opening a retail shop.

Check out the full shownotes: https://moneytalkwitht.com/podcast-show-notes/attracting-investors-for-your-startup/

Key Points Discussed

1. Defining Startups: Leslie gives a broad definition of startups, emphasizing that they are more about the mentality of creating something new than the type of business.
2. Basic Unit Economics: Leslie highlights the importance of breaking down your business to its most basic unit and ensuring it is profitable at that level.
3. Confidence and Sales: The significance of having confidence and treating your pitch as a sales presentation, even when you're unsure.
4. Investor Trust: The role of personal grit and determination, relationships, and the importance of being seen as trustworthy by investors.
5. Relationship Nurturing: Building and nurturing relationships with investors over time to establish a stronger foundation for future investment.

About Our Guest

Leslie Danford, founder and CEO of Vitaminis, a clean-label functional food and beverage brand. She has always been passionate about nutrition, but she is not a foodie. For her, it's like a math equation, and it's important to cover all of your nutritional bases.

In 2020 she combined her personal interests with her formal business training to launch Vitaminis. Previously she worked in beverages and consumer products at large corporations. She earned her MBA from Harvard University and BA from the University of Chicago.

Resources Mentioned

• Vitaminis Website: vitaminisbrand.com
• Vitaminis on Amazon: https://amzn.to/3Xp9JT7 (affiliate link)

Connect with Leslie

• Website: vitaminisbrand.com
• Social Media: @vitaminisbrand on all platforms
• Retail Availability: Fresh Thyme Farmers Market and The Fruitful Yield (Midwest)

Connect with Tiffany

• Website: moneytalkwitht.com
• Social Media: @moneytalkwitht on all platforms

If you enjoyed this episode, please take a moment to rate and review us on your favorite podcast platform. Don't forget to subscribe to Money Talk with Tiff so you never miss an episode!

Thank you for tuning in! Be sure to visit the show notes for all links and mentioned resources. Until next time, spend wisely by spending less than you make!

Support this Podcast

Copyright 2024 Tiffany Grant

You know what it is. That's right. It's time to talk money with your money

nerd and financial coach. Now tighten those purse strings

and open those ears. It's the money talk with Tiff

podcast.

Hey, everyone. I am so excited because I have Leslie Danford on the

line now. Leslie's here to talk to us about something I've never talked about on

the podcast before, and that is attracting investors for your

startup. So, hey, Leslie, how are you? Good. Thank you so much for having

me. Yes, thank you so much for coming. So let's just dive right

on in. First and foremost, what are investors

looking for? Well, first, actually, let's start off with

defining what a startup is. So who are we talking to right now?

Oh, that's a great question. In my definition,

I have a pretty broad definition of startup. I would call it

anyone who is trying to start their own

business and get it off the ground. So that could be services,

that could be making products, that could be opening a retail shop.

I think in my mind, it's more about the mentality. It

could be starting a podcast. In my mind, it's the mentality

of kind of going off on your own, creating something that's

new and unknown and kind of seeing that through.

Gotcha. Gotcha. Okay. Yes. And I'm glad that we defined that, because

everybody's definition of startup is different. And I think most people,

when they think of startup, they're like, oh, tech companies. Cause that's usually

what gets the, you know, that's usually what people think about

most. That's what gets the most attention. But here we're talking

to pretty much all aspiring business owners. So with

that being said, what are some things that

small business owners can do to attract those investors

in capital? Yeah. So I was thinking about

this, and I have a couple of thoughts. So,

one is to break down your business

to the very most basic building

block. So in my case, my business is called vitamin es. We

make juice shots, functional juice shots. So

for me, the most basic building block of my business is a

juice shot. One single juice shot. If, for example,

you were opening multiple restaurant locations or retail

locations, your basic unit would be a retail

store. And then to really look at your business

in terms of that one unit, because I think when people think about

startups, they think, oh, they don't have to be profitable. It's okay to lose money

as long as you're growing and that kind of thing. And that is true

to some extent, but that basic unit has to make

sense. So in my case, if it, you know, the cost of making a juice

shot and then the price of selling a juice shot, you have

to be able to make money on that one unit. And then, sure, the overall

business might need to lose money for a little while till we get to scale,

but if you don't have the profitability or demand

at the unit level, you'll never make it. So I think

that's one thing that investors really, really look

for, and the other one is a little bit different,

but the other one is mentality. And I have been learning this

lesson. So I started vitamin e's. I had the idea in 2020. I launched the

business in 2021. So it's been about three years, and this is something I'm still

learning. But you know that old saying of, like, you have to believe in yourself

for other people to believe in you? I really think that's

true with investors. And, you know, I come from a more traditional

business background, bigger corporate companies, et cetera, et cetera.

And when you're pitching your business to investors, it

is very much a sales pitch, and you have

to sell the thing. So even if you're doubtful, even if you're not sure,

even if you have a bunch of questions, you are selling this thing

like it is the best new thing out there. And you have to

believe it. Like, you have to do whatever you need to do

internally to believe that you really are going to make it work. You really

are going to figure out it really is going to be the next big thing,

because that has to come out in these conversations.

And so that's a big one. And you're going to be doing that not just

with investors, but with retailers and other partners as well. So those are a couple

of the initial thoughts that I had. Yeah, so, okay, I'm gonna

back up a little bit, because the first thought, I

wanna stay there for a minute, because one thing

about small business owners is we treat our business like our

babies, right? And so we're like, we don't wanna abandon our baby.

You know, even if our baby doesn't make money, it doesn't make

sense. We still don't wanna abandon our baby. So I'm glad that you

bought that up, because if it doesn't make money, it doesn't make sense.

And a business is a business. So I just

wanted to reiterate that point, because I've actually been in a situation

where I had a business and it made

good revenue, but it did not make good profit. And so

looking at the profit side of things, I said, you know, I could do

something else and make more profit than this. And so I let that

business go. And so I just wanted to reiterate that point for

our audience that, you know, it has to make sense at that

basic unit level, like you mentioned. Otherwise, try

something else. Like, there's so many different businesses that you can do out

here that you really don't have to be

tied to that one thing and treat it like it's your baby. Yeah, totally.

And if you want to have a hobby or a passion project that's not profitable,

that's fine. I think it's more like, you have to know the hat and understand

that. Right. Like, if you're making doilies for fun and selling them

at a loss, great. But that's not a business. So, yeah, I completely agree with

what you said, and I think sometimes it can be a little bit

overwhelming to, especially if you don't have a finance background or you're new

to this world, to think about, like, all the profitability

and everything. But I think if you can break it down to that unit, that

is a good place to start. Absolutely. And then I want to hit on your

second point, too. Confidence. I will

say, like. Like you said, confidence. Sales. And it's something

that I had struggled with for a long time. I used to be like, oh,

my gosh, I'm not good at sales. I hate sales, that type

of thing. But it's because I just didn't have the confidence at the time.

And now that I do, things are going better. So I

just wanted to reiterate that as well. That

confidence is a big thing. They say, fake it till you make

it. Well, that's real. Absolutely. And

this is one. I actually started learning this when I was in corporate. So

before I started a business, I did a rotation in the

sales department, and I worked for this man who

was a very experienced salesman, and he gave me some feedback early on. He

said, every single meeting you have, whether it's with an external

person, an internal person, the CEO of our company, me,

anyone, your boss, the very first thing you got to do is

open up with some selling points about things you've accomplished. So if

you're, let's say you're asking for resources or you're giving a business update,

start off. Even if it's casual, start off with, yeah, we've had a great week,

or here's a win we had last week. I'm really excited about, just slip it

in there. And I remember thinking, that feels so dirty to

me. Like, I thought it was like, somehow wrong. And I don't

know if this is a gender thing or what. I'm not gonna speculate. I kind

of suspect it might be, or maybe it's just me, but I was like, I

don't really want to, like, toot my own horn and brag and whatever, but,

man, this guy was right, because you can do it in such a way

that it's not bragging, it's rather celebrating or

informing. But if you can do that, you position

yourself so much better for whatever it is that you're going to try to do

right afterwards, whether it's that ask or that update or whatever it

is. So this is not just a startup lesson, but, man, when you're

at startups, it is like all the more important because it's

just you. You got nothing. You're asking for a lot. So, yeah, you

need that confidence and fake it till you make it. If you don't have

it, do what you can to make it work until you can

have the confidence within you. Yes, yes. I love that.

And I'm actually writing that down for future reference

because when I was in corporate, like, you know, I always

kept track of all of my accomplishments and things and told people

because I was in HR, and I would always tell people, you know, keep track

of everything that you do throughout the year. So that way when it comes time

for, you know, promotions, raises, whatever, like, you have all

of this good stuff already. Like, you don't have to jog your memory for

it. And I never thought about, hey, in meetings,

start off with, oh, yeah, we had a great week. We just

made $20,000 this week or whatever the case may be,

and using that as a starting place for

meetings to start off at the right foot. So I love that you said that

and I never thought about that. So that is a gem right there. Awesome.

Thanks. Glad it helps. Yeah. So

let's go into a little bit more when it comes to

investors for, so we already know we need to make sure

that we're making money. It makes sense to investors. We have to have that

confidence. We have to exude that

confidence when it comes to meetings and the ask and everything like that.

All right, so we went over those. What are some other things that investors

are looking for that we can do? Sure. So one other thing that

I've realized is as a startup, I mean, the

whole definition of startup is it's very risky, it's very

unknown. If it was known and you knew it was going to be

successful, then there would be no risk involved, and

there would be no pitch needed. So by definition, starting something new is

very risky. And so in those earlier stages,

investors are investing in you as a

person. And I think I knew that

intellectually. If someone had said it to me early on, I'd be like,

yeah, yeah, that makes sense. But now, a couple of years in, I'm realizing,

for example, you can't just make a deck about your business

and talk about how great your business is and expect to get a check early

on. It doesn't matter what's on the deck. They need to know

you. They need to know a couple things.

One is, do you have the grit

to make it? Because even if you have the

best idea, even if you have the perfect background for

starting a business, it is hard. You are going to wake up many

days and feel completely discouraged. You're going to be told no a thousand

times. You're going to wake up and wonder what to do with your time, because

no one's giving you direction and you feel like you just want to scrap the

whole thing. And it takes a particular kind of

person to continue going on.

That doesn't mean anyone can't do it. Anyone can do it, but it takes a

particular mindset. And so I think investors want to know that you can do

that. So it could be looking at your experience.

Have you had in your background other times where you've

persevered? Could be in a business setting. It could be in a personal

setting. I mean, I have a daughter with special needs, and we've had tremendous

challenges trying to get her resources and et cetera, et cetera. So it can be

anything but really demonstrating that you have that grit and determination,

problem solving, and also along the lines of

investing in you as a person, relationships matter. And this is another

one that I think sometimes feels like a little dirty somehow, like

selling. But it does matter. You know, how, what

connections do you have to these potential investors? Can you get a warm

introduction? Can you have a friend or mutual contact

put in a good word for you? That makes a really big difference,

because then you're kind of a more known entity. So

maybe a former colleague can vouch for the fact that you have some

grit, determination, you're trustworthy. That's going to go a lot further than you

just trying to say it or them trying to pick it off your resume.

So that's another thing, I think, those connections, building those warm

connections, working those connections, that is very valuable as well.

And the third piece along the lines of investing is you, in you as a

person. Is build a relationship with that investor, and this

can take a lot of time. There are some investors I'm in conversations with

that I've been in conversations with for over a year, and when we first

met, we didn't know each other that well. The business was still

very small. They weren't quite quite comfortable with writing a check. But I

continue to keep them posted, you know, back to that conversation about selling those

achievements. I send a quarterly update to my investors about

all the things we've achieved and also, you know, challenges.

But I forward those achievements to these potential investors of,

hey, just thinking about you, keeping in touch with you. Here's some things we've

achieved. It could be that. It could be, for

example, if you're considering an update to your business, maybe

a new package or a new strategy or a new plan, run it

by some of those potential investors, say, hey, you know, I know you've got really

valuable background in this space, and I'd love to get your thoughts on this.

And I think if you can kind of invest in that relationship that way, make

them feel involved, show them your grit and

determination, just surely by keeping in touch and all the things you're

achieving over time, they will build that trust in you.

So I think those are just a few additional thoughts about how to get

those first couple checks. I think later on, sorry, I know I'm going on and

on. I think later on in the business, it's very easy to get checks, right?

Like, if you're killing it, you're bringing in millions, you've got big

names already invested. Well, then it's easy, then. Everybody wants to get in on

that. But in the early stages, it's about you and those

relationships and showing people that you have what it

takes to stick through and make this thing work over

time. Yes. Yes. I love that. I

think people really discount

relationships, and especially in this day and age

where everything's about technology and everything like that. People

are more disconnected, it feels like. But that's what makes those

connections even more special now. And so I

wholeheartedly agree with you with nurturing those

connections and keeping in touch. Sent a newsletter out

to my email subscribers for the first time in a

while just because I had a lot going on this summer. And I got

so many responses, you know, even from previous

clients, from, you know, different

news outlets and things that were on my list that are like, oh, you know,

we're interested in hearing more, you know, that type of thing. But had

I not sent out that, you know, connection or sent out that

newsletter, then that wouldn't have come about. So I

completely agree with keeping people up to date. And I feel like sometimes

as business owners, we get taught that,

you know, business is business. It's not personal. Keep your personal life out of things

and your personal things or what have you. But in my

experience, I feel like that's what makes the connection deeper. What

do you think, Leslie? Definitely, I definitely agree. And I,

again, I don't want to like gender stereotype, but I know for me

personally, for many years, I did not, I purposely did not

share a lot about my personal background because I have four

kids. You know, all these other things that I thought people

would kind of take that information and possibly judge me for

it. And I do think some people will. You know, like a man who tells

people they have four kids, it's like, oh, what a great provider he is. The

woman tells people she has four kids and they're like, ooh, is she really serious?

So I do think there is some risk to that. But I also think this

goes back to, you have to take some risks and do some sort

of uncomfortable things. So whether that's having the

confidence and kind of selling yourself, whether that's

like reaching out and sharing some, a little bit more personal

information or making that extra point of contact, even if you have a second

thought, like, oh, I don't want to bother this person, or they won't really care,

you kind of have to put yourself out there, and the more you do it,

the more comfortable you will get with it. So, yes, I completely agree

that it's necessary. And the people that share that stuff with me, I

think about that. I'm like, you know, the people that share those personal details or

thoughts with me about their lives or what they're struggling with or what they're going

through more than just the business updates, I do feel more connected to

them. I do remember them, I think of them. I wish them well with all

their endeavors. And so why wouldn't that be true the other way around? So, yeah,

I totally agree with that. Yes, for sure. Well, I

think you gave us plenty to chew on

today. Now, if people were interested in learning more

about you or anything that you offer, how could they find

you? Yes, please come to our website,

vitaminisbrand.com. so it's like the word vitamin

but with minis instead of min at the end. Vitaminisbrand.com

dot. We're also on all the social media platforms

are handle as vitamin e's brand. And we are on

Amazon and Walmart marketplace if you search for us there, and if you

live in the midwest, we're sold at fresh thyme farmers

market and the fruitful yield and hopefully some more retailers coming

soon. Definitely in the future. Leslie, I

wholeheartedly believe that with, with the gems that you just dropped

today, I'm sure you'll have no problem getting into more

retailers. But thank you so much. And if you all did not get all of

that, I'll make sure I have it in the show notes, so definitely check those

out. Thank you so much again, Leslie, for coming on the show today. I appreciate

the gems you dropped. Thank you. Bye.

Thank you for listening, joining and being a part of the Money Talk with TIFF

podcast this week. You can check Tiff out every Thursday for a

new money talk podcast. But if you just can't wait until next week,

you can listen to previous podcast

episodes@moneytalkwitht.com or

follow TIFF on all social media platforms at

moneytalkwitht. Until next time, spend wise

by spending less than you make. A word to the money wise is

always sufficient.