Strong business foundations key to winning investors, says expert
Chief Executive Officer (CEO) of Grow It Green, Kojo Mensah Adom, has advised entrepreneurs to focus on mastering the fundamentals of their businesses before seeking investment.
As Ghana’s startup ecosystem continues to grow, access to funding remains a major challenge for many early-stage entrepreneurs. While interest in entrepreneurship is on the rise, many business owners struggle to attract investment due to weak business fundamentals, poor financial literacy, and lack of preparation during investor pitches.
In recent years, investor networks, accelerators, and pitch competitions have become key avenues for startups seeking capital.
However, many promising ventures fail to secure funding because they are unable to clearly articulate their market potential, growth strategy, or demonstrate traction.
Speaking on Business Breakfast on Zed FM, Mr. Mensah stressed that successfully pitching to investors goes beyond flashy presentations or lengthy proposals. According to him, what truly matters is how well entrepreneurs understand their businesses and communicate that understanding with confidence and clarity.
The Grow It Green CEO noted that investors are drawn to founders who not only present compelling market opportunities but also demonstrate a solid grasp of their financials, including key performance indicators. He encouraged entrepreneurs who are not financially inclined to consult finance professionals or knowledgeable friends ahead of their pitch.
“Knowing your market size, having a clear value proposition, and identifying the threats and weaknesses of your business are all critical. Investors are not only interested in the good news; they also want to know you are realistic and have contingency plans for potential challenges,” he said.
Mr. Mensah also highlighted the importance of assembling a capable team and developing strong relationships with investors beyond the initial pitch. He explained that even when an investor declines a proposal, maintaining the relationship can lead to future opportunities.
“Sometimes an investor’s ‘no’ is just a ‘not now,’” he remarked, adding that some investors prefer a phased approach—offering small initial investments to test viability before committing more funding.
The Grow It Green CEO cautioned entrepreneurs against pitching to the wrong type of investor, especially those whose expectations do not align with the business’s current stage. For instance, he said early-stage ventures still developing their product-market fit should target investors who support idea-stage businesses, rather than those seeking established turnover levels.
Mr. Mensah emphasized that entrepreneurs must also conduct due diligence on investors to ensure alignment.
“It’s a two-way street, Entrepreneurs must assess whether the investor is the right fit for their vision and stage of growth,” he emphasized.
