In the fast-paced world of business, raising capital can often feel like an uphill battle. But what if we told you there's a time-tested marketing principle that could transform your capital raising strategy? Enter the "rule of seven".
What is the Rule of Seven?
The rule of seven is a classic marketing concept that states a potential customer needs to hear your message at least seven times before they take action. While this rule was originally developed for traditional advertising, its principles are highly effective when applied to capital raising.
Applying the Rule of Seven to Capital Raising
When companies embark on the journey of raising capital, they often underestimate the need for repeated exposure. Many believe the process is straightforward: an investor discovers the opportunity, does a bit of research, and decides to participate. However, the reality is far more complex.
Here's how you can leverage the rule of seven in your capital raising efforts:
1. Create Awareness
The first step is to ensure potential investors are aware of who you are and what you do. This is about creating visibility. Think about it – if investors don’t know you exist, how can they consider investing in your company?
Use Social Media: Platforms like LinkedIn are invaluable for creating awareness. Regularly update your profile and post engaging content about your business.
Networking: Attend industry events and conferences to meet potential investors.
2. Build Consideration
Once you've captured attention, the next phase is consideration. This is where the rule of seven really comes into play. Investors need multiple touchpoints before they feel comfortable committing funds.
Consistent Updates: Share milestone updates related to your business. This could include new clients, key metrics, team expansions, or awards.
Engage Past Contacts: Just because an investor said "no" before doesn’t mean they won’t change their mind. Keep them in the loop with your progress.
3. Manufacture Serendipity
Create opportunities for potential investors to feel like they’re in the right place at the right time. This concept, known as manufacturing serendipity, can be powerful in building investor interest.
Strategic Visibility: Ensure your achievements and progress are visible across multiple channels. This keeps your company top-of-mind for investors.
Highlight Traction: Regularly share updates about your traction and milestones. This reinforces the growth and potential of your business.
Maximising the Rule of Seven in the Digital Age
With the rise of social media, the number of touchpoints has exploded. Today, it's possible for someone to see your message seven times in a single day! Use this to your advantage by:
Diversifying Content: Post different types of content – articles, videos, infographics – to keep your audience engaged.
Leveraging Analytics: Use analytics tools to track which content performs best and tailor your strategy accordingly.
Final Thoughts
The rule of seven isn't just a relic of traditional marketing; it's a powerful tool for modern capital raising. By creating awareness, building consideration, and manufacturing serendipity, you can significantly increase your chances of attracting investment.
Remember, raising capital is a process. It's about building relationships and trust over time. So, embrace the rule of seven and watch your capital raising efforts soar.
