Running a Startup is not an easy task. There’s obviously a lot of work involved. Now, some startups can manage to pull themselves up by the bootstraps.
However, most require external investment to help them expand. In fact, external investment offers more than just money – angel investors bring knowledge and a wide network to the table. This provides startups with a competitive advantage.
Of course, investors are a tough crowd, and they don’t intend to spend unless they’re guaranteed to receive their pound of flesh. So, what makes a startup appealing to investors today? Well, a lot and one of those things happen to be an investment in CRM systems. Here’s why.
CRM systems turn startups into process-centric businesses
There are two key areas that determine a startup’s success. These are ‘product’ and ‘process.’
It’s possible for startups to perform even with a mediocre product as long as their processes are fine-tuned. This is not true for the reverse. Even a standout product cannot save a business if its processes aren’t in great shape. An optimized CRM system can help startups adhere to effective processes. For instance, sales teams can log entries of visits, follow up with leads, and track conversions.
All of the above can be studied by the startup to improve the process further and boost revenue. As they say, effective management is all about measurement. Needless to say, startups that follow robust processes do well with investors. It shows investors that you are methodical and approach scaling in a structured way. In other words, you are predictable and safe.
CRM systems provide a clear forecast estimate
Certain things are of extreme importance to investors. In this case, it’s a startup’s track record in the performance department and the promise it holds in terms of growth.
An optimized CRM system provides a clear picture of how a Startup has performed with regard to these factors. It is capable of providing investors with all the necessary details concerning what the startup has achieved and what are the plans to improve in the future.
For instance, startups use customer data and lead data to develop detailed investor pitches. Now, this data is also used by investors to determine whether or not the startup can hit the set target.
A CRM system allows the startup to justify its capabilities and helps investors to make data-driven decisions.
At iMovo we offer CRM solutions that help you understand your customers better through their personal preferences. If you are looking to implement or even upgrade your CRM solution, contact us today. With iMovo’s technical expertise, implementation will be smooth and seamless. We provide ongoing consultancy and training, tailored to your company’s needs.