By Margaret Hedderman
Imagine pitching your business to investors and realizing halfway through—you’re speaking a different language. They ask for metrics and reports you’ve never even heard of, much less have developed. For many founders, the gap between vision and know-how can make or break their chances to succeed.
That’s why Startup Colorado launched the Founder Coopetition // Growth Challenge—to help rural entrepreneurs accelerate growth and, if necessary, secure funding. Building on the fundamentals of our Idea Factory, the Growth Challenge equips market-ready businesses with the tools to transform into impactful, scalable enterprises.
As part of this program, we’re highlighting the most valuable insights shared by our guest speakers, starting with angel investor, founder, and the Strategic Partnerships lead at Forecastr, Jeff Erickson. In his recent presentation, Jeff offered advice on financial forecasting and fundraising, tailored specifically for founders preparing to scale. Here are his top three tips every rural founder needs to know.
1. Learn How to Tell Your Business Story in the Language of Finance
One of Jeff’s first messages was the importance of founders understanding and speaking the language of finance, especially when engaging with investors.
“There’s often this gap between the language that investors speak and the language that founders speak—where it’s all about vision, and ‘changing the world.’” He urges founders to spruce up on their understanding of finance, especially startup finance.
“When an investor asks, ‘What’s your CAC?’ They can’t freeze and go, ‘What’s CAC?’”
(More on that in a minute.)
On top of that, founders must be prepared to translate their business’s story into numbers that matter to investors. Learning the language of finance is crucial—not just for fundraising, but also for day-to-day business operations. Jeff recommended creating a financial model and tracking key business metrics early on, which will not only help in raising capital but also in making better operational decisions.
Beyond understanding financial terminology, Jeff emphasized the need for founders to identify the key drivers of their business. These are the elements that make or break profitability and growth, and founders should start tracking them early.
“It’s not just knowing the language, but knowing what are the key drivers that matter to your business.” Jeff explained. “If you can pull those out and start measuring them, that’s what will make a difference. That’s where investors will say, ‘Okay, this founder understands what actually drives their business.’”
For instance, one key driver could be customer acquisition cost (CAC). This may begin as a hypothesis, but as you start tracking it early, eventually you’ll have a baseline to measure against. Then as you get further into it, you can start measuring things like the lifetime value of a customer—i.e. how long they stick around.
“If you notice that they pay for the first six months, and then they leave you, now you’re measuring your churn,” Jeff said.
Churn could be a significant lever in which founders focus on strategies to retain customers for an additional six months. Jeff noted that one way to “pull that lever” might involve adjusting pricing to improve retention.
By tracking these key metrics, founders can show investors they know how to steer their company in the right direction. More importantly, this level of insight allows founders to make data-driven decisions about where to invest time and resources, creating a clearer pathway for sustainable growth.
3. Build Relationships with Investors Before You Start Fundraising
Rural entrepreneurs often face a unique challenge when it comes to fundraising—limited access to investor networks. Jeff highlighted that building relationships with investors early, well before you actually need capital, is crucial.
“The fundraising process ideally starts 12 months before you actually need capital,” Jeff advised. This timeline allows founders to build relationships, create an investor pipeline, and generate momentum before they officially launch their fundraising efforts.
Jeff encouraged founders—even those at the earliest stages—to establish a habit of sending monthly investor updates, even if they aren’t actively raising funds. He says this helps founders stay top-of-mind and build a foundation of trust.
By sending out these regular updates, founders can keep potential investors informed and engaged, laying the groundwork for smoother and more successful fundraising campaigns. For rural entrepreneurs, who may not have the same face-to-face opportunities as urban founders, these updates can be a powerful tool to maintain investor interest.
Final Piece of Advice: Hire a Good Startup Attorney
Before concluding, Jeff added one more crucial piece of advice for all founders: hire a good startup attorney.
“I know they’re expensive, especially the really good ones, but you need a good, experienced startup attorney on your side,” Jeff said.
While it can be tempting to skimp on legal fees early on, the consequences of poor legal advice can be costly in the long run. He explained that a solid startup attorney can protect founders from making critical mistakes in how they set up their company, structure deals, and negotiate with investors. This is particularly important as founders navigate the complexities of early-stage funding.
Ready to Scale? Start with the Right Foundation
For early-stage founders, taking your business to the next level starts with the right foundation. The Founder Coopetition // Growth Challenge helps growth-ready businesses prepare to scale, but if you’re just beginning your entrepreneurial journey, consider starting with our Idea Factory. This program provides the critical fundamentals needed to get your business market-ready, so you can successfully participate in the Growth Challenge and turn your ideas into impactful enterprises.
Interested in learning more? Click here to explore how you can join a supportive community of rural entrepreneurs ready to grow.
More about Jeff Erickson
Jeff leads Strategic Partnerships at Forecastr, a leading software company that helps make financial modeling easy for founders raising capital. He is the founder of The Startup Stack and Founders N’ Funders. Jeff is an active angel investor and currently serves on the advisory boards of several startup companies. Previously, Jeff was the founder and CEO of a successful consumer goods company that was ranked #138 on the Inc. 500 list of fastest growing companies. He is passionate about startups and enjoys working with founders and mentoring entrepreneurs.
For more fundraising advice from Jeff, check out Forecastr’s 10 Steps to Fundraising Success Playbook.
