Whether it is three-months from now or two years down the line, you as an entrepreneur will be forced to answer this one simple question: Are you ready to present your business idea to a group of wealthy investors?
While discussing your company, your company’s finances, and your company’s overall service and products may be easy with a friend or a family member, pitching your idea to a group of investors is a completely different story. At times, it can be incredibly stressful to analyze and internalize all of this data and information. But if you are looking for your company to grow and develop in the most beneficial way, then it is absolutely vital that you prepare yourself and your business idea before you enter into that meeting.
For many investors, they want to first and foremost meet the entrepreneur rather than the business plan. For them, they see this as a relationship. They want to make sure that you are the best and most qualified individual who can establish and execute the product and service to the general public. Once that presence is established, the next is solidifying that your business concept is lucrative and fruitful for their financial portfolio.
In many pitches, many young entrepreneurs make countless mistakes of trying to seem bigger than what they are. For investors, they do not care how unique you are or that you are the next Apple Inc. who is going to change the world. Instead, they want to know the business model, the product, how it is marketable, and the level of success so far.
To do this effectively, start out by discussing the problem. When pitching your idea, you want to make it crystal clear to your investors that there is a want and need for your product (or services). For many people, this can be easily sold by discussing the problem at hand. By framing your pitch and highlighting the flaws people usually see during their day-to-day, you will be able to prove to your investors the overall value your product can have for the general public. To enhance this, showcase various scenarios and situations involving this problem and how it can be simply solved through your company. This type of ‘problem-solution’ pitch will allow your product, and the need for it, to stand out for every single investor.
Now, as much as you want to do much of the talking, you always want to engage and involve the crowd around you. This plays both a role of what they know and how you can further educate them about your product. To do this, ask them various questions, even questions about said-problem. Their answers can lead to those much-needed light bulb moments, especially when you introduce your product and services of your company.
Outside of questions and background history of your company, the one big game changer between securing that financial investment or walking away with nothing is making sure you know the numbers of the business. When it comes to investors, they want to make sure they are partnering with a good idea. While there is no such thing as a sure thing, alleviating their concerns by highlighting these numbers of expenses, revenue, and overall profit can benefit your pitch even more. In addition, make sure you can speak loudly to what their investment can do for your company. Many investors want to know that they are not just making a profit, but they are aiding you to your personal and professional goals. Providing this information can give them a clear sight to the overall direction that your company is moving into the future.