Most entrepreneurs want maximum benefits from their companies. This is the reason why they go out to look for investors such as csb group yachting division who can catapult them to the next level of their business.On the other hand, pleasing an investor is difficult. This is because an investor or an angel will be looking for an avenue that they can get lots of profit within a very short time. Therefore, before you walk into the pitching room, you have to ensure that you prepare accordingly. Also, if your pitch is not up to par, the investor can step out of your idea just like that. Therefore, you should take that one opportunity that you have with the potential investor carefully.
Tips you need to use to earn favor from an investor.
How do you convince the investor to buy your idea? Well, get to grips with the following tips;
1. Be creative in your pitch
Many people come to investors with ideas. In fact, an investor will meet various people in search of the best investing option. Therefore, you have to be unique. You need to create a great pitch that will make them want to know more about your services. Most investors do not want to spend a lot of time reading the entire copy of your pitch. Thus, ensure that you create the best executive summary in a way that will create more suspense.
A person who knows his market well will always be more appealing to the investors. Therefore, in your pitch, remember to put your details straightforwardly. In addition, remember to make your pitch as short and precise. Besides that, be confident in how you deliver the pitch.
2. Ask for Enough Resources for what you need
Investors are wealthy people. Most rich people will come across individuals who want to milk money out of their pockets. It is wise to ask for exactly the amount you need. An investor will want to know how well you spent every coin and will always hold you accountable for this.
Do not be tempted to ask for more money than you need during that business phase. This creates authenticity.
3. Ensure that you already have enough customers and their reviews
Give them a report of clients who have previously used your product or service. If you do not have some reviews/ testimonials, then you have to wait until you have created some trust with some of your customers before you look for an investor. Investors do not want to invest on something that will not have any direction.
4. Explain how you will Use the Money to Bring in More Money
If your idea does not have enough meat, then none of the investors will want to risk their money. By meat, I mean that they need to know how their money will return and how much in profits they will make. They also want to know how long it will take to make that amount of money.
5. Look for a Potential Co-Founder
One of the challenges that most startups face is that they lack good co-founders who can help propel your business’s vision to the next level. Pick someone who has excellent skills in handling the business processes as some of the investors look at the people who you work with.
6. Make a clear Business Plan
Most entrepreneurs disregard the importance of a business plan. In most cases, you will find them jumping sections that do not seem important to them. This is being ignorant. You should ensure that you provide an explanation on every part of your business plan. This will make you look competent to your potential investor.
7. Good Exit Strategy
Investors will not come to pitch a permanent tent in your business. They will leave with the profits at the very end. For instance, during pitching, formulate the total amount of returns that they will get at the end and how they will get back their capital. Also, a good exit strategy determines how long they will be in the business and how they will also leave the business.
Convincing the investor is similar to convincing your interviewer when looking for a job. Therefore, remember to dress well. Also, carry relevant documents that you think they will ultimately need.