Smart Ways Of How To Satisfy Investor Needs
As an entrepreneur, there comes a time when you need to pump extra money into your business. The most common source of additional capital is money from the investors. The process of convincing investors to fund your business similar to a job seeker being interviewed. You have to fully convince them why they should put their hard-earned cash into the business. Walking out of an investment pitch empty-handed can be very frustrating. Want to impress the investors? Here are the smart ways of how to satisfy the investor needs.
Present clear margins
Investors are willing to invest into your business because of one core reason; they want to make money. No matter how good your business sounds or how unique your idea is, if it can't make any significant money, then you will have to rethink about pitching to the investors. The numbers and the margins should look promising. Convince them that your business can make some amazing profits and they will be able to get back their investment within a short period. Even if you have the numbers, present them in a professional way so as to fully convince the investors.
Show your growth potential
Investors are not going to put their money into a hyped business idea that will be dead in the next few months. You should at least show them that your business long lasting and will survive for the next several years. Convince them that the value of your startup will go up with time rather than diminish. Do not forget about the customer base. Convince them that the number of your customers will keep going up and this will result in an increase in the revenue.
Show the problem that you are trying to solve
A good business should use its product or service to solve a problem that customers are facing. The problem can be affecting many people or just a fraction of the population, but at least you should show why you are in the best position to solve it and not any other business. Even in providing the unique solution, the investors should be able to see the business aspect of it. It should not sound like you are providing humanitarian assistance, but instead, you should show that you can make money out of it.
Have a good business model
A good business model is what can make that stubborn investor to put money into your business. The model should be understood. Complex business models scare away potential investors. Convince the investors that your business model is flexible and scalable. It should show transparency in the business and should give room for growth of the business.
Reveal your unique side
In case you are in a very competitive business environment, you should show the investors your unique side. Prove to them that you are very different from you competitors and why your business will survive despite the cut-throat competition. Have you copyrighted your product or do you have patents for the products? It should be hard for other people such as competitors to copy your business model.
Show them that you have the best team
Investors do not only invest in the business, but they also invest in people. As an entrepreneur, it's your responsibility to show the investor that you have the best team that can take the business to the next stage. Start with yourself by telling them why you have the knowledge and skills to run the business. Convince them that you have the best team that is not only talented but also passionate about what they do.
In your quest to look for investment, you will meet different types of investors. How you make your presentation will have an impact on your pitch. Keep these points in mind and you will be able to satisfy any investor.
written by: Bclique Staff writer
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