Pretty much all startups need some level of investment. And that means you need to sell your idea to investors. You need to show them that the idea is viable, that you are prepared to scale the business, and that you have the right people behind you. Here are six tips to impress investors.
How to Attract Investors?
Have a detailed business plan prepared
Investors don’t make decisions lightly. You can’t just tell them your idea in five minutes and expect them to invest millions in the business. Instead, you need to answer all of their questions in a detailed business plan. The more detailed it is, the fewer questions they will need to ask. You really need to think of everything in your business plan, from health insurance quotes for employees to the costs of office premises when you scale the business. If you aren’t experienced in preparing business plans, it could be worth hiring someone to help you with it. After all, this is the bible for investors.
Focus on previous results and achievements
Investors are going to need to see some track record of your results and achievements. This could be anything from previous work experience to the last year’s books. The point is to back up the claim that you are capable of making this business a success. It’s good to show forecasted figures and future plans but investors also need to see what has come before.
Elevator pitches are always effective
It’s absolutely crucial that you can explain your startup idea in less than five minutes. This is called the elevator pitch. It should be well prepared, concise, and full of detail. This way, you are always ready to sell your idea (even when you’re not expecting it). For example, if a friend introduces you to a potential angel investor at a party, you need to be ready to sell it.
Make a short pitch deck
The pitch deck is the presentation version of your business plan. This provides the investor with visual aids when you’re talking them through an idea. However, many startups get this part wrong by making the pitch deck too lengthy. You have already presented them with the meaty version of the business plan. The pitch deck is a short version that summarizes the business plan. If it’s too long, investors won’t stay interested.
Include branding in the presentation
Branding is important for any investor to see. It allows them to visualize the future of the business after they have invested. Presenting a pitch deck with no branding is a big mistake. You should work with a branding expert before you approach investors.
Addressing possible issues
Before you pitch to investors, you need to identify any possible issues that might come up. This process will require some soul-searching and an honest conversation with your team. If there is a weakness, it’s better to know about it and have an idea of how to fix it. The last thing you want in your pitch meeting is to be surprised by a question.