Convincing investors to pour cash into your investment plan is a humongous task. Many investors are risk takers, but nonetheless, they still look out for the security of their investment and ROI. You will need to master some smart sales tactics if you are to conquer the art of winning investors and funding your startup.
1. Be Appealing, Captivating and Creative in Your Pitch
When you consider requesting the input of investors for your ideas, you will be required to come up with a presentation for them. A presentation of your business ideas is prepared in the form of a pitch. Ensure that your pitch is a precise representation of your ideas. Tailor it to match your target market, audience as well as budget.
2. Use SMART Ideas
To make your pitch as appealing as possible, try to apply the SMART principle.
- Specific -Your ideas should be precise and clear. You should be able to stipulate how you understand it and how you plan to achieve it.
- Measurable -Your pitch should answer anticipated questions requiring figures, deadlines, and statistics.
- Achievable– You must illustrate the capability of your team to achieve the goals set in your ideas clearly.
- Relevant -Your goals should be realistic and usable.
- Time-oriented – You should be able to project the deadlines of your projects.
3. Make Your Pitch Easy to Follow
The most significant aspect that investors are expecting to discover from you is your business potential. To bring this out, you will need a great way of presenting it. In addition, set your business apart from others by illustrating what makes it feasible and more profitable.
4. Use Slides
The following structure should guide your presentation;
- 1-2 Slides to showcase the essence of your idea. In your slides, remember to highlight reasons for choosing to start your business.
- 2-3 Slides that address any issues your business might be facing. Determine what aspects of your business are failing and the ones that are prospering. Enlighten your potential investors on some of the values that guide your business undertakings and the potential marketplace.
- 2-3 Slides on your intended product. Provide a description of the product or products you intend to deal in. Trim down to the unique features which set your product apart from similar products from your competitors.
- 2-3 Slides demonstrating the go-to market strategy you plan to implement. Emphasize on the methods you believe will help you make as many sales hence achieving the set goals.
- 1-2 Slides exalting your team. It is important to understand that although investors give special and keen interest to your product and services, they also give due consideration to your professional team.
- 1-2 Slides which clearly illuminate the financial standings of your business. State the current position as well as the expected revenues and expenses.
5. Outline the Exit Strategy
As you probably know, investors are interested in quick returns on their investment. It is therefore prudent to share with them an immediate exit strategy.
Investors should not feel trapped in your long term goals. They should be made confident and comfortable if they settle for investing in your idea.
6. Ask only for What you Need
Investors are aware that some folks just want to milk money out of them. For this reason, they are keen to smell out people who come up with ideas that are of less value than what you are actually demanding. Therefore, request for the exact resources that you project will be sufficient to achieve your goals.
7. Present an Incredible Business Plan
Last but not least, never present your ideas without a well and thoroughly thought through business plan. A business plan will show the investors their expected gains and how their money is going to be used.
Getting investors to back your idea is an excellent way to promote your business. “Angel investors are some of the leading sources of seed money for many successful start-ups,” says Greenr founder and CEO Fabien. Finally, remember, investors are always looking for business ideas with a brief return-even period.