Investors will invest in your startup business when they are convinced of the fact that your venture will get multiplied in a certain span of time. So, in order to attract them towards your business, all you need to do is to excite them with business case underlying your concept.
However, your ideas are to be addressed to a large gathering, so the ideas had to be good. Therefore, while presenting your thoughts before your investors, make sure you focus on what you intend to do. How you plan to implement your ideas, how will you make money out of it and lastly, why it is only you and your team is one they should bet on.
Here are some concrete tips for the first time entrepreneurs.
1) Do the thing which you say you are going to do
Investors often get turned off by excuses. The most important task lying before you is to convince your investors that you are going to get things done no matter what the situation is. The best way to appear formidable is to actually be formidable. Investors always trust those who feel they can do a lot with little.
2) Try to sell via networking first
Social networking websites warmly welcome the new entrepreneurs for good reasons obviously. Networking allows you to pitch up your startup in a less formal way and in a more organic fashion.
3) Ask for advice, not money
Instead of cold calling the investors to invest them in your business generally come off desperate. Instead, seek out advice from investors you admire. By strategically seeking advice from the investors, you tend to build a relationship with them which increases their interests to invest in your business later on.
4) Be authentic
Avoid being superficial. One way to attract potential investors is you include them in your battle. Upfront them about your journey as for how you made from being nothing to now an entrepreneur. By this, your investors will build trust on you. Approach them with a positive attitude and attend to show your willingness to accept their criticism as well as their suggestions.
5) Pitch a return on investment
When investors trust your company to invest their amount, the ultimate thing is that they expect their profits in return. So, it is important to highlight what will they gain personally after making an investment in your company. It is actually tempting to remain focused on your business and your targets but ultimately your investors wanted to know what is in for them.
6) Do not expect a quick ‘yes’ or ‘no’
An investor may feel enthusiastic about your new venture, but it will take a long time to have an agreement in writing such as a term sheet. This is because investors try to find out how well you are selling ideas and thoughts to others. Be prepared for a series of ‘Maybe’ type responses from the investors for certain period of time. If you do not give us your proposal by then, they are likely to form a positive impression about your existence as an entrepreneur.
7) Avoid following the crowd
As we all know the famous proverb “Fortune favors the bold.” In order to attract the attention of an investor, be sure that your product solves the real problem. There are many investors who just try to reinvent the wheel. So avoid being one of them. Try going for innovative ideas which sell best at the market.