Investors come in handy for all business ventures, especially the financial banking bit. Before you get down to selling your product or service to your potential customers, you’re going to have to sell your idea to an investor. Here’s how to win over your investors:
You’re Going to Want to Seem Excited, But Also Clear
No one ever said becoming an entrepreneur or starting a business themselves wasn’t a monumental risk. When an investor asks you why you’re doing what you’re doing, you still want to seem excited (no matter how scared you might really be). A good answer will encompass your passion for the industry you’re entering and reiterate confidence in your idea being a success in the market — this belief will subsequently transfer into your potential investors.
But don’t sugar-coat what you can’t achieve — you must highlight the clarity of the product or service to keep the trust (between you and your investors) from tumbling down. Give them an informed understanding of the problem you are trying to fix with your approach.
Don’t Scare Your Investors
You want your investors to remain greedy for all the profit they’re going to generate through this venture, but you’re also going to have to watch out for the fear. An investor being scared is a powerful deterrent. As much as you excite your investors, you’re going to have to minimize the fear for them with possibilities.
Prior to a meeting with your investors, you’re going to want to anticipate their questions adequately regarding prime risks. Be prepared for: why do you think you will succeed when other entrepreneurs have failed in the past, or how do you plan on combating the risks of your venture. Never answer an investor with “I’m not too sure about this aspect of my business, I’ll get back to you on this later,” as it diminishes credibility.
Learn to describe what differentiates you from your competitors who are already functioning in the market. Paint a picture so great, you spur the investor’s greed to the max!
Have a Realistic Approach to Money Matters
If your approach is flexible, pricing shouldn’t become an issue. When you require money, you take just about any amount you are getting — but in a parallel universe, your idea could also interest multiple investors. Your venture should be sliced into stages, clearly defining the capital you need to achieve the next bit. Each stage must also highlight what the investor can expect in terms of return on investment. Your investor would want to know why they’re paying for what they’re paying, and why they’re accountable for that specific amount. You want to know just how big the market is and how grateful you are for this opportunity to enter the market.
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