You want to convince investors to take a risk on you and invest. They are capable of investing, but they also want to be sure that their investment will go a long way. If you can provide them with enough reasons to gamble their money on you, it would be great. The said investment can go a long way if used well. These are some crucial tips to make these investors realize that you deserve their investment.
You might be too busy preparing what you will say and you forget to prepare yourself. In pitching the business idea, you are also selling yourself. These investors will try to gauge you as a leader and how well you are in presenting the idea. Therefore, you need to practice your public speaking skills. You also need to find ways to let go of your nervousness. Make these investors see that you are in command. It is a good way of sending a message that you know what you are doing.
Show how they will get their investment back
You can talk in details about a lot of things during the presentation, but investors only want to hear how you plan to return their investment and when. You need to provide a roadmap that allows them to see what you will do to capture the market and earn profits. Unless they see a clear path that lets them take their investment back, they wont be convinced to invest.
Define your long-term goal
You might still be on the initial stages of your business, but you need to have a long-term plan. Do you intend to sell the business once it becomes popular? Do you plan to go public? Are you going to open it up for franchise? Investors love seeing entrepreneurs who are ambitious and have plans on how to grow their money.
Explain your plan to compete
You will definitely face stiff challenges from existing competitors or future businesses that are related with what you offer. Investors want to know that you can take them on and you wont fall behind. Tell them how you plan to have a bite of the market, and why people will choose you over other existing businesses.
Throughout your presentation, you need to show that you are optimistic of the plan and what could happen along the way. You need to present your ideas and respond to questions positively. Yes, you dont know what lies ahead, but there is no harm in projecting confidence. If you cant even feel confident about your business now, how do you expect these investors to feel the other way?
It takes time to convince these investors to believe in you. They will most likely reject your ideas and this could happen many times. Despite that, you need to remain tough and continue fighting for the ideas that you believe in.
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2nd image from https://www.entrepreneur.com/article/292475