Even the best, most promising startups don’t get far without the right investors on board. However, finding great investors to approach in the first place is only part of the challenge that comes with securing funding. Convincing those investors your startup is truly worthy of their time and support is another. The following are just a few of the things investors like to see in a possible investment opportunity. Are you prepared to make the cut?
Airtight Financial Plan
Your potential investors expect to hear more than just a basic rundown of your idea when it’s time to make your pitch. They want to hear exactly how you plan to translate your idea (and their funds) into a successful business, especially in regards to finances. Before you make arrangements to start meeting with investors, take the time to craft a thorough business and financial plan that adequately takes all the details into consideration. Three to five years is a good initial time period to cover when it comes to your projections.
Preparedness for Every Possibility
Good ideas and a knack for managing money wisely are excellent starts, but you’ll want to show your investors even more if you want to truly impress them. Before they put their money down, investors like to see proof that the person whose business they’re investing in knows how to think ahead. Be prepared to show that you’ve considered a variety of different practical scenarios while drafting your business plan. If you can successfully back up each possibility with hard evidence, so much the better.
Investors who like to get involved in startups are looking to partner with people who are really on fire for their ideas, as well as completely confident in their viability. That said, don’t simply focus on presenting the facts and figures. Let your confidence in what you’re doing shine through. Show that you know exactly what niche your budding business will occupy within your industry of choice, especially going forward.
Overall, successful pitches for startups don’t simply show potential investors that the presenter has a solid idea on their hands that’s likely to deliver a great return on any initial investment. They set both the person and the idea apart from the rest of the crowd. Show your investors that you’re not just another wannabe with a half-baked idea. Prove that you’re a contender to be reckoned with on every level.