Are you trying to find funding for your startup? Maybe you need money to cover the costs of a new product launch or expansion? Whatever the case is, finding an investor is a practical way to get what you need. An investor is a person or financial institution with access to large sums of cash to put into businesses for various needs. As investing in any business comes with risks, hopeful entrepreneurs must work hard to prove their worthiness.
If you’ve ever watched the hit television series Shark Tank, you have some idea of what goes into getting investors to fund your business. If your presentation and supporting research aren’t solid, chances are you’re going to get rejected. Fortunately, there are some things you can do to improve your chances.
Pitch It Out Of The Park
The pitch is your opportunity to sell your business to investment firms like TCG. Your goal is to make investors feel as passionate about your brand as you do. Your pitch must encompass a backstory, the demand for your product, how it solves a problem, and most importantly, how you will make money.
When planning your pitch, you want to include creativity, visuals, and examples to provide investors with a tangible, up-close experience with your product or service. As you rehearse your pitch, don’t forget to ensure you remember key points, make eye contact, show confidence, and add personality.
Back It Up With Finances
Once you’ve drawn your audience in, the next step is to share how they’re going to benefit from investing with your business. That’s where your finances come into play. You need to have detailed financial data that shows the business valuation, forecasts, and projections. Investors need to know what your company or idea is worth today, what it could be worth down the line, and how much revenue you can generate over time.
Organize Your Business Plan
Your business plan serves as the statistical, fact-based, tangible evidence to support the idea that your company is viable. It must be accurate and organized to provide a good impression for the investors. A well-drafted business plan will include an executive summary, company goal, and mission statement. It should also have all financial aspects ranging from expenses and revenue to assets and liabilities. To increase your chances of getting a yes, it may be best to allow a professional to review or draft your business plan.
Know Your Target Consumer
Whether you’re trying to get startup funds or money for a new product launch, you must know your target consumer. You must answer questions like who your target market is, why there’s a demand for your product, and how you plan to reach them. Fortunately, there is no shortage of tools and resources to help you accomplish this task.
You can create surveys and polls, analyze customer reviews, implement data analytical tools, acquire publicly available data, and more to get as detailed as possible about the people you intend (or currently) sell to.
Take A Bow
Every business has a life cycle. As an entrepreneur, it is your job to plan for the future. Investors what to hear your exit strategy. Are you going to sell the business? Do you intend to hand it down to someone? Should the market start to decline, how will you close the company with the least risks? Take the time to prepare an answer for these questions to present to the investors. It shows that you’re realistic and prepared for whatever the future holds.
Trying to convince someone to give you hundreds of thousands of dollars to fund a business, expansion, or product is challenging. Money does not come easy, and investors have to consider the risks. As such, entrepreneurs must ensure that they’ve dotted their eyes and crossed their tees. By working on your pitch, backing it up with financial data, providing an organized business plan, doing extensive market research, and having a solid exit strategy, you put yourself one step closer to a yes.