Money plays an important role in the growth of any business regardless of its type. Especially in the case of startups, the investor is the one gives a twist to the storyline of the startup stories. Not every startup can win without the help of the right investors. So, if you are an entrepreneur looking for a lucrative opportunity, get to know the 7 essential tips that can help you pitch on a perfect investor for your business.
1. Find what motivates your investor
Every one of us are passionate about the things that excite us and ultimately transform it into a business. But It is also very crucial to give a reason to your investors. And, this reason should answer the question why they should invest in your business. So, if you want to impress the investor, you got to find a reason that motivates him to trust in your business and invest in it. Building a valuable partnership is one of the best ways to secure your business for the long term.
2. Develop a financial model
Your business plan should include its financial model that holds all the strategies to reach the goal. Some of the experienced entrepreneurs and investors say that they expect a financial model of business to be preplanned for at least three financial years.
Ensure that your plan drills down to a detailed view of expenses, monthly plan, and money-making strategies.
3. Show them your roadmap to success
If you are planning something strategically, you should definitely end up with a road map to success. A strategic plan is incomplete without the roadmap. This is an indication that the strategies are not solidly framed to meet the expectations. It is very obvious that investors expect a set of key milestones that can show off your confidence in your business. Identify the measurable goals that can promise the execution of bigger plans.
4. Tell them an inspiring story
Storytelling is an encapsulating way to attract people and drive them whole-heartedly towards your business. Don’t tell them the story about the current status of your company. Instead, tell them how can they contribute to the future value of the company. Let them hear the future goal that can take the business to its next higher level. Make your story tightly fitted with exciting plot twists and a moving conclusion.
5. Encapsulate the investor with the presentation
It takes both art and science to present a solid presentation. Most people differentiate it into two sides. One is everything that you say and the other one is pitch deck that is the text and visualizations. Make sure that you get both of these right before you pitch. The visualizations should make your job effortless by conveying the message correctly with ease.
6. Eloquent your elevator pitch
Design an executive summary that should let you define your business in 2 lines. It means that you should be able to describe your business within 30s to 2 minutes as an elevator usually takes. It’s not that easy as you should explain what your company does, your plans to make it financially stable and the solutions or future goals in 2 or 3 lines.
7. Practice for a FAQ session
The investors usually ask a number of questions to test your work and strategy. Make sure that you can answer any possible question that an investor can ask. You can also try a mock FAQ session with many different types of audiences. This ensures that you are aware of any type of question or difficulty that may arise. If you don’t have an answer, ask the person to send you a mail. It is a better way if you don’t have an answer. Meanwhile, you can research, find a solution and revert back to the questioner.
To keep it simple, think the way that investors do. And everything falls in place. Clearly, that is how you can perfectly pitch to investors.
Read more from CEO diaries 5 Productivity Tips To Learn From The Top CEO’s of The World and Worlds Top 10 Most Powerful CEOs of 2019.
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