In this article, we are going to figure out 10 things that investors should know about your startup
One of the major problems
One of the major problems that most startups face is capital, but on the brighter side, there are many channels through which they can acquire it. they could include borrowing from friends and family, taking loans from Banks and micro-finance lenders, and even getting investors. All of the methods that we have just mentioned could include some challenges. In this article, we are going to figure out 10 things that investors should know about your startup. These are very important factors since they could determine whether the investors decide to invest in your company or not. It is important to show the investors that your company is worth investing their money in and will give them good returns on their investments.
Before reaching out to investors
Before reaching out to investors, you should come up with a strong, compelling pitch that will make them opt to invest in your startup instead of opting to invest in the next one. One thing that is clear in the business world today is competition for investors. These investors will tend to go for the very best offers, and in this instance, your startup needs to be in that group. Take a look at some of the things that they need to know below.
Investors probably have many investment proposals
Keep your startup pitch simple
Investors probably have many investment proposals and a complicated pitch that is hard to understand isn’t a good idea at all. They want to understand everything quickly so that they can make their decisions. A good startup pitch should be simple and clear, outlining the business idea and how it can benefit the investors. Let them know what the business is solving and how that is related to your purpose. Let them know how the business will generate revenue, and stick to the points instead of going too much into details.
Manage your timing well
You don’t have all day to present the startup pitch, which is the reason why you should maximize on the time you’re given. A pitch that is too long can get the investors frustrated or bored, and you should stay within the allotted time, keeping the right pace so that you won’t be rushed towards the end. The presentation shouldn’t be rushed, and it should engage the audience without looking like you’re feeding them with too many facts. Always spare some time for questions, usually at the end of the presentation.
Tell your startup story
What is the story behind your business idea? Most people think that they should only give the investors the sales pitches, but one of the best ways to make the sales pitch more interesting and memorable is to tell the story behind your idea. If the investors want hard information, they can always ask for it. while telling the story, there are ways of making it more interesting such as using expressions and animations, telling jokes at the right time, and creating something memorable and unique to your startup.
Don’t let the story distract you from your pitch to the investors, and that means respecting their time. Emphasize on the core elements of the business by communicating them clearly while avoiding irrelevant.
Convey the unique value of your startup’s product or service
One thing that investors will look for before committing their finances is how unique or different your products or services are from the rest on the market. Solving the problem isn’t enough because there are many other businesses doing the same thing. The main issue here is how you are solving problems in a different manner that other businesses can’t match. This should include things like patents so that your competitors don’t copy you.
Let potential investors experience your product first-hand
One of the best ways of showing investors what your products or services are about is by letting them experience them first hand. The best way is by letting them actually handle the products, or experience the services. Demos are a great way to showcase your products or services, and they have a greater impact on the investors as compared to word of mouth.
Be clear on who your target audience is and why
The investors will be investing in the product, and that is the reason why they will be very interested in the people that will be using those products. Tell your investors who your target market is and why your products are in demand with them. Demographic data and psychographics can be used to show the investors your target market or audience and how it will be profitable to the business.
Know your numbers
Figures always interest investors. This includes how much money you’re trying to raise for the startup, the time it will take to start realizing profits, the current overheads. It is important to have the figures that will make the investors better understand where you’re going although at times too many figures can make the pitch move away from the main focus.
Be prepared to support any claims
You should always be ready to prove what you’re talking about, whether it is about the target customers, financial projections, marketing strategy, or anything else. This will show the investors how informed you are, making it easier for them to trust that you’ll be able to give them a return on interest.
Be passionate and enthusiastic about your startup opportunity
You can package your startup in the best way possible, but if you lack passion and enthusiasm, chances are that it won’t really interest the investors. The investors know that when you are passionate about the startup, you will be able to overcome all the challenges you’ll face along the way, success your only goal.
Getting investors for your startup can be a tricky affair if you aren’t prepared for it. You need to know the tactics you’ll use to gain their confidence, talk with Baltmodus team about your current status and fundraising needs.