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For a startup business, funding is the essential part to speed up the business in today’s cut throat market. If you have any business idea to start up a business, you need to make a robust strategy for getting sufficient funds for your business. Nowadays there are different resources through which you can raise funds for your startup business. If we discuss on fundraising for your business, potential investors or angel investors are the best way to meet your funding needs.
Below mentioned are some important things that help to get investors:
Story: Begin your pitch with a compelling story. This will help to engage your audience during your presentation. At the end of it your story should address the problem you are solving in the market place. Also during the presentation it is very important to highlight the USP of your idea which will push the investors to invest in your venture. This is your opportunity to blow your own trumpet !! & impress the investors with what you & your team have done till date.
Competitors: A very important part of your pitch is to highlight the competitors of your field & to prove yourself in front of your investors that how you are better than your competitors. The best way is to present the thing in the form of a matrix.
Be very Specific about the revenue model as investors are very much interested in “How will you make money” so do explain the things very specifically and emphasize on how the market is awaiting the arrival of your product.
Investors prefer impartiality ownership: Investors should have a preference to invest their capital for a percentage of business. Usually an investor follows all legal measures to reduce the risks to entrepreneurs & the investors.
Should have a potential team to deliver innovative ideas: If you have a team of brilliant people having excellent business ideas, you can present your business in an effective manner and can easily attract investors to raise funds for your startup business.
Transparency in business transactions: While dealing with any investor, you should keep all the business transactions very transparent/documented since a small gap/confusion can create an obstacle for you in future.
Show the possibilities of growth in your business: Investors always look for business having huge potential of future growth so prove that your business model has a wide scope of growth and will deliver huge profits in future.
Also there are some mistakes which the startups should avoid when they are pitching for the investor for their business
- Don’t make your pitch too lengthy nor it should be too short.
- Always highlight how big the opportunity is.
- Don’t show any uninteresting or unrealistic projection.
- Having more than 20 slides in your presentation.
- Not doing research about the investor & his portfolio
- Not being able to explain your goal properly.
After all it is always said that Chase the Vision not the Money & Money will end up following you.