The pandemic has shifted the world to a new perspective. Many have left 9-5 jobs and have invested their time in startup businesses. The local businesses have grown exceptionally. However, one thing that many entrepreneurs need is green bills. Reaching out to investors for funding is not less than an Olympic marathon.
You will be asked questions like, what makes you different from 20 different proposals the investor received that day? And it will further to more questions such as your legal formations, fiscal projections, company's early traction & future valuation, etc. How ready are you to answer these without a fumble?
Here are some of the ways to impress your investor with your company's precise information,
It's often than not that budding entrepreneurs just go with any biggie who is ready to invest in their business. It might help you cover your costs and build a volume temporarily. But it won't fetch the long term results that you're looking for.
You need to create a niche for your business and find the appropriate investor that matches the business's visions and missions. You can contact your ideal investor through email search tools. GetEmail.io helps you answer the question, "how to find someone's email addresses"? It also comes with a chrome extension to a Linkedin account, so accessing the professional's email address becomes easy.
Your product does serve the needs of the people. It solves their issues and satisfies their wants. It isn't all you need to tell your investors. They need to know your company's value proposition. A briefing about an immediate plan of action for wealth creation.
How easily can your company scale up? What is the investor's profit for taking a risk? What difference does it make to your investors and stakeholders for investing in your product? Answer all these in professional and simple terms. An easy read of this document can help you expedite the process.
One thing that the investor is actually interested in is your business numbers. How well have you been doing with the limited resources and, if you have a team set in place already then, how are they bringing you the numbers?
All the graphs and numbers will help them calculate your sustainability in future. Explain to them about the target audience and how you wish to market for a better reach. Investors are interested to know that their money will be bettering with the association over time.
Thinking that your idea is the next big thing without any evaluation is like writing on sand. At the seashore! Having an optimistic approach is good. However, you need to know what your strengths and weaknesses are.
The valuation of the business is your company's finances. It's the return on investment plans, investments and cash flows. Where would you invest more in your company? Is it the marketing and sales or improving the product? If you can convey the same to the investors, you can be assured that investors will be interested.