Investors are fickle because they don’t want to lose their money or time. Unless your business can convince them that investing in your company is worth the risk, they will let their money work somewhere else.
Practice Your Pitch
Just because you think you have a great idea doesn’t mean others will. Successful investors are skeptical of new projects, and are always looking for reasons to dismiss them. Imagining their criticisms means you can counter them during your pitch.
But What is a Pitch?
In business terms, it means a presentation featuring a business plan for investors.
Practicing means you can predict questions and perfect your body language and delivery.
Create Great Examples
Investors want to see your product or service in action; most won’t bet on unknowns! How much preparation you need for a successful pitch depends on your investors personalities and how much investment you are asking for.
Potential investors will tell you what they need to see, but creating a finished product and testing it on the market means you can talk about real numbers. While you are creating a game plan for spending your capital, look at your competitors. Discussing their price points, marketing strategies, and target markets with your investors adds another layer of confidence and competence to your pitch.
Of course, examples also include props and prototypes. Rather than explaining how your product solves a problem, show your investors. You could showcase posters, hand outs, and slide presentations in your pitch but hands-on experiences are more rewarding and convincing than presentations alone.
If you are selling softwares, for example, invite investors to try your competitors’ products and your prototype. Guide them through a few exercises or script your own, making sure they can see your product solving a problem in real time.
Businesses only need one investor, but this doesn’t mean you should undervalue business connections; you never know where your next investment will come from!
Some reclusive businesses thrive because of their niche, but many companies fall because they can’t reach new customers and investors. If befriending new people isn’t a priority, consider making it one. Markets change quickly and every new friend is one more opportunity to improve your company’s stability.
If your team doesn’t have anyone that makes friends easily, consider hiring a few sociable team members.