There are all manner of businesses, small and startup alike, that deserve funding. But there’s only so much money to go around and a lesser number of individuals willing to serve as an angel investor to get a business and its operations really flowing. As success is never guaranteed and a return on investment is never perfectly predictable, these investors will take time to ensure they understand exactly where their money is going from day one. That much is easy to grasp.
What’s more difficult to consider is just how your own business should be communicating with such investors. Sure, you might have an adequate business plan and prospectus, but what about hammering home the most essential information to turn investor interest into passion? Well, we can’t tell you exactly what that specific investor is looking for, but we can certainly tell you what many of them enjoy hearing:
Explain What Makes You Unique
Every business has its own story, and while you believe in it, you have to sell it to an investor who might not have the emotional connection you have. Explain your background, the motivation you have, the problem you solve, and the market you’ve researched for it. Then explain what makes you unique and better than others, by using competition as examples. Keep it simple and focused. Remember, investors are inundated with pitches; yours needs to resonate with clarity and conviction.
Show How You Can Grow Big
Investors are on the lookout for potential “unicorns,” businesses that can scale rapidly and deliver substantial returns to them as quickly and foundationally as possible. You can demonstrate your understanding of the market dynamics and how your business is positioned to capitalize on them with a quick plan for how you’l scale, when and why. Make sure to provide data-driven projections and scenarios that emphasize all claims you make. It’s okay if you don’t promise the world now, but you do need to showcase your realistic framing of what your business can do.
Introduce Your Reliable Team
Remember that a business is nothing without a team, even if it’s very small right now. Introduce your investors to your business partner or any staff you have —these are the people who will drive the business forward. Detail their expertise, experience, and the unique skills they bring to the table, it will help your investor feel like the company is in good hands. Investors invest in people as much as they do in ideas, remember that.
Showcase Actionable Steps
Keep a clean, simple roadmap that can be understood easily. Investors want to see a well-thought-out plan with clear, actionable steps that lead to success, but they don’t want to read a Tolstoy novel about your potential. Break down your strategy into phases, each with its own goals and metrics for success. That might be as simple as getting your online payment gateway up within a certain amount of weeks, or how you’ll begin your first promotional drive. Date this in weeks, and you’ll showcase your motivation to get going.
While this advice might not guarantee you an investment, it will make that outcome much more likely. We wish you success in your aims.
* Contributed Content – 4 Strategies Angel Investors Love To Hear
Wishing you a great week!
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