Marketing your business to investors is one of the most important steps you will make. Investors are one of the easiest and most efficient ways of getting the funding, support, and even platform that you need for your business to succeed. You can technically still launch without them, but the resources, expertise, and reputation they offer will immediately make a huge difference. Learn all you need to know about how to attract investors for your business or start-up.
At the very least you owe it to yourself and your business to do your utmost to create a compelling pitch deck. This can be used for venture capitalists all the way to friends and family or even crowdfunding. It must have all your USPs, business projections, profit and loss sheet, peer competition, various statistics and other related information. It must be flexible so that it can be edited as per alternative Investment opportunities. You need to personalize your pitch as per the VC.
Read this extensive case study blog article to understand the proven top 4 key strategies so the investor / venture capitalist will fund in your business. To create such winning pitch deck you will need to follow a few very important steps and you can also contact a pitch deck consultant in this regard. These are the things that such powerful people seek before investing.
1. Make a list of who you want to invest in your start-up
You need to find your audience. This applies to crowdfunding all the way to venture capitalists. Finding those who are interested in your industry and in the specific solutions that you offer takes time, but makes a huge difference if you don’t have to explain the history, background, and need for your product to people that may not get it.
If you cannot find investors that are within your target audience then see if you can get testimonials from those who do have a use for your product. This is particularly useful if you have a very niche product idea that can completely change the workflow or results of those in a certain job or role. The investor can then see that many key figures in your field understand your product, its use, and its need.
It is always better to find an investor who is in your niche. It will stop so many conflicts that might arise in the future. For the same, you need to expand your professional network and seek help from them. One of the best thing to do is to create an impressive LinkedIn profile. It will help to convince investors about your business idea.
2. Work with the developers
You will need to work closely with the team that is bringing your vision to life to create a winning pitch deck that will help you catch the interest of investors everywhere. This is often a standard service offered by the top web development consultant agencies like Scrumlaunch.
Not only do they architect and build scalable software applications they also can help you improve your brand design, digital strategy, and of course help create your pitch deck to woo investors from all corners. It is always better to show a tangible prototype of your business model. Visual approach is far better than verbal talks. It gives them confidence that you are serious about your product and had already done the required ground work.
Be sure to test your prototype with all possible iterations and equations. It should not go wrong during your sales pitch. You must understand what attracts investors to a company and according to it, present yourself. Such tactic increase your chances to get funding for your business venture.
3. Practice your pitch
It is one of the strongest tips in the topic of how to attract investors for your business and start-up idea. Having a great pitch deck and product of your start-up business idea is great but at the end of the day you are selling yourself first, your product or business idea second. Investors need to believe in you. If you cannot be that person that sells your idea then find someone who can. A great salesperson makes a huge difference when it comes to investors. You need to time and yourself to the most accurate and short description.
Most investors will have a larger threshold for patience than your average customers, yes, but only in certain situations. If you found your way onto Dragon’s Den, for example, you won’t need to be as charismatic as if you were pitching your business over a lunch, or even in an elevator. To avoid failures, do record your speech, listen your tone, voice modulations, feelings and enhance your speech accordingly.
Do mock with your business partners and knowledbale colleagues / friends who can correct you. The more you practice, the more confident you will be. Also be ready for some quick Q&A session. The investors will ask very specific questions regarding your business model, its genuineness, market demand, future growth and related. It will be better if you can also give some figures from established firms like TIME, Forbes, Statista, FICCI (Federation of Indian Chambers of Commerce & Industry) and others. Such data will show your authenticity.
4. Diversify your investors
You will want a diverse range of investors for the best chances at success. While having angel investors or venture capitalists invest in your business is a huge opportunity they are not the only options. You can get a small business loan, can crowdfund, can receive a grant from the government or from a community organization, and so much more.
Diversifying your investors increases your chance of success, and also stabilizes your business so that you have a firm foundation to succeed from. You can also club them to get benefits of multiple mindset and business growth ideas. There is not fixed rule regarding whom to approach. It all depends on your business model and your comfort zone with various entities.
If you are doing so, make sure that you don’t approach too many. It will dilute your equity in the company. Whatever happens, it is your business and you must be on authority stack to take decisions. Too much diversity can increase internal conflicts which can lead to business failure. So, it is very risky option. Choose it wisely.
We hope that our these extensive marketing strategies of how to attract investors for your business and start-up will help you in your endeavor.