Any great business idea or concept needs funding in order to be made into a reality. Ideas made practical require the best resources, the best technology, and the best mentorship because most startups are a gamble, and most of them fail. However, they fail not because of lack of trying, but because they are flawed in their execution and marketing strategy.
So in order to succeed, you need win over investors. In order to win over investors, you need to bring your solid A-game and be able to convince them of your vision. It’s not all fun and games and it requires a lot of tiresome and often repetitive processes.
It’s up to you to hook up those investors to your startup bandwagon. It’s up to you to go to the meetings and pour your heart, soul, and passion out in front of people who ultimately decide which businesses thrive and which of them languish.
Even though 90% of startups ultimately fizzle out, you must believe that yours will be the one to break into the remaining 10% and be able to convince investors of the same. With these three tips, you can go into your pitch knowing that you have what it takes to get funded and win over your investors.
Be Enthusiastic, Excited, & Clear
Sometimes, in our excitement, we lose sight of what it is that makes our ideas simple, elegant, and attrative in their scope.
So when starting your business, it’s best to keep in mind that you’re taking a monumental risk that you need to convince millions of people of the efficacy of your idea. The simpler you are, the easier it will be for people to understand what it is that you’re hoping to accomplish.
But, there’s no need to be boring and dull about it, either. Demonstrating passion for your craft can also convey the right feelings to investors about how serious you are about the idea and how invested you are in seeing it through to the end.
It’s all about exhibiting the right kind of confidence. Cockiness turns off investors unless you have a track record in the industry to back you up. Another pitfall about being arrogant is that it makes you unreceptive to other ideas that can potentially help you enhance your original idea in the first place.
So cheer for your idea, but not to the detriment of listening to others. And above all else, understand that clarity and focus are the keys to selling your idea to a boardroom of investors. You need to convince them that your idea is better than what currently exists in the market, and that’s how you can get their attention—and their paychecks.
Show Them Results
You know what works with investors? Showing them that your idea can and will result in a bigger bank balance for everyone involved.
This sort of positive, self-interest focused discussion can do more to latch an army of investors on to you than using old fashioned scare tactics.
Answer their questions, their concerns, study the competition, and play up your strengths. I do this a lot with my current marketing startup. These are all tried and tested negotiation tactics that you may want to acquaint yourself with.
Be Realistic About Funding
Take what you can get and make the most of it. If you’ve got a number investors lined up, then it might do you good to lay out a viable business model for all parties involved.
This can put investors at ease and with a better idea about where you will be in a couple of years. Investors are interested in putting their money into people and ideas that are both passionate and forward thinking. They know that if an entrepreneur is both driven by lofty goals, but has a grounded sense of self and business, they are likely to flourish. Thus, it’s vital to you and your company to expect to generate some interest, but to be realistic about your numbers. Don’t drive investors away with lofty, unrealistic valuations and absurd funding requests.
Winning over investors and their investments is no easy task. Nobody wants to just throw money out of the window, which is why it’s important to understand what investors are looking for and how you can woo them with you brand or business idea. The best way to do that is to demonstrate passion, prove to them that you’re in it till the end, be clear, and be realistic in your expectations. If you follow these three simple tips, there’s no doubt that you’ll get the funding you’re looking for, and maybe even a bit