How to Present New Business Ideas to Investors

How to Present New Opportunities to Investors

Do you have a wonderful idea that just needs funds for it to begin its operations? Are you stuck there, not knowing where to get funds? Have you tried the conventional method of obtaining a loan from a bank or a friend and you got the reply that the economy did not allow them lend you the money?

Have you also tried to get investors and they seemed not be interested? Read on to find out how to present your idea to an investor in a way that would convince them to invest in your business idea.

Keep your Presentation Short

One of the most important things to remember is to keep your presentation short. Most investors do not ask for so much details of the business that they intend to invest in. They want a summary of the details.

Go straight to the point.

They want a one page summary, a two minute presentation, the description of your business idea in one sentence. The longer a presentation is, the more ambiguous it may be.

Investors want a succinct and concise presentation that encapsulates the business idea. They want to be sure that your idea would attract customers and if they cannot grasp the concept in a short time span, they are not sure that your customers would grasp the concept too.

Use Facts and not Assumptions

You have to be factual and realistic. Dazzle them with proven facts and not hypothetical data. The use of proven facts in your presentation makes your idea sound feasible and profitable thus convincing your investors.

Hypothetical facts are not convincing enough because they have not been tested and so the probability of failure is wide. Investors want proven business systems with track records of success and the use of facts in your presentation makes it a potential profitable business system. Facts enable investors to determine the future of your business idea.

Have the Relevant Details

The content of your presentation matters a lot. It must show expertise and a good understanding of how a business works. There are some specific points that your presentation must cover.

It must cover the idea, your target market, your customers, your competition, your revenue model, your financial projections and your funding needs. What is the motivation for your idea? What problem(s) does the idea intend to solve? What solution is the idea offering? Who is your target market?

Your market must be specific

The world cannot be your market. You must also state how you intend to acquire your customers and how much it would cost.

You must provide enough details as to why you are different from your competitors. You have to state your features, benefits and what you want to offer that your competition lacks. Your financial projections for the company/business idea should also be stated.

What are you projecting in revenue over the next three to five years? You must also back your projections by sharing your assumptions and giving information that your investors need in order to see that your calculations are correct.

Also explain situations that seem too have a sudden growth spurt. Your revenue model is very important. You must be specific about your products and pricing and emphasize how the market is anxiously awaiting your arrival.

Engage Competent Team Members

Investors invest in people first and ideas second. So ensure that your team has the right people on it. Whatever skill sets that your team lacks should be made known to your investors. Your funding needs should be included in your presentation.

Let your investors know how much money has already been invested in your company, by whom and the ownership percentages. Be clear as to how much you need to go to the other level. Remind them why your management team is capable of managing their investment.

Have an Excellent Business Plan

Every investor is interested in your business plan. Your business plan should be strategically prepared to meet the requirements of investors. Your business plan shows the future of your idea and they need to be convinced of its establishment and longevity.

Your business plan must cover areas such as management, customers, product/ service description, marketing plan. Sometimes, you may not have the opportunity to present your idea to investors physically. They may request for your only business plan. That is why your business plan must cover these important areas.

Be Creative in your Delivery

Engage the imagination of the investors by infusing creativity into your presentation. The presentation does not have to be filled with statistics, numbers and graphs. You have to be able to relate with your audience on a personal level through stories, real scenarios and recent events that are related to your idea.

In order to do this effectively, you have to research the investors to know what they do for a living, their hobbies, etc. Express your ideas in terms that are related to the practical business concerns of the investors because they see ideas from their point of view. They would relate to your ideas on a personal level and would accept it easily.

More Business Opportunities:

It's only fair to share...Share on FacebookShare on Google+Tweet about this on Twitter
Join 80,000+ Other Members To Access Small Scale Business Ideas and Business Plan PDF. Get Information on Franchise Startup Cost, Price and Fee. Start a Business Today!

How Much Does it Cost to Start? Find out!

Enter your email address:

Leave a Reply

Your email address will not be published. Required fields are marked *

thirteen − 3 =

PracticalBusinessIdeas.com © 2011 - 2017 | All Rights Reserved.
error: Content is protected !!