Do you have a million-pound business idea that has the potential to become the next great thing? Or, you have a solution that can fill a gap seen by no one else? Well, it is excellent to have ground-breaking ideas at your disposal, but it results in nothing if you lack necessary financial resources for its execution.
That’s where investors come into play. You can part away with a part of your business to a like-minded and financially resourceful investor. It’s a perfect match- your idea/ skills and investor’s finances.
Therefore, to help the budding entrepreneur in you, we have prepared an essential checklist of the things to consider before you pitch your business idea impactfully to the potential investors.
How to prepare yourself and your idea?
Investors are usually savvy individuals; most have already seen many pitches and read many business plans. They like to know what people they are investing in, what idea they are investing and finally the detailed plans and projections. Keep handy details about your Unique Selling Points (USPs), market research, comprehensive execution strategy, financial projections, business plans, profitability, revenue generation models, market outreach activities, exit strategy, etc. Remember that most investors are shrewd businessmen/ women and would not think twice before grilling you thoroughly to understand the viability of your idea.
The learning curve is steep if you are new to entrepreneurship, but it is not impossible. In this digital age, every resource that you need to prepare a winning pitch is already available out there. The formulation and planning have to be proper, and the process of approach needs to be factual as well as inspiring. As an entrepreneur, you need to believe in your idea and, this must adequately reflect in your pitch.
Now, let us explore the various steps that you need to take to pitch your business idea to investors correctly.
1. It all starts with You
Remember that your business idea is not about your idea only but also about the mind behind it. So, you and your team also have to prepare so that you can address investor concerns effectively. Studies show that most investors look for a great team behind a strong idea and even avoid investing in good ideas that have a weak team. So, prepare yourself thoughtfully and ensure that you can help your concept consistently from its conception to growth.
2. Research about your investor/ investors
Getting the right investors who align with your business goals is often tough. However, with the proper research, you can reach out to investors who can be beneficial to your idea not only financially but also in other ways. Understand factors like how well your investor understands the market and the industry that you are trying to get in. For example, a technically unsound investor will never get how you’re trying to be the next Google or Apple. Similarly, a tech investor will not understand your ground-breaking idea in agriculture (unless it is tech-agri). So, do your research well to chalk out the right investors to approach.
3. The art of the pitch deck
A pitch deck is generally a set of slides that entrepreneurs prepare to give a clear picture of their vision and idea. It consists of crucial details like market research reports, SWOT (Strength, Weakness, Opportunity, Threat) analysis, PESTL (Political, Economical, Social, Technological and Legal) analysis, financial projections, information about core team members, a comparative analysis of the business’s competitors, etc. Your pitch deck acts as a visual representation of your idea backed by data and facts. The better your pitch deck is, the better your investors’ interest will be.
4. Build a proof of concept
A proof of concept is a physical representation of your idea also sometimes known as a Minimum Viable Product (MVP). It can help you to create a visual presentation of your plan. You can build your proof of concept in a variety of ways. Even a set of cardboard slide showing the working of your idea works. The end goal is to make the investors understand the viability and workability of your idea. If you don’t have in-house team of developers, then it can be outsourced. Do you your homework and give your reasons enough reasons to invest and demonstrate that you are a doer, have a business acumen required to make it happen.
5. Build a story around your idea
Everyone likes a good backstory that has helped to give birth to an idea. Remember why you are looking to start in the first place, what inspired you to strive for its success. Craft it into a story that you can tell to your peers and investors and make your idea relatable to them in the process.
With this checklist, you can now prepare yourself thoroughly before you pitch your idea to the investors. To make your proposition seem viable to others, you need to believe in it first. If you don’t, then work on it even more so that you start to feel in its success. Remember that the investors will leave no stone unturned to get the reality, so making the right impression is fundamental to your triumph.