3 Ways To Convince Investors To Back Your Business
If you want to start a business, the first thing that you need is a killer idea. The next thing that you need is money to make it happen. If you have a bit of money saved up, you can get the business started on your own from home but there will come a point when you need to look to investors so you can afford to grow. Investors won’t just throw their money behind any business that asks for it, so it’s up to you to convince them that your business is a good investment and they will see a good investment. You will have a lot more success with investors if you follow these important tips.
Make Your Business Plan Airtight
Investors want to know how you plan to grow the business and make their money back, so they’ll want to see a business plan. It’s important that your plan is airtight and you have covered all of the details. It’s not enough to say that you hope to break even within the first year, you have to outline exactly how you are going to do that. Provide a breakdown of how you will spend every penny of their money and what specific actions you will take to achieve your goals. When putting together a business plan, you should use the Hoshin Kanri process. This is a process for business planning that was first developed in Japan, and it consists of 7 specific steps to help you create a detailed plan for the future of your business. This guide to Hoshin Kanri will tell you everything that you need to know. If you cannot answer investor’s questions about exactly how you plan to grow the business, they will not have confidence in you.
Get Them Excited About The Product
Although it’s important to have a clear business plan and a good grasp of the numbers, you don’t want your pitch to be boring. You need to get the investor excited about the product, so make sure to bring some along and plan a great demonstration. When you are showing them the product, it’s also a good idea to speak about product development and give them some of your ideas for future products. This shows them that you’re not a one trick pony and you have more great ideas.
Show Customer Reviews
You can spend as long as you like showing them all of the amazing features that your product has, but your opinion is worth nothing compared with the opinion of your customers. If you have already started selling products, you need to encourage customers to leave reviews. Some positive reviews from your customers legitimize your claims about the product and prove that you have something worth investing in.
You may have to go through a few investors before you find one that is interested, but you have a much higher chance of success if you follow these tips.
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