How can you impress investors?
Speak clearly and slowly: Enunciate your words clearly and avoid speaking too fast. Use body language: Use gestures and facial expressions to emphasize key points and convey confidence. Be authentic: Be yourself and let your personality shine through. Investors invest in people, not just ideas.
- Networking. ...
- Make a powerful pitch. ...
- Be confident and realistic. ...
- Emphasize the return on investment (ROI) ...
- Know your investor audience. ...
- Start somewhere. ...
- Small business loans. ...
- Understand your financial situation.
- Create an elevator pitch. ...
- develop a business plan. ...
- Create a financial model. ...
- Establish relationships with industry experts and venture capitalists. ...
- Leverage existing networks. ...
- Demonstrate traction and market fit.
- Increase Traction. ...
- Achieve Target Outcomes. ...
- Be Clear About Financial Goals. ...
- Demonstrate Your Company's Value. ...
- Know Your Market And Your Team. ...
- Present A Solid Business Plan With A Strong ROI Forecast. ...
- Discuss The Trajectory Of Your Company.
- Understand an investor's mindset. ...
- Craft a compelling business plan. ...
- Build a strong team. ...
- Demonstrate market potential. ...
- Highlight key milestones. ...
- Leverage connections and networks. ...
- Conduct targeted outreach. ...
- Utilize angel networks and online platforms.
- Serial investor Magnus Kjøller receives more than 500 cases annually, and in many cases has founders an unrealistic view of their own business when they apply for capital. ...
- “It can't go wrong”
- "We have no competitors"
- "I need a director's salary"
- "We need capital - not your help"
- A market they know and understand.
- Powerful leadership team.
- Investment diversity.
- Scalability.
- Promising Financial Projections.
- Demonstrations of consumer interest.
- A clear, detailed marketing plan.
- Transparency.
Expect to show investors a detailed business plan loaded with key finance terms, marketing strategies, financial projections, and market research. They'll look at metrics like burn rate, projected growth, customer acquisition cost, and gross margins.
Investors understand that businesses are built on people: The work they put in, the experience they have, the drive they show to succeed. You won't win your investors on charisma alone, but without giving them a reason to trust in you, investors won't even look at your business proposal.
Investors typically scrutinize financial statements to assess the company's operating performance, specifically focusing on key indicators such as revenue growth and profitability. These indicators provide valuable insights into the company's ability to generate profits and effectively manage its resources.
What to offer investors in return?
A fair percentage for an investor will depend on a variety of factors, including the type of investment, the level of risk, and the expected return. For equity investments, a fair percentage for an investor is typically between 10% and 25%.
Networking is one of the easiest ways to find people who are willing to invest capital in your business. If not, you can always Google and go in the cold. Find out the names of the people involved in the funds you're approaching and then research those people.
- Decide your investment goals. ...
- Select investment vehicle(s) ...
- Calculate how much money you want to invest. ...
- Measure your risk tolerance. ...
- Consider what kind of investor you want to be. ...
- Build your portfolio.
Showcase the market opportunity and remember to focus on the potential return on investment and how the investor's capital will fuel your growth. It is crucial to have your complete pitch deck consisting of 10 to 20 slides, a condensed business plan, team resumes, and detailed financials that support your presentation.
Fear of losing money
This is reflected in the concept of loss aversion: 1 The pain of losing is psychologically twice as powerful as the pleasure of gaining. This means we're more likely to avoid investing because we fear the potential losses more than we value the potential gains.
They may think that the market for your product or service is too small, or that it's not growing fast enough. They may also believe that there are already too many companies competing in your space. Another reason an investor might reject your business is because they don't believe in your team.
- Keep some money in an emergency fund with instant access. ...
- Clear any debts you have, and never invest using a credit card. ...
- The earlier you get day-to-day money in order, the sooner you can think about investing.
- A clear and concise elevator pitch for your company.
- A solid demo of your product. ...
- An executive summary or a pitch deck that explains your product-market fit. ...
- Know how much money you need and how you'll use the funding.
So they're going to want to know exactly why you need the cash and exactly what you plan to do with it. They'll also want to know when they can expect a return; that should be a part of your business plan. Investors will also be looking for an exit strategy, and you need to think about that in advance.
- Skip the small talk. What should you discuss after saying “hi” and briefly introducing yourself? ...
- Know your market. Is there a large market opportunity for your business? ...
- Be honest. You probably don't plan to lie to potential investors, or anyone else. ...
- Do your homework.
What numbers do investors want to see?
What Do Investors Look For In Financial Statements? Of all the things company financial statements reveal to an investor, there are four main factors investors consider: revenue, profitability, debt level, and cash flow.
- Invest in real estate.
- Gather your savings in a high-yield savings account.
- Invest in the stock market.
- Start a blog.
- Use robo advisors.
- Invest in cryptocurrency.
- Start an e-commerce business.
- Start a dropshipping business.
In the U.S., an accredited investor is anyone who meets one of the below criteria: Individuals who have an income greater than $200,000 in each of the past two years or whose joint income with a spouse is greater than $300,000 for those years, and a reasonable expectation of the same income level in the current year.
The three types of investors in a business are pre-investors, passive investors, and active investors. Pre-investors are those that are not professional investors.
- They see potential in your company. ...
- They're excited about your product or service. ...
- They believe in your team. ...
- They're willing to give you feedback. ...
- They're patient with you.