Entertaining the idea of starting a business is not a simple feat. Whether you’re a novice or a pro in entrepreneurship, you still need to apply novel, strategic ways to engage investors to back your idea.
Both small-scale and big-scale enterprises begin with ideas prior to launching their products and services. Even giant corporations seek support from experts of various industries like science, technology, and marketing to name a few.
Every thought needs a careful approach and in the business world, investors play a crucial role in supporting your ambitious project. Here are 7 practical tips on how to turn your startup plan into a reality.
1. Make an appealing business plan
Prior to engaging in a series of discussions with investors, it is highly encouraged to be ready with a specific presentation of your desired business and why it stands out from competitors. It must be tailored based on your audience, target market, and budget to name a few factors that you need to consider.
Apply the SMART goals:
Specific– Identify the plan and how it will be achieved. (If you plan to run a meat shop in a local area, consider franchising of an already successful brand as it will ensure you a good ROI)
Measurable– Be ready to answer questions that require details in figures, statistics, deadlines, etc.
Achievable– Show that your professional team is able to accomplish your business’ goals.
Relevant– Set realistic, doable goals
Time-oriented– Provide a timeline as to when results can be accomplished (Ex: Construction of Meat Shop & Crew Training: Timetable: 60 days)
2. Pitch with confidence
Nothing beats a speaker armed with confidence and proficiency on his/her subject. As a presenter, you need to sell your ideas and your key investment to wow your investors is your great belief in yourself.
No one will believe you if you don’t trust yourself first. Walk the talk by setting a firm yet friendly tone. Engage in conversations that set impressive impressions. Moreover, be in your best business attire as your appearance alone will tell how knowledgeable and witty you are with your business plan.
3. Discuss your strengths
Summarize your strengths and qualifications that make you the best person for this business. Share your experience in this type of venture and explain how it makes you a perfect fit to manage the business. Highlight your achievements and make them comfortable with your personality by making them feel how determined, committed and smart you are for this job.
Let’s say you want to put up a communications training center in your city. Of course, your potential investors would expect you and your team to be proficient in this field. Here’s a sample executive summary that you can tell them:
“My degree in Public Communications opened doors of opportunities as it equipped me with the necessary skills and knowledge in this project. My perseverance and hard work led me to my post as a trainer for international English exams in a reputed firm. I’m proud that my achievements are the professionals that my students have become and the recognition that I earned. I’m confident enough that I can lead and serve more people with this business.”
4. Master the art of lean thinking
As tempting as it can get, you might find yourself telling your potential investors about your grand plan of the project and its future that needs millions of dollars. Do not get yourself into trouble by avoiding this overwhelming idea.
Note that investors may not be interested in funding all of your business’ needs. Take thing slowly.
Be realistic with a number of resources that you need in every phase of your business. Ask yourself “What is the minimal amount of resources that my plan needs at this stage in order to get through the next phase?”
5. Explain how you will use the budget and how the investor can profit
This part is crucial as you need to discuss to your investor the resources that you need and the corresponding budget.
After going through the details, you have to clearly illustrate how you are going to maximize finances and when and how the investor will be paid plus his profit.
You need to explain the price listing of the products or services that you sell, the type of profit margins are there and the exact process of how you earn money.
I remember making a marketing plan for a language center and by the time I presented it to my manager, he asked me to include specific details from fare to advertisement expenses as these details are relevant.
6. Show the relevance and demand of your product/service
Research is your best ally in this stage. Be updated with current news pertaining to your product and service and study the reports, facts, and statistics. Include this relevant data in your presentation as this will illustrate the growing demand and advantages of your project.
7. Don’t expect a quick answer
After seeing your possible investors thrilled and satisfied with your presentation, don’t raise your bar of expectations by being impatient.
They will take the time to review and assess your business plan and the meeting that you had.
Be thankful for their time and suggestions instead and patiently wait for the deal that you have been eyeing to happen. Stay positive to attract your dream into a fruitful reality.
Elena Tahora is the content specialist at Greenr. When she is not writing, Elena enjoys swimming and playing soccer with her mates. She also travels a lot.