How to successfully ask for investment for your start up. Knowing how to ask for investment plays a key role in determining the success of your start up business. Before you approach a potential investor, make sure you have an exciting investment pitch, know how to ask the right questions, and figure out good ways to attract investors.
Key Elements That Make Up A Successful Investment Pitch
-Be critical with your timing. Ensure that you are seeking investment at a time when you are almost sure an investor will pop out money. At the end of the day, a good pitch is what will determining the final outcome however, waiting till the investor is a financial space to splurge on a new business could be an added advantage.
-Present your pitch as a story. If you think your business idea has the potential to turn into the next best thing, confidently present that to potential investors. Investors are usually less interested in a company’s current state but rather the bigger and brighter picture ahead.
-Make sure the pitch is presented to the right audience. For a small startup, meeting with large venture capital companies might not be the best way to go as they invest a lot of money and expect the businesses in which they invest in to be at a higher stage in their development.
-Use the passion and confidence you have in your business to persuade investors. Be dynamic in your pitch and make the investor understand what exactly makes your business unique from the next one.
-Keep things simple and easy to comprehend. Although the people you are presenting your pitch to usually have extensive business experience, keep it short and sweet to avoid boring the investor or even worse, getting confused by your own use of complicated business terms.
-Always mention the sales you had up to that point. If you have generated sales, then you must let the potential investors know that your idea is already making money. While that will be a promising sign to them, it’s not the investor’s point of interest. It will only help add points to the ‘potential growth rate’ of the business.
-Properly outline the potential profit for investors. You might have a personal passion for your ideas and your company, but most investors just want to put their money in a profitable business. clearly outline their expected share of the cake once the business is up and running.
