You have got an idea, one which is great, workable and sustainable and is eagerly waiting for someone to fund it, as there are many investors out there who wish to invest in projects that are feasible, viable, and innovative. It is you who will have to market your startup.
For a good impact of your idea, you have to go through a thoughtful planning process and prepare well to explain your idea in the best possible way. You can take some time now to make yourself ready for the event (presentation).
Your introduction and few moments of your initial time can win or lose the attention of probable venture capitalist or angel investor for him to decide to bet money on you or not.
An angel investor eats, breathes and dreams of ideas which he/she can fund and profit out of it. Here are few tips on how you can pull the angel investor to fund your project.
- Have your details ready
Before you contact investor, have 15 to 20 slides that cover all your business aspects. Few slides can be the description of your product/services. How will you market your product/services? What is the demographic who will use your product or services? Your business model and how will you scale up?
Marketing strategies that you will adopt? Who are your competitors in the field? Who will all be your team members and their roles? How much money and time you will need to spend to achieve breakeven point? How will you spend money and how much will you profit from your sales?
By discussion you can get feedback from your friends and relatives once they go through your idea. Present them your ideas and get feedback on the positive and negative part of your idea and its presentation.
Do not argue but listen to your friends carefully the questions they put up. You can also ask them what they did not understand in your presentation. What points or topic was not clear to them.
Before you think of talking to any investor do your homework thoroughly. Be ready with the trial run and rehearsal before the launch.
- Build a vibrant team
Fundraising is an important part for any startup. One of the smartest moves is to have a team of advisors who will introduce you to great investors. The team should be such that it should be passionate and committed to your idea too.
Instead of cash, you can commit each member with small equity in your enterprises. Maybe some may even be ready to invest. Many startup companies often skip the step of forming a right team of advisors.
You may know few people. Each member of your team also knows few people. If you pool everything you will know lots of people. There are many investors who have quite a lot of cash lying unproductive, idle or inactive with them and may be looking for less risky investments.
- Practice your lines
Practice makes man perfect so goes the saying and it fits perfectly when it is time to display your presentation. While displaying your idea to potential investor rehearse your lines thousand times. Go through your speech, practice in front of the mirror. Though it may sound silly and awkward, when you know your lines perfectly it builds up your confidence which is important.
Once you are prepared and confident, calmness follow. Being calm you will able to answer all the hard questions put up by the investor. Satisfied answers really matter.
- Know whom you are meeting
Find out details about the investor you planned to meet. If you know what interests and what bores your investor, you will not be in unchartered waters. Both can forge a better friendship and understanding.
You should know if the investor has been an entrepreneur, if yes he will understand you better. Has your investor failed in any startup, if yes he will have apprehension about the project? Was he in the past an associate investor or a principal investor? Though these are small things they will help you to decide which line of action you should take.
Be flexible, we all make mistakes and do have a share of bad and good days. Once you fail, remember to get up and start walking again. Life goes on and on and on.