How to Convince a Prospective Investor

It is said that every business starts with a great idea but it does not lower the importance of funding. As an ambitious entrepreneur, you may find yourself in a situation where you do have an out of the box idea but shortage of funds is preventing you from implementation.

This problem can be solved by inviting a potential investor for the partnership. However, to convince the investors will not be an easy job as you will have to address their chief concerns. Here comes the requirement of a perfect proposal that will force the other party to join hands.

Instructions

  • 1

    Let them know what your business is about and what significance it has in the contemporary era. If your business is not unique or one of its own kind then you will have to tell them what will differentiate you from your competitors in the market. If your idea is unique then they will think why nobody tried it before? You should answer each and every question in detail.

  • 2

    Investors would like to know your Unique Selling Point (USP). It can be anything like the competitive price of your product or fee of your service, target consumer or even the idea itself. Try to be descriptive and address all of their concerns.

  • 3

    Give them complete information of the initial cost. After listening to your idea, they definitely will be curious about the budget. Avoid giving trivial details and tell them the exact amount. You can mention the expected profit while telling them about the investment.

  • 4

    Next step will be to define your strategy to achieve all these goals. It is very important to look solid in the planning department as everyone, before taking a leap of faith, wants to know where he/she is going to land.
    It is always better to mention a counter strategy if things do not go according to plan. This will help you to gain the investor’s trust.

  • 5

    Introduce your team of professionals as they will be interested to see what you got in the team. Highlight the previous experiences of your team members and show complete faith in them. Do not try to give the impression that it is only you who handles everything.

  • 6

    You should also mention the risk factors otherwise they won’t treat your proposal as an honest effort. Share your market research and a few examples of your competitors.

  • 7

    Last but not least, you should summarise your proposal tactfully. Cover all the main points of your presentation and then let them evaluate your proposal.

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