Putting money into a small business is risky which is why investors are very selective about who they give their cash to. If you’ve managed to land a meeting with some potential investors, you need to convince them that your product is as good as you say it is and it has the potential to make a profit. This is often harder if you’re a woman because the world of investment is a male dominated field and there’s always the danger that they won’t take you seriously. Before you walk through that door, make sure you’ve prepared these things.
Teach Them To Use It
Even if your product is amazing, investors might not see that if you don’t teach them how to use it properly. Customer onboarding is the process of getting people acquainted with your product and helping them to get the most out of it. You need to use the same techniques in your meeting with investors so they can see all of the benefits and understand why a customer would be willing to pay for the product. It’s such a shame if a great pitch is unsuccessful because the investors don’t quite understand what the product is for or how to use it effectively.
Don’t Ask For More Than You Need
It’s tempting to go in and ask for as much money as you can get but investors will see this as irresponsible and they’ll also worry about your ability to spend money effectively if your plans for the money don’t add up with the amount that you’re asking for. To them, it suggests that you’ve budgeted badly and you’re overspending on things. Work out exactly how much you need for the next stage of your business plan and ask for that, and no more.
Outline Where The Money Will Go
There’s no way you’ll get investment if you come in with some vague plans for more marketing and better manufacturing. Investors want to know the tiny details of exactly how you’re going to spend that business loan. That means hard data, decide exactly what your company needs to take it to the next level and draw up a plan of how every single penny will be spent and, most importantly, how that spending will help your company to progress and what returns you’ll see on the investment.
Show What You’ve Invested
If you go into a meeting asking for money and you haven’t put any of your own into the company so far, investors are going to wonder why that is. If you had real faith in this product then you would have backed it yourself for as long as possible before then coming to ask for investment. By showing them how much of your own money you’ve put into the project so far, you prove that you have faith in it and you’re dedicated to making it work. That’s the kind of person that investors will want looking after their money, not somebody who isn’t willing to make any sacrifices for their company.
If you can do all of those things in your pitch, you should walk out of that door with the money you need to make your business a huge success.