When it comes to having a great idea, if you don’t have money to put behind it, it will never get seen. This is because there is a lot of competition and it is difficult to get through the noise. When you have an idea and what to create a startup, finding investors is essential.
This means that you have to get very good at asking for money. You will need to find the right investors and have the right pitch to get them excited to back your idea. It needs to be persuasive and convincing without coming across as begging for money. There are some basics that must be covered when pitching your investors. In this article, we will go over what the perfect pitch is like so you can get all the money that you need.
1 - Find the right group
If your startup is trying to create a real estate company, then it makes little sense to go to tech investors who don’t understand the market. If your idea is in technology then you should go to Utah Tech as that is where you will find motivated investors that understand what a tech startup needs.
Do some research into where the people are hanging out that will have a vested interest in funding your operation. It is important to network and find people that know the right people.
2 - Tell a story
An investor wants to make money, that’s pretty obvious. However, they also want to have some kind of emotion attached. It could be that they believe it can solve a lot of problems or remind them of something from their past.
The way to tap into these emotions is to tell a story. It should be something of a story or anecdote on how you came to the idea in a way that the investors will be able to relate to. Maybe they had a similar path in their life or a problem they recall that this idea could solve.
A story will also help the investor visualize exactly what it is that you are hoping to achieve. It’s one thing to give them all the specs but when you can show how things will work in the real world, they are more likely to become convinced.
3 - Consider the needs of the investors
Even once they are convinced of the benefits that your product or service can provide, they still have to have one last thing in place to want to hand over their money.
They have some needs that will have to be met and you will need to understand what their needs are. For instance, having a solid business plan that highlights where their investment will go is important. They want to know that you will be responsible with their money and will need to see the details. This is a very important tone to set with your pitch and will go over very well.
