Although it’s a romantic notion that all you need to succeed in business is a great idea and a lot of hard work, that isn’t always the case. It takes a lot of capital to achieve your goals, and that can be exceptionally difficult to scrounge up on your own. Even established, self-sufficient companies often find themselves in need of an extra boost to support their growth and reach the next level. Whether you’re a startup trying to gain a foothold in the marketplace or an existing player preparing to make a big move, you need to be successful with investors to secure the funding you need.
If you’re getting ready for your funding round, it’s critical that you keep your head on straight and concentrate on the elements of your pitch that will be most appealing to your potential investors. Unfortunately, there’s a lot of bad advice floating around out there, much of it focused on making your proposal as flashy as possible. Although it’s true that you want your pitch to be confident and command the audience’s attention, focusing too much on flash may hurt your chances with some people you want to have on your side.
Instead of trying to dazzle your potential funding sources with a lot of pie-in-the-sky promises or unfounded boasting, providing hard numbers based on solid reasoning and verifiable intelligence is the best bet. Fortunately, there are a number of steps you can take to ensure you go into your funding round with the right approach.
Before you start putting together your presentation, it’s worthwhile to think about who you will be approaching. Having a reputable lead backer is critical because it can inspire confidence in other financiers. Once they see you have someone with a good reputation onboard, they will be more likely to follow suit.
As you start putting your pitch together, you want to start with what makes your proposal unique. You have to be able to show investors that you’ll be bringing something new and interesting to the table. This includes highlighting your business plan as well as the team you’ll be counting on to execute it.
When describing your team, it’s also a good idea to extend the scope beyond your executive suite. By demonstrating that you’ve built a highly capable team of professionals with the skills needed to execute your vision, you can calm a lot of the fears financiers may have about investing their money into your enterprise.
Finally, you need to show that you understand the market and have a clear plan for meeting your objectives. Sound financial forecasts based on thorough and comprehensive research are perhaps the most critical component of any pitch if you want to have a successful funding round. Without these assurances in place, you will have a much harder time bringing investors to your side.
No matter where you are on your business journey, being able to secure the funding you need is absolutely essential. To learn more about how you can win over your targeted investors, take a look at the accompanying resource.