And the most important thing is to briefly and clearly state the most useful information in 10 minutes because no depositor will listen to you for two hours. This explanation is not as easy as it seems at first glance, so below, you can find more detailed tips on how to attract depositors to your biz.
People with creative professions focus more on how to create a beautiful output and how to make it visually attractive and soft to the touch. Or, if we are talking about a musician, they will think about the sound and rhyme between words. However, to promote any industry, knowing your business well is not enough to interest investors. You also need to be good at persuasion, be a financier, and be a confident person.
If you are an entrepreneur in your profession, you still need to know the details of promoting your business. Even if you don't plan on funding, a good presentation will not be superfluous. It organizes business knowledge and may come in handy if you ever decide to look for an investment.
How to attract investors to your business
To attract depositors, you must know basic tips: availability of representation, speech rehearsal, depositor preferences, simplicity of information, ideal client, approximate income, professional growth, customer acquisition strategy, your team, competition, exit strategy, and feedback.
- Availability of presentation (The goal is to create an engaging representation that will pitch investors to your biz. You should have a short variant that you can submit within 10 minutes, as well as an extended variant that includes all the information you want to provide to potential depositors.)
- Speech rehearsal (Many entrepreneurs think that by simply knowing their biz and having a vivid presentation with beautiful pictures, they can quickly and concisely explain its value. Therefore, they go to meetings with depositors unprepared. When you think that your speech will take only 10 minutes, you will not have time to convey all the important information in half an hour. So take some time to practice, simplify your speech, and keep only those elements that are directly related to the development of your biz.)
- Depositor preferences (Start your representation with a fun, hands-on story that can help solve a problem in the job market. If you have tested and have statistics, share them with people as well; this will immediately interest your audience. Before you communicate with an investor, study it thoroughly. Find out in which industries they have invested money in the past, what their weaknesses are, and what worries them; this will make it easier for you to adapt your story to his perception.)
- Simplicity of information (Tell what is unique about your business idea and why a depositor should put their money in it. Keep the text simple so that the investor can easily perceive the information and retell it to others. Use statistics as often as possible because they inspire confidence in the audience as official data.)
- Ideal client (Don't say everyone is potentially your target audience. Be realistic about who you are advertising your output to and break your market down into TAM, SAM, and SOM. Not only will this impress your audience, but it will also help you strategize your deployment plan more strategically. Try to develop an image of your ideal client. It can help depositors visualize a potential customer base and show them that you take your customer base seriously and responsibly. In addition, it is much easier to prepare information for a specific person than for a wider audience.)
- Approximate income (Depositors are most concerned with how the money will be made. You should be extremely specific in describing your pricing policy and be sure to clarify how considerable the presence of a depositor in your business is.)
How to interest investors
There are some useful tips on attracting investors:
- Professional growth (At the beginning of your speech, tell in an accessible way about what you and your team have achieved. The depositor must understand the potential of the company he is dealing with. Moreover, tell them about your plans. Show an action plan for the near future that directly describes the role of the financier in your company’s development.
- Client acquisition strategy (Tell about how you are going to attract clients, how much will be spent on it, on which platforms you will place ads, etc.)
- Your team (Depositors need to know not only the business idea in which they are investing but also the people who are working on this idea. Provide information about your team, tell them what skills the people of your team have, and which ones still need to be worked on; this can be marketing, managerial experience, programming, financial management, and so on. Let them know that you are objective about the situation in your team.)
- Rivalry (Show depositors how you differ from your rivals. It's a good idea to provide a slide that describes the strengths of your competitors on the one side and yours on the other.)
- Exit strategy (If you want to get more than $1 million from depositors, they will want to know your exit strategy and whether you plan to be acquired or go public. Show that you have done your due diligence with this exit strategy and explain why it will make sense over the years.)
6. Feedback (Regardless of whether an investor agrees to invest in your project or not, continue to develop and improve your public speaking. Do not be afraid to ask the depositor what they didn’t like about your proposal because you took the time to speak and have the right to receive feedback. If possible, ask a team member to take notes during the representation. Look for weaknesses, areas you missed out on, and slides that sparked depositor backlash. Keep improving and practicing even if you think you have found the perfect way to tell the story because depositors are different, and you will have to constantly adjust to them. Don't worry, and treat every depositor proposal as a learning attempt for you and your business ideas. You will have professional growth and will be able to apply the knowledge gained in all areas of your business.)