You have this amazing idea. Like, Google amazing. It’s going to revolutionize the way we live our lives, they way we think, interact, conduct business and manage our homes. You can see 10, 15 even 25 years down the road how everyone is going to use your product/service in their homes, or on their jobs and even at their schools. You just came up a world-stopping idea you know everyone is going to want of piece of. Minor problem.
It’s only on paper.
And if you had to be honest with yourself, you don’t have the kind of financial resources to throw at this amazing idea that you would like. You may have some savings you can tap into, be able to take out a loan, but nothing to really get this life changing idea off the ground. So, what can you do?
Well, it’s a little easier said than done. Why? Well, first off, is this your first business idea, are you a entrepreneur newbie? If so, it’s going to be difficult to find investors for someone who, let’s be honest, has no experience in starting up a business. But being a little wet behind the ears when it comes to starting and launching a business isn’t necessarily a red flag for investors, especially if they like your concept. What might turn investors away is the fact your idea is just…. still an IDEA.
Proof positive is much more resounding that possibility. People want to see results before they put their money where their mouth is. What does that mean for you, the entrepreneur? It means that amazing-Google-quality idea is going to be manifested first by YOU before you can bring in investor capital. That’s just a reality you’re going to have to deal with. On the flip side to that, it’ll make your pitch more substantial for investors. You can find tips about drafting the perfect pitch to investors (regardless of your idea, invention or service), but there are 3 main elements you want to stick to when pitching to investors.
- Be concise – Keep in mind, your investors are busy running their own businesses and buying and investing in other companies. Unless they ask you to present a Power Point, get to the bottom line quickly. What are you doing, how is it different/new/better and what are you looking for from them.
- Show results – What have you done, been able to produce or what milestones have you reached? Investors want the numbers because it plays in your favor when the numbers are favorable.
- Talk about the projections – Go ahead and boast about the expected growth you forecast (but only if there’s evidence, no lying here or it may hurt you). Make sure you to incorporate your current results in your projections.
Now, keep in mind, investors may not be for everyone or for every business. You’ll have to consider what you’re willing to offer in return whether it be equity in your company, ROI or another mutual agreement. If you get the chance to check out The Funding Guru, the belief there in regards to obtaining investment capital: If you go looking for investors, you’ll get advice (or mentors) and if you go looking for advice, you’ll get investors.