Yes, it’s a scary and daring task to start your own business but it’s an exhilarating and adventurous journey to embark upon. It’s a different thing to work for someone else and a completely different transition to work for yourself, knowing the consequences, pressure and amount of hard work dedicated to the project. You’ll need help and honestly everyone needs help.
The first thing that concerns a budding startup that is hoping to get off the ground is getting funding for their project. But the good part is that it is not difficult anymore to find seed funding for startups in India with many online platforms like startup paisa dedicated in bringing investors and entrepreneurs together, building an ideal platform for both to meet.
It is important to keep yourself motivated to believe in your idea and the fact that if your startup has potential then why wont it be a hit.So the actual thing to concern yourself with is how you are going to convince the investors once you find them.
Your investors are hardworking established people who’ll generally have a boatload of experience and knowledge to bring to the table. So keep in mind a couple of things before you go on to pitch your startup. To give you a conclusive tip right here- your belief will reflect in your pitch and that will contribute to a long lasting professional deal.
Research is the crucial point that will draw your way into a lasting impression for your investors. Go to your potential investors as a well researched entrepreneur with thorough knowledge of the market, trends, ideas, facts and execution of your plan. Have well researched and analysed projections included in your business plan.
Moreover get your research up to date on your investors. Learn about their previous investments, general interests and give your pitch a personalized structure and tone more suitable to a particular investor.
When you get to the pitching part of the deal, that’s where the game changes. Keep in mind that the investors you are approaching have already looked through many business proposals before your own, so what really decides your chances of drowning or flying is the way you represent your idea ie. pitch.
Take a customer centric approach, which is problem oriented. Highlight the problem you are targeting to solve and the process of achieving the solution while talking about the beneficial factor for the people in general.
After you are done explaining the project, take a page out of the sales book. Use your knowledge and experience to better target your investors interest. Mention the unique quality of the concept in respect to the current need and trend of the market or industry. Approach the money’s worth analogy to make a realistic impression by explaining how and where the money will come of use and with this move towards the revenue generation part of the pitch.
As you come towards the revenue generation part of the pitch, have a solid revenue generation model ready with realistic and concrete projection of the money used and generated.
Taking the big amount of revenue generation approach has proved to be very fruitful with many investors. Selling them the point of multiplying their money with your idea is obviously appealing to the general majority of the investors. It is also a crucial part of the business plan to include projections of the financial status.
Accuracy with Commitments
It is not a very rare event, when startup owners start big on talking, making great promises and commitments to the investors to get them onboard with the project and then fail to deliver those promises on time. This inevitably results in investors backing down and breaking the deal.
For an ethical perspective in business, keep transparency in the financial statements you make in the pitch. Promising high and solid numbers in the future with zero certainty can seriously harm the company’s reputation and ruin relationships with the investors.
As mentioned above, it’s a pretty safe bet that your investors have met many people coming to pitch their ideas, so what makes you different and sets you apart from everyone else in order to convince them to invest. It’s how you present yourself and your idea. Be genuine in your pitch with confidence and belief emanating from your style. Have a more creative approach towards presentation apart from ppts and slides.
Make sure to be extremely crisp and clear in your voice to avoid any confusions or hindrance in the communication while representing. Although this point is a given, be well dressed in your presentation and to look more together and controlled in yourself. When you are pitching an idea, remember that you are pitching your own personality and ideologies too, which plays a significant role in convincing an investor and striking a deal.