Pitching; what are investors really looking for?

Many of us have tremendous ideas for an investment project or a start-up and at times some of these ideas may in fact be very lucrative. However, no matter how small a project may seem, it requires one thing in totality, “Funds”.  One may be lucky and stumble upon an inheritance and eventually be able to put the required funds into the investment project. However the majority of people may have great ideas but are usually faced with the finance or funds hurdle. So what exactly are investors looking for when you pitch them your ideas for funds?

Well at a glance, the answer may seem straight forward that they just want to know whether your project or start-up will double or multiply their investment. This is however not the case as they’re looking for much more than this. An investor will need to know the following as clearly and briefly as possible:

·         The name of your start up, and what it’s all about stated clearly and briefly (Not more than a sentence).

·         What’s the benefit of your business, and for whom does it target

·         What problem is your business addressing exactly and your insights towards solving the given problem.

·         A visual representation of the problem as well the solution will be most desirable.

·         Your business proposition should be stated clearly, that is to say, how does your business work? and if there’s proof of early success, clearly indicate it as well.

·         The market size and potential for your business. Here the investor simply wishes to know how forward looking you are with your business.

·         Your competition stated clearly, as well the differences with your competitors and what new item you will be offering

·         The overall market plan, and core strategy as to why the business will be an obvious success.

·         Financial model of the business. This should include the overall plan of revenue flow, it may not necessarily be how much revenue you’ll make. A good cash flow statement as well as representation of cost will be an added bonus. This depicts how large your business can get overtime.

·         What exactly are you looking for in your business? If its funds only, clearly point this out. If you’re interested in partnerships or relationships with higher profile companies, clearly point this out as well.

·         Does your project have any weaknesses or threats (well every business has these) and a potential investor will want to hear what exactly harms or threatens your business

·         The overall or rather ultimate outcome of your business. Here, a potential investor will want you to be as realistic as possible over the expectations of your start-up, be it an acquisition or as an IPO in the stock market.

·         Founder members and the team that made the whole start-up or business possible. Well one may argue that this is not very necessary, but take into mind that investors invest in a person or the people responsible for the whole idea.

·         Last but not least a word of thanks for having listened or viewed your presentation. After all a simple and polite "thank you" can go a long way and prove to be very rewarding.

Images courtesy of entrepreneur.com and tnooz.com

A very blessed and prosperous 2016 to you all.