Seven tips for entrepreneurs to impress investors

Last Updated at: Jan 09, 2020
Seven tips to impress investors

Entrepreneur’s version of a job interview is looking for investors for their business. They should make sure that they tell the right things to the investors and earn capital from them. Investors come from all walks of the life, and entrepreneurs have to tailor their pitch to each of them to make their business more prominent according to their interests. But there are some important things that are always constant and will work to impress the investors and garner the funds which the entrepreneurs need to take their business to the next level. Here are the seven tips for entrepreneurs to impress the investors.

6 Steps To Writing An Impressive Business Plan

Presenting the margins

Investors invest in the business not only by the entrepreneur’s vision but also to make some extra money as well. Having hopeful margins is going to be one of the best ways to impress the investors, but having the numbers themselves is also not everything. All these margins have to be presented in a pleasing and professional manner as well.

Showing growth potential

Investors like to see durability and a stable marketplace full of customers, so entrepreneurs should be in a position to show them the value of their business and how that value will be growing continuously. Entrepreneurs should explain as to how their business applies to the group of people and how much growth potential their brand has, both in terms of revenue streams and new markets. Investors are interested to see that their investment is going to work for them, so one should make sure to show them that their business can help them do that.

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Business Model

Investors are most interested in the things that they can also take part and work in as well. So, having a strong and replicable business model is going to be one of the essentials to get an investor to sign for the business. And also, the business model should be accessible and as detailed as possible, as investors are not looking for a motionless business, but the business which will show lots of growth and has a good business model to achieve it.

Problem-solving ability

A successful business always has a clear visualization and a problem that they aim to solve with their goods and services. The problem must be something which is affecting a large number of people, as a niche problem will have fewer business opportunities or room for the growth. But irrespective of the size of the target market, it’s imperative that the entrepreneur should have a clearly defined problem and goods and services promising to solve it.

Being different from competitors

Having exclusive ownership over some part of the business is going to be one of the best ways to have a competitive edge nobody can replicate it because the entrepreneur owns it. These come in the forms of trademarks, patents, and copyrights, but copyright and trademark laws are less promising for small businesses, so they don’t hold as much importance as a patent does. If the entrepreneur doesn’t have any of these things, they can still establish an advantage with an innovative outlook instead.

Showing team ability

Investors also give importance to the team behind a potential investment opportunity and will be interested to know that the people that are running the show are talented, passionate and the best at what they do. So, it’s important for the entrepreneurs to not only hire talented employees but also to make sure that they show investors that they got the best team for the job at hand. At the end of the day, an idea can look excellent on paper, but if it doesn’t have an excellent team backing it up, it can still fail pretty easily.

Bonding with customers

For a successful business having repeated customers is one of the good signs. Along with this, having good personal connections with the customers through all the avenues is always a good sign to a potential investor. The entrepreneur should make sure that they cultivate positive relationships with their customers and that they can prove to potential investors that they have loyal customers who will always be there for their brand.

Every investor is different from each other and will generally look for different things in each business that they are interested to invest in. So, the entrepreneur should always do basic research as to whom they are talking to, and figure out the best way to capture their attention and persuade them to fund for the company. By following these seven tips and proving the company’s value, individuality, and growth potential one will be able to impress any investor and get the funding which is needed to take the business to next level.