Author: Verónica Ruiz
Are you trying to come up with the next viral idea that will help your start-up finally take off? Or are you waiting for an investor to show up at your doorstep and say “Hey, I’m giving you some money because you’re awesome. No refunds, bye!”? If so, maybe you should wake up. This might happen to some lucky people, but odds are that you are not going to be one of them. So, the best thing you can do is to start creating an effective elevator pitch to introduce your company or idea to the world.
Let’s assume you have a great product. You have worked really hard on it, you know all the details about it and you have a thorough business plan. However, you don’t know where to find economic support. Well, here are some steps that can put you in your way to success.
Thanks to a workshop organized by the Spain-U.S. Chamber of Commerce and led by Jeff Rutherford, Senior Strategist at Wise PR, we have learned the five key aspects to get the attention of investors. Here they are:
1 – Have a killer Elevator Pitch:
Time is money. In just 3 minutes, you need to be able to explain the problem your company solves, what your target market is and how you will make money. Go to the core of the conversation from the beginning.
2 – Anticipate Questions
You don’t want to get caught with a question you don’t know the answer to by the investors. To prevent it, you can try to answer the potential questions of the investor before he/she even ask: Revenues, yearly growth, or short, mid and long term goals for your company.
3 – Investors love Figures
You really need to know your company’s figures since you might want to use them to quantify your idea or product. Mention them. Talk about how many visits your website has, how many downloads, the average orders for a certain product (for e-commerce business) or the life-time value.
4 – You are an Expert on your business: Prove it!
You’re the best representative of your brand and you know everything about it. You are an expert. You know all the figures, your competitors, your potential market and even the human stories behind your start-up. Therefore, avoid saying “I don’t know!”
5 – Explain where you will spend the money they invest in your start-up
This is the million dollar question! If you’re asking for money, you must have a business plan for it; so tell the investor what will you do with those dollars: Facebook ads, advertising, hiring, etc.
Extra tips: Use every resource you have to improve your pitch (podcasts about investors or TV shows such as Shark Tank); and never miss an opportunity to meet potential investors. If you get a no for an answer, use the experience to improve your pitch.
Once you have done your homework and prepared your pitch, another question will come up: Where to find investors? Stay tuned to our blog, we will talk about it very soon!
Photo credits: FullCoverage