The vast majority of small businesses are financed by the owner’s personal savings. However, not having a starting capital doesn’t mean that you won’t be able to create a startup. You can get the funds you need from investors, and to do this, you have to make an impression. Presenting a sound and promising business plan is a must, but you should use additional tricks to make them think your project is truly worth the investment.
5 Tips and Tricks for Making an Impression on Investors
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Tell a story instead of a pitch
The power of storytelling in marketing is proven by studies (Journal of Brand Management). However, few people realize that the same benefits are applicable when pitching your startup idea to investors. Telling a story will make your project more memorable and easier to relate to.
Make your story fascinating and intense so it can hold the attention of your audience. Boring spreadsheets and calculations are needed, but you can include them into the information package. The pitch should be focused on the story of your startup and be thrilling and captivating to make sure investors love it.
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Provide awesome visuals as a background
Your story-pitch will be much more powerful when supplied with relevant images. Creating a PowerPoint presentation allows you to make maximum impact as your slides can combine visuals and important text messages.
Remember the basic rules of a great presentation. Use only one idea per slide and preferably one image. Cut the text as short as possible. Use slide layouts designed to make maximum impact. You can find those in templates like the ones at https://www.improvepresentation.com/blog/best-powerpoint-templates. Choose an image relevant to the text because this makes it easier for the mind to memorize information.
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Be exact in every detail
Being exact and thorough makes you look more professional. This shows potential investors that you really know what you are doing. Detailed and focused explanations also help them see exactly what your business is about and understand how it can benefit them.
The main points you have to be very exact about during your presentation are:
- Your product/service description (explain what it is, but quickly and to the point)
- Unique features of your business
- Your targeted audience (mention how your particular product appeals to these people)
- Your lead generation and conversion plan (investors need to see you have a viable strategy to attract customers)
2. Answer investor’s questions (preferably before they ask them)
A sign of a really good pitch is that there is no need to ask any questions after it because it answers them all. This is the effect you should be going for when you want to impress investors during the first meeting. This will prove that you are a high-class professional who has it all well in hand and knows how to succeed.
However, your investors might have questions you haven’t thought about when writing your pitch. Be prepared to answer them quickly and thoroughly. Prove your proficiency in the subject and confidence in your success.
3. Give them an exit strategy
The main reasons why investors might not want to give money to your startup is the risk of losing it. So help calm their fears by showing them a sound exit strategy.
Simply put, you have to show the investors a plan that, if implemented, will definitely bring them good returns. For example, selling your strengthened business for profit can be a good exit strategy.