You’ve got a vision for a business that you believe could be a success. Unfortunately, your minimal experience, non-existent network, and limited budget make it nearly impossible to accomplish your goals. Taking out a loan is an option, but getting approved with a mediocre income source, low credit rating, and no collateral is an uphill battle. Short of giving up on the idea altogether, you’re desperate to find an alternate solution.
Turn to Investment Firms
Though it may seem like all hope is lost, many entrepreneurs gain the financial resources they need to launch their businesses by working with investors. These are individuals or companies like The Chernin Group (TCG), that provide capital, motivation, support, and resources to business owners. Depending on your agreement’s terms, you can receive assistance with various phases of your business development and growth.
Pitching Your Idea
While working with an investment firm could be ideal for getting your startup on the road to success, not everyone who wants to start a business is eligible. Securing a contract with the best investors will ultimately require you to show them why you’re the best candidate. As coming up with a pitch is challenging your first time around, here are some suggestions to knock it out of the park.
Select the Right Investors
Before planning your pitch, you must find the appropriate audience. There’s no need to persuade someone interested in tech to invest in your fashion design business. Interests aren’t the only factors to consider when choosing an investor.
Think about your needs as a founder. Do you simply need a few thousand bucks to get started, or do you need assistance with market research, management, human resources, operations, and expansion? The idea is to find an individual or firm that can help fill the gaps to increase your chances of success.
Identify a Problem and Solution
The best businesses are those that can solve a common problem for the general public. As you assess your products and services, what issue do they help to resolve? For example, if you’ve developed an application that allows monitor internet usage, it could be a useful tool for parents.
Parents who are often bombarded with busy schedules don’t have the time to keep up with what their children are exposed to. Therefore, the application would allow them to stay in the know and protect their teens more effectively. Adding this information to your pitch shows potential investors a need for what you’re offering.
Business Models, Projections, and Accomplishments
Remember, the idea is to show investors that their contributions will generate a significant return. When creating your pitch, don’t forget to include models, projections, and any accomplishments you’ve made thus far in sales. How do you plan to make money? How will you distribute your products and services to your target market? What, if anything, have you accomplished so far? (i.e., how much have you earned in the last year, do you have any sponsors, or have you successfully gotten your products on the shelves of local stores?)
Make it Entertaining
You want your investors to know that you mean business, but a long, drawn-out, and boring pitch won’t get you the support you need. You must find ways to make your pitch engaging and entertaining for your audience. You can include demonstrations, offer product or service samples, share a personal story, or tie your pitch into your audience’s unique interests.
Launching and sustaining a successful business is no easy feat. It requires a great deal of time, money, and resources. If you’ve put off your vision due to a tight budget, limited experience, or few resources, a business investor could give you the boost you need. Once you’ve narrowed down your list of investors, use the tips mentioned above to put together a pitch that will convince them to back your dream from start to finish.