The need to attract third-party resources to your project somehow arises in 99% of all start-ups. To succeed in this field, you should know how to find an investor, how to interest him, what the investor wants to hear and see. You should look at your startup through the eyes of a potential investor and answer the question: what does an investor want to know about your project?
Presenting your project, you can tell about all its aspects, but among this heap of information there may be something that the investor does not need at all. You should talk about your project to convince the investor in a very short time that your startup is exactly what he needs. In a sea of endless information, investors are guided by three beacons: The need for the target audience; A modern solution to the problem and a proposal from the startup; Team and resources. After considering these items, your project will either be remembered, or you can continue to drift in anticipation of the proposal. Let’s look at three critical issues that worry a potential investor:
- The need of your product / service for a certain target audience is the most important, for which any project should exist. Even if this need is unknown to the investor - show that it is real. Even if it is not obvious at first sight, tell about it so that the investor understands that this can really be important. It is important to solve real problems in investing. Show why the world needs your project, how it can help it. You should demonstrate that you are doing something important and necessary.
- How is the problem solved now, and how do you propose to solve it? You need to understand that you always compete with any decision if the need for a project is real. The main competitor is the lack of a solution. What will make a person use your product if he has not done anything for that before? What will change his habit, and why he will pass from a competitor to you? The advantage of the project should be clearly expressed and directed at what will motivate your consumers to act. This is the approach that is interested to the investor.
- Team and resources. The rule of a good team that will pull out the middle idea, and the weak will overwhelm even the best, has not been canceled. Money and help don’t go to any abstract company, product or solution, but to specific people. Show why the investor should believe you and in you.
Everything should be simple, short and clear. These three points are enough to interest the investor or vice versa to realize that you are not following the path. Proceeding from it, there is an understanding that there is a market, that money will be and that the team will be able to get them.
These three rules will certainly help to interest the investor. But to "hook" it, it’s nice to have your own "chip", which will distinguish you from a lot of other start-ups.
Such features can be:
- A super professional team that you can believe without even knowing what you are going to do (a team of professionals known for their past successes)
- A unique vision of the product (a bold, unique idea, a unique way of solving of an important problem)
- Bright, but supported by the facts of the picture of the future (what prospects brings with it the development of your project, what the investor and people in general will get)
- Powerful traction. For example, a profit of $ 1 million in 2 weeks after the launch will say everything for you (a positive reaction to the product and quick profits will certainly force the investor to consider your project).
When a startup "sold" its project to an investor, it’s time to mention your desires: what is needed, how much is needed, how the team plans to spend investments and what results it wants to achieve. If the investor by this time has ignited the project, the probability of continuing the dialogue will increase. And in conclusion a couple of tips:
- Do not try to tell everything about yourself. Do not tell the investor everything about your project. Enough short, but catchy information that clearly speaks about your goals. Brevity is the sister of talent, right?
- There is no universal secret of success - look for your own, but to learn, analyze what others are doing is always useful. This will help you avoid mistakes made by other companies, effectively develop your project, in the end, to find your investor.