When pitching your startup, it is important to know that what you refer as your attributes would be weighed.
Whether as an idea just conceived or a solution proscribed and thriving, at every point of growth, and at whatever heights, your startup will be weighed accordingly.
The following are focal points to dwell on when pitching for funds.
Your Strategy and its Sustainability
Due to the rise of different businesses, it is important to paint a picture of your company to investors.
The investors would like to know what is different about your company, what you have to offer, how you intend getting across to your target market or if you would just be another addition to what is already obtainable.
Let investors know what makes your business different, the strategies you intend to adopt plus how you intend sustaining it.
This will help investors decide whether or not their investment would be worth it. No one would definitely like to invest in a business with a likelihood of failure.
What makes the difference could be your price or packaging, be sure to make it known.
Your Team Members
Who are your team members? Are they trained to function in a position? Are they top talents? Your investors should know your team members and your ability to recruit top talent for the job.
You may not have started your output yet, but having the right hands is a significant criterion for your business success, hence investors are interested in knowing. It is an added advantage that encourages investors to support and fund your business.
Your Model of Business
Will your model of business foster good returns? Don’t forget money is the oil that greases the wheel of business.
So how to make money or earn a profit from the business should also be part of your pitch presentation.
Money has a way of adding value to your growing business, without which growth might be extinct.
Hence, you are required to show how the business will make money and at what margin. It is wise to understand the margin structure of other companies in order to know what to or not do.
Thriving companies and investors are more about the finances. So public investors will look out for the possibility of expanding margin and profit growth.
As a new startup, the investors are more concerned about your target model and how it would propel your business growth to break even.
Target Market Size
Investors will like to know if your business has potential for growth in the market. How much growth you can attain in the market is a determining factor to get funds for your startup.
Try not to segregate your market, as there is currently no certain market size, so focus on your total addressable market (TAM), that is, the total market demand for your product or service which is determining factor for the total amount of revenue you can generate by selling your product to a specific or segmented market.
You can size your market “bottoms-up” or “top-down” to analyze your assumption as reasonable or not.
These, according to an experienced investor, are what Investors like to know about your startup when pitching for funds.
Make your presentation around them, you speak your investor language and win their heart, or do we say money?
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