What Are Investors Really Looking For?


We all have ideas. Some of us are looking to take those ideas and create a business from them, and many of us finding ourselves sitting in front of investors trying to gain their support for our business ideas. The idea of this has become so common and popular that there are TV shows dedicated to entrepreneurs sitting in front of
investors to pitch their ideas.
 
While some ideas might be crazy and unprofitable, many are fantastic and have the potential to become a viable and successful business model. So why don’t we all get capital when we are looking for it? Is it because our idea is terrible?
 
More often than we think it is not because of a bad idea but because of a lack of proof that our idea will be executed into a strong revenue model.
 

The Next Big Thing Is More Than a Good Idea

 
Investors are looking for a return on their investment. Their decision is based not only if they think you’re product will sell but if you have a proven plan to sell it.
 
This is where the routine business functions come in such as finance, marketing, sales, manufacturing, and others. Without these success is basically impossible. Not only should plans be made of how to start your business in these aspects but how these will run from a day-to-day operational standpoint down the road.
 

Show Investors How Your Product Will Reach Consumers

 
When we find ourselves in front of investors our first instinct is to spend all our time selling them on why people will buy our product. Is this a bad thing? No. Is it all we should cover? No way. Not only should we show them why people will buy it, but we should show them how our product will reach those consumers. Many sells pitches lack this very important element in the eyes of the investor.
 
During this time explain to them your revenue model. Include channels through which people will buy your product such as personal stores, other retail outlets, or online. Include cost structures of procuring and shipping your goods and how your pricing strategy will still bring profit. To sum this up, investors need to know the why and how people will buy your product.
 
As we started, we all have ideas which can turn into a profitable business. Initial failure does not necessarily mean we have a bad idea, it may just mean we need to refine how we execute. Taking the time to clearly outline an execution model will lead to more investors taking our ideas seriously and more consumers buying our products.

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>