Pitching your company to angel investors or venture capitalists can be intimidating, especially when the fate of your start-up small business rests in their hands. In preparing your presentation, keep in mind that angels and VCs are essentially looking for five key ingredients in your business plan.
1. Market Size
Investors will want to know how large the market is for your particular product or service. You could have the best idea in the world, but if there is a very limited number of people who could possibly patronize your business then your product or service will never have the potential to make a lot of money. And the potential for great profits is the bottom line investors are watching.
2. Market Need
Once you have shown the angel investors or venture capitalists that there is a large enough market for your business, you need to prove that there is a real need for your service. Does your product or service truly offer something that the market needs, something that could significantly improve on or add to existing options?
Investors will want to know who your direct competitors will be and how many there are. Are there already companies that dominate the market in your specialty? If so, you need to show how you can outdo your competition to become the front-runner.
4. Profitable Business Strategy
Your business needs to have all the right parts and pieces in place to make money. Investors want to hear about how you are going to keep your overhead costs down, how you already have the perfect manufacturer for your product, and how you plan to offer a faster servicer than what is available. They want to know how many employees you have or need to be efficient and quickly so your business can start turning a real profit. How are you going to run your business so that it can become a smashing success?
5. The Right Person
Finally, investors are looking for the right person for the job. They want to see that you have the drive and passion to put your ideas into action. They want to know that you are driven and will work tirelessly to put their money to good use. You have to sell yourself as part of the investment.
If you can distill your business pitch into these five basic elements, you should be able to secure the funding you need to thrive.