Once you have an idea at place, you need capital to get that idea out of the gate, to the consumers. This is where investors come in. But, it has been observed that entrepreneurs all around the world often end up wasting most of their time pitching to a number of investors to a dead end. This is because a majority of them go directly into action without proper planning or homework. In order to help young entrepreneurs save that time and pitch for perfect results, we at IndianWeb2 have come up with a list of 10 qualities that investors want to see in a startup. Although each investor is different from another, but these ten umbrella points will surely get you a head-start on your pitch.
1) Make Sure You Know Your Market Well
While it’s obvious that our ideas sound perfect to us, but one needs to make sure that there is actually a market out there which needs the product/service that our startup is offering. Further, an entrepreneur needs to be aware of its competitors in the market, the problems they’re facing and the customer base they’re dealing with. While getting inside an already crowded market is not recommended, on the other hand, zeroing on a niche that no one cares about is almost rooting for one’s own failure. Hence, know your market, your competitors, your consumers because this is what will decide the future of your startup in a long run.
2) Is Your Startup A Game Changer In Its Field?
One of the sure-short formulas to success is to make a product/service that proves to be a game changer in the market. If you’re one of those, there’s no one stopping you from getting noticed and climbing to the top of the ladder. Instead of you going to the press, the press will come to you and give you your due. And once the press is there, investors are surely going to find their way.
3) Understand How to Run Your Business
Having a great idea and running a great business are two different things. So, if you do not have any business background, it is recommended you take a short online/offline course for the same. As an investor would want an entrepreneur to have some basic business acumen before they give them their money.
4) Quality of Character
More often than not, an investor might not necessarily invest in the company or the idea, but they would invest in an entrepreneur. A great entrepreneur with the right capabilities has the power of making an ordinary idea extraordinary. Before giving their money, the investor wants to make sure that the entrepreneur shows sincerity, commonsense, trustfulness and a zeal to toil to reach to the top.
5) It’s Not Only About the Product!
Being an entrepreneur seeking investment, you need to understand that it is just not only about the product or service you’re offering. An investor typically sees the product, the global market reach or distribution it can attain and the differentiation of the business through the quality of it’s people. If you don’t check on all the aforementioned three boxes, the investment road might be a lot difficult for you.
6) What Unique Skills You As A Founder Have To Offer
While your idea has to be unique, you as a founder also need to do show the investor that you have what is needed to make that idea as big as possible.
7) Stay Focused What Come May
While there are a lot of parallel things going on when you’re trying to take your startup off the ground, you need to make sure that you dedicate most of your time on your product and service as that is what your selling. As an entrepreneur, you should learn how to deal with distractions and stay grounded.
8) Bootstrapping Successfully
If you have successfully bootstrapped your startup, it shows the investor that you have the ability of making sound judgments and will make good use of their investment.
9) Plan B
An investor would like to see that an entrepreneur has an ability of planning long down the road. This means, in addition to the plan A, he has a plan B ready for every scenario that he is looking to venture in today or in the future. A well-planned entrepreneur gives an investor a lot of confidence.
10) Communication Is the Key
While we cannot expect everyone to have good communication skills, but if you’re entrepreneur looking to make it big, communication is kind of a pre-requisite. You might have an excellent startup, idea, product or team but if your communication skills fail to get those ideas across the table, it is all for nothing.
The above content was originally published on Equities.com by Gary Bizzo