How to give Successful Presentation to Investors
First of all when you are
preparing to present your business to investors try to really understand
investors in general - how investors think and how investors make decisions.
This is the most important tip you need. In addition it is good to know the
people you will presenting to, so the more you know about them the better and
more effective your investor presentation will be.
You need to be aware that
different people see opportunities and assess opportunities based on their
backgrounds and experience. Every investor is different in a way however they
all like good numbers. Some investors want to own at least 15-20% of your
business while others have no limitations. Some investors invest in many
businesses and try to diversify their risk and there are also investors who are
willing to invest big money in only a few businesses they believe in. However,
investors manage a portfolio of investments and they can invest less or more in
your business depending on your business case, model and strategy. Investors
have to understand your business model and strategy and they make decisions
based on different criteria. For example, some investors will invest simply
because they trust your management team so even if you have an average business
plan they will still invest in your business. Some investors will put their
money only in the businesses where they know and trust the owners or management.
Try to understand what type of investors you are working with by asking
questions you should assess how conservative they are and what type of
investments they make.
Building trust is
important when dealing with investors. Would you invest in something
you do not trust and understand? If you do not know the investors
personally try to work with people who know them and get referred.
It is very different when someone has recommended you compared to
going on your own without any references. In building trust with
investors it is always a good idea to link your business case with
your past success or show some progress you have done so far with
business preparation and starting your business. Sometimes
explaining what you have been told by potential customers you
already have talked to can give you huge advantage. Pitch to
Impress: Impress your investors. Build a winning business plan.
Nobody is excited with average plans and businesses. Everyone is
looking for good opportunities and everyone is excited to be sold on
a good business idea. It's all about money and numbers so your
financial business plan is critical. Also pay attention how you are
going to present the management team section of your business plan.
The management team presentation can make a big difference. This
shows who will execute your business plan. You can have the best
plan in the world but do you really have good players who can make
it happen? Show growth potential and show that you know how to scale
your business in the future and try to use examples, cases and data
to support your assumptions and decisions. This builds trust with
investors.