Being an entrepreneur today seems to be the coolest label you could ever have. Two decades ago, that was not the case. Before, building a business favours the elites. It’s for those who have money and fame already. But the tables had turned. Startups are making a name by pitching their ideas and anybody now can be an entrepreneur.

With the help of social platforms that entice its spectators with branded imagery, a global reach becomes possible. Brands through word of mouth or should I say type of the hand becomes so easy.

This makes it handy for investors to research on which start-up company to finance. You see, if a product makes it through the hustle phase, it will get filtered out from the pool of wannabe’s. From then it may become a brand that people rely to. A company emerges as it flourishes and if it is resilient enough, an empire may slowly get built. The question is, what do they look for in a start-up? Let’s look at what gets these investors convinced.

Investors are actually a business strategy you call the “OPM”, or the “Other People’s Money”. If you have attended free financial education seminars you would encounter this specific acronym because it is an option for any starting company to consider. But let’s get reminded. They give the capital that you need in starting up your business in return of having shares respective to their consolidated investment. This is how huge companies get solidified at first when they were once just an idea. An entrepreneur builds it into a business model and then plans how to work around it with a team. Establish this then it’s time to get big fishes. It’s time to pitch.

How should you get your pitch ready?

1. Firstly, know your product frontal and backwards, inside out.

   You should be able to convince yourself to actually avail of what you are offering. If you could guarantee that the investors would find your product a necessity, they might just believe you or your idea that they would be willing to invest. How can you make it the product! Determine its benefit towards the consumer and not the worth of their money. Because if they don’t find the benefit in it, they will not buy it no matter how cheap it is offered and whatever additional

   

   features it may have. On the other hand, if the benefit was met, they would be more than willing to pay to have that product or service. Focus on the benefit it gives above all else.

2. Gather as much data as you can.

   Investors will be asking about so many stuff like your Venture Capital, Gross Merchandise Volume, Burn Rate, Pre-valuation, Dilution Terms and Conditions, Demographic, Profit and Loss Sustainability. Those words had made your nose bleed just now? Then start getting familiar with these. The earlier the better. With the technology now, information is available in no time. Have a feasibility study of everything. Plan milestones for your expectations for the company. This way, you could entice the prospect investors of the progress you’re aiming to achieve within and for your company. Then they would know the idea is not stagnant and so is their money.

3. Understand your consumers’ behaviour.

   Be a keen observer. Nowadays, people’s eyes are all on their mobile phones. And it’s usually because of three E’s: entertainment, eats and escape. Most of the people follow only these three things. If you are itching to say also fashion, understand that it actually falls under escape. When you dress up, you can escape from your usual self. Travel, you know where that falls under as well. This is important because most often than not, you see stuff on media (MTV’s, Polyvore, Pinterest and concerts) that you want to buy for yourself. And so your pitch should be able to pitch a hook for the majority that’s on the social media. State your plans on your products advertisements, affiliations and social capacity.

4. Give room always for suggestion.

   The investors that you want to convince have had a lot of people pitching to them that’s why they are where they are. So experience wise, you can never fool them and it’s a waste of time being arrogant about the whole thing. For all we know, maybe somebody had thought of the same idea you have in mind. So, if they ask for consideration in some additional features like the social aspect of your business idea, hear them out. If you are challenged and bombarded with questions, it’s not because they don’t like it or that they are loosing interest.  It’s because they see potential in it and that they think it’s pretty flexible and expandable. So, just be open minded and give some room for the experts’ opinion and suggestion.

5. Capture them within 60 seconds.

   Imagine this huge investor that you’re eyeing accidentally popping in the elevator you’re in. With the fast yet intimate encounter of a ride with him, will you be able to convince him during its entirety?  Would you be able to convince him within that time frame to listen further? It could be through a groundbreaking invention or the system of all systems that you can do that. But the point is, if you cannot do an elevator pitch, then you don’t know what your company is about. Then there’s nothing to invest in.

Remember, if your intentions are noble, it will surface and they would feel it. If you are coming up with a solution for a problem that wasn’t even there in the first place, you’re delusional. But if the benefit was set correctly, you’ll benefit from word of mouth. And that’s always the way to get known.