As an entrepreneur, especially a relatively inexperienced one, the golden rule to remember is that the best conversation with an investor is one in which no convincing is required. This means having enough conviction in your own idea that you are able to relay its importance and infect the investor with your passion. Having said that, there are a few pointers one could use-
1.The Impression of A Winner
First impression often forms the last impression for most founders, created on the basis of the founder’s image. If the founder seems to be determined to win, the investors would want to focus on the positives of your idea than just the negatives. A positive impression fetches a positive, encouraging response regarding your idea. Be aware of the fact that you must be confident, and justifiably so. Confidence without the backing of a solid idea will take you nowhere but to the door.
2.Honesty is the Best Policy
The best way to appear confident is to be well informed. When you’re prepared, you’re less nervous, and during conversation, your passion for the idea automatically comes forth. If you’re pretending, it will be caught sooner or later. Hence, if you convince yourself of your idea, half the work is done.
It’s worth noting that those who have something substantial to say do not use flowery language. The same can be said for when convincing the angel investors. Not only is it vague, it can also be boring, adding negative marks to your standing or credibility, and misleading. Thus, when presenting ideas, make sure you know it enough to explain it in a concise and lucid manner.
3.Market Scenario
Though it cannot be predicted for sure which start up will succeed, one of the ways of evaluating the same is seeing the exiting market trend and judging your product viability accordingly. You just need to prove that your product has moderately good scope of creating waves in the market, not necessarily making promise of being the next billion dollar company. Ensure that you have a practical path that leads to either capturing the market you are targeting or creating one where you dominate a few years down the line.
Explain to your potential investors not only why this investment is a profitable one, but also why it is a profitable one now!
4.A Little Salesmanship
You’re only starting out, and it is quite possible that you have a few failures in the past, perhaps your current idea has not been creating the wave you had expected. When an investor raises doubt, take it as a test of your confidence and give an answer that is both honest and indicates a rising learning curve. You wouldn’t be standing before them selling your idea had you not believed in it for valid reasons. Bluffing them about your idea popularity is advisable only when you’re confident about pulling it off.
This makes your pitch both an art and a science. Base it on conviction, comparables and viability, and you’ll be raring to go!
