4 steps to convince an investor of your business idea

  • We share some steps that will guide you to successfully present your project to the right people and of course convince them to invest in it.

steps to convince an investor

Whether you are starting a business venture, a foundation or an idea you have in mind. Most likely, in order to make it a reality, you will need capital that is often not available beforehand.

The good news is that very rarely does the money come from the same person who had the idea. So if you already have a good project in mind, it's up to other people to do the financing. Of course making this happen is not an easy task. It requires a lot of effort and convincing power. Here you can learn 3 ways to influence people.

Below you will find some steps that will guide you to successfully present your project to the right people and of course convince them to invest in it:

1. Tell a true story

For a entrepreneurship have a hook, it is necessary that the creation of this helps solve a problem. I am not saying that the problem should have the magnitude of terrorism in the world or an epidemiological crisis (although I do not rule it out). But it is necessary that the company is dedicated to solving a problem or correcting a need for a group of people.

When you are going to present your project to investors, start by talking to them about this problem, explain it in depth but don't stop there, tell them that there is a solution and also how did you go about arriving at said solution? How did your thoughts and actions – and those of your work team – lead you to develop that great undertaking that you have at your doorstep? How has your experience been, what have been the main things you have learned that make you stand out? What has been the metamorphosis of the project from when it was just a crazy idea in your head until now?

Tell all this in the form of a story and personalize it as much as possible, so the people who hear you can feel identified. Furthermore, when you tell a story, people usually imagine the scenarios little by little, which will make them pay more attention and subtly lead them to your side.

It is essential that this be original, innovative and creative, leave fear aside; Rather, feel lucky to be able to share your great idea with others who, with their resources, will be able to make something extraordinary a reality.

Show the evidence

Don't let the people you're talking to think you're a charlatan when telling a story, the interesting thing about your story is that it's peppered with evidence of what you're saying. Show results from market studies, surveys, a website, if you have a prototype it is time to show it.

Showing everything you have worked on – that is relevant and forceful – with respect to the project will give you credibility with investors since you are showing them the fruit of your effort and that you are also willing to work for what you believe in without making excuses.

3. Demonstrate that your project is profitable

The theory of your venture may be wonderful, but remember that paper can last a long time and that in reality what investors are looking for is a profit for each bill they pay. It is a win-win relationship.

This means that you must have a plan that guarantees at least the return of your investment (plus interest). Lean on someone on your team to make a solid business plan that consists of phases and present it to interested parties. This way they will know what the investment amount is for each of the phases, which will also make it easier for them to make the decision to trust.

Talk up front about the amounts you need, it's not about being pretentious but rather realistic and talking about money is not a taboo subject. If you think you're still struggling, check out these tips to heal your relationship with money in Gananci.

4.- Be safe

When you demonstrate genuine confidence in your project, you will be able to transmit it to the people you talk to in the same way. You can have the most profitable business idea and tell a wonderful story worthy of a Hollywood script, however, if you do not show confidence when presenting it, you will throw everything away. Investors will notice your doubts and this will make it even more difficult for you to convince them.

Keep in mind that no matter how objective people want to be, emotionality is always present so let your personality also come out, don't be afraid to show yourself how you are to them. When you are transparent, people notice it and will be more likely to trust you.