Entrepreneurs are always brimming with grand ideas, dreams and have lofty ways to execute them. But, life is not a bed of roses. To start a new venture, you need a large amount of solid cash flow. Arranging for such a huge sum is quite a challenge. You need to drag yourself from one financier to the other showing your business strategies, thinking may be at least one investor would be fascinated by your plans and get ready to invest. Often such an approach can take years and yet bring unacceptable results. The venture capitalists have the power to turn a start-up entrepreneur’s dreams into reality.
To establish a business empire, you need funds and the venture capitalists are the right source to receive secure funding for your start up business. The finance statistical survey shows a rise of around 750 crores investment by the venture capital firms on the Indian business startups within a one-year span. So, it is completely justified to approach VC firms, provided you make an effort to make the right move at the right time. Venture capitalists seek business plans that reveal complete growth prospects.
So, what are the essentials that an investor looks for in a business start-up? Let’s look at the points below-
- Fewer Risks, More Returns– The financier always looks forward to businesses that show minimum risks and maximum returns. The instant results and potentiality of a business are the prime attention-grabbing factors before a financier decides to invest into any business.
- Clarity in Envisioning Your Business– The clarity of the potential entrepreneur’s thought makes a lot of difference. The venture capitalists need to be completely convinced that your ideas, products, and services are innovative and original enough to fill the empty space in the market and create a strong impact on the minds of the consumers.
- Strong Team of Visionaries– The venture capitalists ensure that your team consists of required expertise in management before deciding to fund your business. A united team of visionaries gives a perfect impression with a message that the business is on the right shoulders to achieve success.
- Display the Need of Your Product in the Market– While discussing your project with the potential venture capitalist; give them an idea about the market value of your products and services. The importance and the significance of your business in the market may be of interest to the investors.
Gaining the attention of the right investor
Here are the points that can help you gain the attention of the right investor-
- Mark Your Business Performance – It is vital to rate and judge your organization’s performance level when you need to grow your workforce and you are happy to fulfill the demands of numerous people who want your product or service. This is the time when you need the right investors who will be interested in supporting you financially in your start up. Give them the correct picture of your firm, highlighting your key features that make you stronger than your competitors. It is highly essential to support your ideas with the creative and unique presentation of your business plans.
- Your Area of Play Must be Well Presented – You must ensure that your business plan is presented with supporting facts, figures, stats, and surveys. The descriptive pie charts and graphs can add value to your presentation. A story weaved with complete information while presenting your pitch can grab the investor’s attention. The required documents comprise of-
- Market prospect
- Development Strategies
- Revenue Model
- Investment Aide
Reviewing your presentation is highly recommended for ensuring accuracy and attractiveness of the presentation and thus, finances approval.