Despite having developed a great product, you need to realize that attracting investors is an entirely different story. In other words, it’s not going to happen, unless you do a fantastic job at convincing them there is a hungry market for it. Since you can’t present any sales figures at this point, the task may prove to be quite the challenge. To help you along the way, we’re going to reveal 5 clever ways to convince them that you and your product are, in fact, a great catch:
- Show your social media following
If you have one, that is. Otherwise, the time to start building a social media presence is now. In any case, demonstrating that you have a huge following on social media will let the investors know that there’s a buzz around your brand. Any astute businessman knows that there has to be a reason why so many people are following you and willing to listen what you have to say.
- Remind them their investment is going to pay off
Investors are willing to give you their funds because they expect to get a return on their investment. Sometimes, it really is that simple. Therefore, you need to come up with a way to make them confident about their decision to back you; after all, they’re taking a risk. Your task is to clearly communicate what’s in it for them, and the simple way to make a smart presentation about your product is often the best way to go. It needs to be coherent, informative, and straight and to the point.
- Utilize online fundraising platforms
Thanks to online funding platforms, finding an investor has become much easier, since they allow you to be independent from your physical location and still get in touch with people who could prove to be of great aid to you and your business. While it’s entirely possible to get your product funded right then and there, that’s not the only way these can be of use to you – if nothing else, utilizing them is a way to generate interest. And once you do, you will be able to reach out and present stats and metrics to other potential investors outside the platform.
- Present your market research
Hopefully, you’ve completed this step prior to undertaking the development of your product; you want something that’s almost guaranteed to sell if at all possible. This is identified by studying what’s already out there, what people are buying and what they want to see. Now, you need to bundle the information you’ve gathered and push it in front of your potential investors, all while explaining how you’ve taken it into account during product development.
- Be transparent about the funding you need
State exactly how much you need and what you’re planning to use the resources for. What percentage is going to go towards marketing, recruitment, and so forth? The more specific you are, the better. Define some concrete milestones and explain how the funds are going to be spent along the way. Outline the steps you’re planning to take and don’t focus so much on pitching your general business idea.
With perseverance and a little bit of luck, these strategies should help you get the results you want. The most important thing to remember is that you should allow enough time for investors to notice you. In the end, good things come to those who wait.