By Matthew Harrison
Entrepreneurs who want to raise finance for their business will have to begin with an outstanding business idea in order to convince their investors to raise finance for them.
You should not focus on one aspect only. Entrepreneurs need to understand what the investors really want, especially if you are into venture capitalism. Here is a T.I.P. for you: You need to have a TEAM, an IDEA, and a Business PLAN.
1. Your TEAM.
The best business ideas come from a team that can execute the plan and actualize the goals. You can have greater convincing power if you have a talented, experienced, and team instead of being a lonely entrepreneur.
You should also consider your team members to have some form of financial commitment. In other words, you should consider family and friends as your first investment pitch. Investors simply want to know that when the hot, steamy stuff hits the fan, each of the team members have more to lose than just their time spent and energy.
2. The IDEA.
Investors in Venture Capitalism are looking for a sure return on their investment that is substantial enough to compensate for the many other losing ventures they will back. Venture Capitalism involves high risk of failure especially for start ups, and they want to hear a business idea that shouts significant growth potential.
You may want to ask yourself, is your business idea big enough? Can your idea be turned into a franchise? Or, Can your idea last long enough to be a license, Can you find ancillary products or strategic partnerships for your new product idea?
3. Your Business PLAN.
Entrepreneurs should be able to give a detailed and smooth presentation of how the IDEA will become a business opportunity that is worthy of investment. Lay out a clear strategy of how you and your TEAM will actualise your current strategy. Make sure to demonstrate your knowledge and capabilities in the market.
Always remember that you don’t have to be alone in venture capitalism. You can start by contacting the investor directly and inquiring what they want to see. They can give you priceless recommendations during your initial meeting.
You also have your friends, family, fellow entrepreneurs, and mentors who would be willing to listen to you, advise you, and give feedback as you gather your TEAM, develop IDEA and formulate PLAN.
These people and the T.I.P. can help you decide whether to push or pass on the investment. You will get the chance to refine your approach and be ready to finally deliver your pitch.