When it comes to business funding, it’s worthwhile considering the number of younger generation stakeholders entering the investment arena. It’s estimated that as many as 80% of Gen Z are already investing, so if you’re pitching to them and to Millennials, you need to identify the tickers that’ll secure the financial backing you need.
You’ve found the niche in your respective market, you’ve tallied the figures progressively, and your business plan looks immaculate. Now, you have under 30 minutes on average to sell your idea. So, how do you get them hooked?
By getting them to watch your space and listen to what you have on offer.
These 10 tips are designed to connect with young and savvy investors in a way they identify with, improving your chances of securing capital for your business:
Before you pitch your business plan, ensure you know the answers to the following questions, and have tailored your presentation appropriately:
It’s of utmost importance to make sure you are up to date—if not ahead—of market research, trends, and targets before every presentation.
Follow-up on constant new developments in every sector of your business scope. Be creative about where you see your product going in the future.
Begin by introducing yourself, your company, and your product/service with confidence and enthusiasm. Then tell the story of how your product or service came to fruition.
Garner their interest by always being animated about it, whether it’s your first time presenting to potential investors, or repeating it for the umpteenth time.
Be proud of your product and consistent in your presentation. Use vivid imagery and language to engage them by showing how it solves a specific problem—or even better, solve a host of problems simultaneously. Elaborate on just how your intended solution can evolve from a micro to macro-level, given the right support. Assure investors you have the strategies in place as foundations to build upon and that the funding you receive will offer ROI.
The host of digital marketing platforms at your disposal are limitless. Facebook, Instagram, TikTok, and Twitter are all data mines that you can use to your advantage.
Use your tech acumen to illustrate exactly how you will make their investment succeed in the digital sphere. Create a connection that illustrates you know and understand how Millennials and Gen X communicate.
Use fresh, raw data as much as possible to get to the point succinctly.
Time is an investor’s most limited commodity, so opt for a short, punctual presentation as opposed to one that’s long and drawn-out. Stick to the facts and refrain from detailing your entire business plan into the presentation. Details and logistics can be discussed after you’ve won their approval.
Discuss exactly who your customers are and the size of the market you want to enter.
Put emphasis on your extensive market knowledge. Elaborate on what your revenue expectations are versus the prospective pre-tax profit margins for your first few years of operation.
Knowing how to calculate profit margin based on your research and being able to explain why you arrived at your final figures will showcase your market knowledge and research skills. Include possible eventualities that will enhance growth within this timeframe and state categorically how stunting or losses will be avoided.
Emphasize your competitive advantages by drawing comparisons of your product. This will be vital in distinguishing your product as a future market leader worthy of investing in.
Know what the future of your target market holds in both short and long-term projections by having consulted with trading experts. These resources can give you a good indication of how to determine future market expansion
Iterate just how returns on the expansion will benefit the investor.
Delve into the strategies you have in place that ensure your supply can meet both current and future demands.
Detail future marketing plans, sales executions, and highlight your goals.
List your current and prospective distribution channels.
State your risk management policies.
Introduce your team or business structure in an organizational chart, giving your investor a good idea of who and what they will work with.
If you’re planning on expanding within the first few years, include expected staffing requirements here too.
Highlight strong attributes and past achievements. This will allow you to pinpoint exactly how every facet of your set-up is crucial to your company’s successful future endeavors. If you can incorporate an element of corporate social responsibility here, do so. This is hugely appealing to Millennials and Gen Xers.
Conclude by crunching the critical numbers and summarize them to back up your projected output and profits. Disclose the capital amount needed for your business idea by referencing your major expenditures in context.
Make a point of showing how much of a difference your brand will make in the marketplace. Aim to counteract objections with steadfast resolutions. Let your investor know that you have all your—and their—bases covered.
Last, have all your research and information at the ready in case investors want to ask questions. In addition to your business plan, ensure you have addenda that cover extra points of interest, or further explain your idea. This is a surefire way of remaining confident and in control of your presentation.
By adhering to this outline, most of your investor’s questions should already have been answered. If so, they’ll have all the facts they need to make an informed decision. Give them room to deliberate, without making them feel overwhelmed, or pressed for a verdict.
And remember, practice makes perfect. Rehearse your presentation to ensure you come across as a professional entrepreneur that has all their assets and facets covered. This will ensure both you and your investors have confidence in your idea.