Finding the money that you need to get your business going is the first big hurdle you’re going to face. The best way to find the capital that you need is to approach investors and convince them that your business is worth putting their money behind. But that’s no easy feat because they need to be confident that they’re going to see a return on that investment, they won’t just throw money at any company. There are a lot of ways that you can convince them of the potential of your business, but there are also a lot of things that will make an investor switch off right away. These are the things that investors hate to see in your business pitch.
A Lack Of Numbers
It’s important that you build a story around your product and talk to investors about how it will improve your customer’s lives and why people will be tripping over themselves to buy it. But that’s only one part of your pitch. You also need to show that you have a good understanding of the numbers and you can give them a concrete forecast of how many sales you expect to make and when they can expect to see a return on their investment. If you can’t provide that information, they’re not going to be confident that you know what you’re doing. That’s why it’s important that you’re thorough with your financial projections and cost analysis of the business. Investors are going to probe you and ask questions about things you missed, so make sure that you’re thinking about all of the unexpected costs of business that you might have to deal with. As long as you cover all bases and you’ve got an answer to all of their questions, you’ll inspire confidence in them.
A Lack Of Experience
It’s so hard to start a business without good experience because there are so many different aspects of running a company that you need to understand. Having a good product idea is a start, but if you don’t know about the nuts and bolts of running a business, you’re not going to get very far. Investors will always ask what your business background is and what makes you think that you have what it takes to run a successful company. If you don’t have much prior business experience, it’s worth doing an accredited online mba program before you seek investment. You’ll learn how to handle the day to day running of a business and it shows investors that you understand the intricacies of running a company and all of the challenges that brings with it.
A Lack Of Competitor Analysis
It’s fine to tell investors how great your product is and how well it has been received by test audiences, but what about your competitors? What sets you apart from other companies in your industry and why will customers come to you instead of them? If you can’t answer that question, investors are going to run a mile. That’s why it’s so important that you conduct thorough research beforehand and identify the things that make your company different.
Any one of these things will really put investors off so make sure that you’re avoiding these mistakes.