5 ways to prove to investors that your idea is investment worthy

Crowdfunding is a very popular way of raising money for your start-up because it can be fast, it can help to build brand awareness and it can allow you to grow your customer base whilst you are rising the money. But how easy it is to persuade potential investors to invest?

In today’s blog, we will give you 5 ways to prove to potential investors that your idea is investment-worthy.

1. Prove to potential investors that a market for your product or service exists by utilising social media. Set up your company’s social profiles and start building them up in order to get initial traction. Share useful articles related to your product or service and engage your audience by asking for feedback. you are more likely to attract investors when you have a well run social media and networking accounts with high-quality content. Gaining high numbers of follower engagement on your post output across all of your social media platforms shows potential investors that there are genuine interest and a customer base for your product/service.

2. Build your email list. An email list is the most valuable marketing asset right now. Start collecting email addresses from everybody that has ever expressed interest in your product or service. Create a landing page with an email opt-in and run a google ads campaign to get new subscribers and to see how much demand is there for your product. A good number of subscribers provides proof that demand for your product exists and also provides a basis for a successful crowdfunding campaign or product launch later on.

3. Prepare your investment summary. An investment summary outlines your story, value proposition, target audience, routes to market, client relationships, revenue streams, key activities, partnerships, the team, competition analysis, financial requirements and future plans. This will give the investor an opportunity to understand what you are trying to do without having to go through your entire business plan.

4. Know your exit strategy; as a start-up, you probably don’t want to be focusing on what happens after your business has come full circle you just want to launch. However, many investors want to exit after a few years and look around for new opportunities. So what are you going to do? Know the options for you and your investors!

5. Prepare your 1-minute pitch. As an entrepreneur, you should be always ready to deliver a clear and professional elevator pitch. You do not want to have finished your pitch thinking “I should have made time to make it more clear and concise”. If you know that there are very real potential weaknesses be completely transparent about them, whether they lie with your product/service or the risks involved in your entry market, your audience may even hold solutions. Be honest about where you are. Any embellishment will be detected by experienced investors and could potentially ruin any trust that you have built for yourself and your brand.

In summary, know your facts and figures, be yourself and be honest in order to let you and your product shine!