Investors are not in the business of doing charity work. When you go to them and want their money, know that you will only get it if the product or service you are selling is worthy.
This worthiness only becomes visible with the audience and the market you are planning to infiltrate, the bigger the market, the better the chances of getting the investment money.
Here are three things to consider when approaching an investor:
GOOD PRODUCT VS MARKET FAVOURABILITY
In many cases entrepreneurs usually approach investors with great ideas and good products. The honest truth is that good products do not pay bills, when you are running a business you need to ensure money is coming in.
So when approaching an entrepreneur, come to them with a market and selling point in hand. Yes, your product has a market but will the market open up to you and buy from you? If your answer is yes, then show the investor how you will do this. Consumer are the hardest element that one needs to conquer when infiltrating a market, because if they are not receptive then that will mean you and your investor will lose a lot of money.
COMPETITIVE MARKET REALITIES
Competition is something that you cannot run away from. So when stuck in a competitive market become a competitor too.
Competition has removed good quality product from market because the entrepreneurs and the product could not withstand the pressure.
Show the investor you are pitching to your competitive market survival strategy. This will reveal to them that you are serious and are ready for any challenge that may come.
FINANCIAL VALUE IN YOUR PRODUCT
Investors care about how much money they will make out of your venture. Yes, these are business men not charity men. So show them your numbers and how these numbers translate to them.