7 Things Investors are Looking for before Investing
There are many things investors are looking for before they decide to inject funds into your company. Funds are important for startups. For those of you who have a startup, it’s important to pay attention to a number of things to attract the attention of investors.
Investments from investors become very vital for a startup. Increased investment, the company’s valuation can also increase. Therefore, startup businesses compete to showcase their startup’s strengths to attract investors.
Well, it turns out there are some important points of investors as well as their consideration before investing. Investors do not necessarily invest in your company. They will consider several things before investing. If they do it recklessly, they could lose a lot of money.
WeWork was one of the infamous cases in 2019, where Softbank as their investor had to undergo a big loss. No investors want to go through the same path. That’s why, as a startup owner, you have to understand what investors are looking for at your company.
Things Investors are Looking for from Your Startup
1. The Existence of a Work Team
Building the best teamwork coupled with outstanding products is a way to build a good business. This is the main key if you want your startup business to be looked at by investors. Even more important is how to make investors able to believe in the work team that you have made that has a great commitment to the success of your business.
With the choice of a good work partner and a compact work, the team will have a business foundation that will be successful in the future. In this way, investors will no longer hesitate to secure capital in the business that you build. So if now your business is still being a single fighter, you should consider immediately forming a team and bringing in investors.
2. Know What Investors Want
If you have targeted which investors would you like to invest in the company, make sure you know what investors want. First of all, you can start by studying the target business investor. Learn what they want, what kind of company they usually associate with, what policies there are going forward, and so on.
After you are ready with everything that they find interesting, then you bring in the investors. Please discuss if the company is ready to get more funds.
3. Have a Selling Value
In this case, don’t just talk to one investor. Because the opportunities you can get are very broad. Dig deeper into other investors because there are still many opportunities you can get. But, please note that new players must look for investors who are in accordance with the business that has been developed before.
4. Have an Attractive Product Prototype
Make the prototype as attractive as possible from the side view. After they are impressed with the appearance, also complete with an explanation of how interesting the product you make. A prototype that is made with a clear explanation will also make investors interested in going into business and accepting your business ideas.
A prototype can be made in various forms such as videos or images with clear and attractive designs. If you do not have the expertise to make an attractive prototype display, ask for help from experts who help to make Prototype.
5. Product Test to Consumers
The next factor that determines your idea or business can get an injection of funds from investors is the product test results to consumers. So before you present in front of a potential investor, make sure you first try it on consumers.
New products that have not been tested will cause investors not too sure about your business products. They need to see concrete evidence that your product will sell in the market.
Test results can also be an evaluation of the advantages and disadvantages of the product before it is presented to investors. In addition, this test is also a form of support from the prototype that you have made whether it is feasible to offer to investors or not.
6. Other Business Supporters
Business support is a means to keep your business running well. This is one of the features that you use to support the running of the prototype that you created earlier. For example, if you are engaged in selling goods, you can create business support in the form of an online store or join e-commerce.
Prove that your online store is running well and already has customers. Like consumers who like clear products, investors prefer businesses that are running rather than still in the form of ideas.
7. Monetize Your Business
Monetization can be said to be a way to make your business generate a large income. If consumers’ appeal to your product is good, monetization may no longer be needed.
But, try to monetize your business so that investors will have an even higher interest in investing in your business. Investors will see how you manage and grow the business so they will trust to fund your business.
Another Important Thing that should be Considered
For those of you who already have a business running, then the next step is to make an excuse that will force investors to fund the development of the business. Development here can be interpreted various things ranging from the development of the number of products, equipment, to the addition of the number of stores.
You also have to make the appeal of your product by presenting a unique product that is different from other competitors. Advertising can be an attraction with free or paid advertising. Maximize a variety of free online media to create product advertisements.
In addition, it is important for you to use a style that convinces investors that your product is indeed worthy of being marketed and developed. One way to do this is by presenting material that makes you appear fully responsible and in control of the business.
This is where the importance of a pitch that will ensure that investors easily trust you and believe in you that your product is indeed profitable. That’s the important things investors are looking for before they decide to fund your startup.
(Read also: 6 Levels of Startup Valuation that You Should Know )