Strategies Entrepreneurs Can Use To Procure Top Investors

Introduction

If you're an entrepreneur, the process of pitching to investors is a lot like the dating world. You only have a limited time to make a good first impression and convince them that you're worth taking on a date. To do this, you need to understand what they're looking for in an investment opportunity. If not, then it's very likely that your pitch will fall flat or worse yet, be rejected entirely by investors who can't see past your idea or business plan.

Investors Are Interested In The Team, Not Just The Idea

As an investor, you want to see a team that has the skills and experience to execute. It’s important to have a good balance of skills within your team. If a member of your team doesn't have what it takes, they could negatively impact the success of your startup. You also have to make sure your team works well together as a group.

They Want To See The Balance Of Power

The investor wants to see the balance of power is in place. They want to see that the entrepreneur has control of their business and can delegate tasks and responsibilities, manage their time effectively, communicate well with their team, and so on.

They See How You Handle Their Questions

You'll have to show that you can handle tough questions and that you're not afraid of them. The investor wants to see how you react when they ask about your biggest weakness.

They will also see how much time and energy it takes for your team to come up with solutions for problems large or small. You will be asked if there are any projects or ideas that don't get funded because there's no time/money/staffing available. You'll be asked where the money comes from—if it's from grants or loans or angel investors; what happens when one source dries up; how do things change?

They See How Are You Building Your Network

The best investors will want to see that you have a network of people who can help you achieve your goals. They want to know that you are building relationships with other entrepreneurs, and they are looking for people who can give advice or even just provide moral support when things get tough.

It’s important to note that this isn’t only about influential people in the industry; it’s also about networking with friends and family members who may be able to help out as well.

They Want To See That You Know Your Competition

If a prospective investor asks you about your competitors, it’s clear that they want to see that you know what you’re doing. They want to see how well-informed and prepared you are. So if they ask, “Who are your top three competitors?” or “What do their strengths and weaknesses look like?”, be prepared to answer confidently with the most thorough response possible.

You should also try to take this opportunity to show off your knowledge by asking questions yourself: “What do their business models look like? Their financials? Their marketing strategies? Their sales strategies? How many customers have they gotten over the past year and where are those customers located geographically? Who has invested in them before me so far (if any), and what is their capitalization table made up of (i.e., who owns what percentage)?

They Wonder How You Will Use Their Money

When investors are deciding whether to invest in you, they want to know how you will use their money. It's a big part of the decision-making process that they use. They'll want to see that you have a clear vision for your future and know how your business will grow over time.

This means that if it's an early-stage startup (such as an idea), be prepared to give them a solid plan for what you're going to do with their money and how long it will take before it pays off.

They're Looking For A Great Storyteller

As you can see, storytellers are crucial in all aspects of life. They’re the ones we look to for inspiration. They make us feel like we can do anything and be anyone—and they make the impossible seem doable. In the business world, a good storyteller can take an idea that seems completely crazy and make it sound like a sure thing.

They also have a way of making investors feel like they’re part of the team. Hearing someone tell their story makes people want to invest in them because it feels like they are on your side, fighting alongside you as an equal partner rather than just being paid off by money alone (although that helps too).

Turn A Question Into An Opportunity

An investor will ask you a question. You must turn that question into an opportunity.

How? That's the million-dollar question (I’m sorry). While there's no guaranteed way to do this, I have found that it helps to ask questions back at the investor, ask for clarification on their questions or just say something like “interesting point” or "that's interesting."

How Do Investors Weed Out The Great Entrepreneurs

They look for certain traits, and if you want to get their attention, you need to show them these qualities.

• You must be able to solve problems. If you can't demonstrate an ability or willingness to solve problems, why would an investor invest money in your company?
• Investors want to see that your team is strong enough and has good chemistry together—they're looking for people who are passionate about entrepreneurship and will work hard together as a team.
• You should also be building your network so that when it comes time for fundraising or recruiting new talent or customers, you have connections at hand who can help out with those efforts.
• And finally, an investor wants to know what competition there is in the space where your startup operates—the more competitive it is (for example: if there are already fifty other startups doing something similar), then the harder it's going to be for yours too succeed because there just won't be enough funding available, but on the other hand, if no one else has ever tried doing this before then maybe now's not such a bad time after all!

Conclusion

A good investor should be able to assess the potential of an entrepreneur quickly, so they don't waste time on people who don't have what it takes. However, it's not just about finding the right person; investors also need to keep up with all the new trends and technologies that are emerging every day. So what do they do? They find ways to learn more about these topics while still making sure that their core business stays strong as ever! if you find this newsletter helpful to attract more investors, i would encourage you to read my other newsletter having tons of information on entrepreneurship.