Every aspiring entrepreneur who wants to launch their business and get funding needs to know how to package and present a company to a potential audience and investors. A compelling presentation shows how well you understand your project and its development. According to Crunchbase, in 2021, startups raised $201 billion in investments during the initial stage of their launch. These statistics show that investors are interested in financing new projects and are ready to consider existing ideas. To get funding and successfully launch your business, you need to know what it takes to create an attractive presentation for potential investors.
What You Need to Do for a Successful Startup Presentation
Even if novice entrepreneurs have a brilliant business idea, this does not mean they will receive funding. More than 500,000 companies are created annually in the United States, but less than 1,000 per year may be of interest to venture capitalists. Therefore, to allow your project to develop and increase profits, you must prepare for a meeting with potential investors.
Deep Market Analysis
Most investors want to finance a project that targets a large market to allow the business to scale. To do this, startup founders need to analyze how many potential customers the product has, how much they can pay, and how their number changes over time.
In startup presentations, the market assessment is often underestimated or overestimated. This is because entrepreneurs do not have access to specific data or an experienced economist in the state. If you also face this task, pay attention to external sources with a good business reputation (reports of large analytical and consulting companies) or contact a specialist to confirm the statistics from the Internet.
Drawing Up a Financial Business Model
After successfully analyzing the market and receiving up-to-date data, you must draw up a financial business model. Again, you need to approach this task carefully since the investor is primarily interested in this.
Startup founders can build a financial model based on their assumptions and data, but the approval of a professional must support such a theory. It is an expert in the field of finance who will be able to create a competent model, which will include the following:
- competitive field;
- up-to-date market data;
- niche trends;
- realistic calculations.
Investors interested in the project will carefully check each conclusion reflected in the financial report. For them to be confident in the numbers and see the company’s future, it is necessary to have relevant specialists in your field.
Objective Assessment of the Team
The startup’s profitability depends not only on its owners but also on employees who work within the company. So during the project presentation, do not forget to tell investors about your team’s expertise:
- Whether they have already participated in similar projects.
- What successes have they achieved in the past?
- Whether they demonstrate creativity and initiative at the moment and so on.
The same goes for the startup owners themselves. Funders need to know whether they have experience building a successful business and leading a team, specialized education, and a reputation in the market. Add reviews from customers about yourself and references from past jobs to your presentation.
Following Digital Technologies
If you have decided to launch your business in 2022, then you are probably aware of the crisis. Due to the pandemic, almost all companies had to go online to avoid losing consumers. Since the decision to digitize had to be made in the shortest possible period, business owners did not have time to test their ideas and lost a lot of resources. The specialists found a solution that helps entrepreneurs try their concept in practice, attract a potential audience and show the product to investors.
MVP is a reliable way to test your hypothesis before funding the development of a full-fledged product. This software will solve the following tasks:
- correctly identify the target audience;
- check the functions that are in doubt;
- show gaps in development;
- mitigate potential risks.
Since each startup occupies its specific niche, MVP can adapt to any project. For example, Dropbox used a short video for its minimal viable product, where it told consumers how the future software would work. When the startup received a positive response, its owners created one of the most popular file hostings.
Sometimes companies spend years trying to prove that a hypothesis is wrong. A study by CB Insights found that a lack of market demand causes 42% of startup failures. MVP helps ensure that the product is in need or abandons an unprofitable idea on time. MVP helps ensure that the product is in demand or promptly leaves an unprofitable idea.
To test your ideas and get investment, you must create an MVP and implement your product or service’s essential features. This way, you will attract new clients and fund and earn money for further development.
Communication with Other Entrepreneurs
To prepare competitors and investors for the fact that a new product will soon enter the market, you must constantly be present in the circles of the same entrepreneurs and specialists in your niche. These can be forums, business accelerators, development programs, etc. This presence will help you learn about modern companies’ trends and digital technologies. It is a chance to meet industry experts and invite them to join your team. This experience will simplify the presentation preparation and introduce you to potential investors even before the launch of the MVP. Bringing the project to the market will be recognizable and get more responses than if you did not leave the office.
What Should Be a Good Presentation for Investors
Properly presenting your startup is an essential skill for every aspiring entrepreneur. Through this skill, projects find investors, attract co-founders, select excellent staff, and, ultimately, bring their idea to perfection. A good idea presentation will include the following points:
- Startup name and logo.
- Problems and solutions.
- Description of the value.
- Competitive advantage.
- Business model.
- Marketing plan.
- Analysis of competitors.
- Leadership and team.
- Financial forecasts and critical indicators.
- Current status: achievements, timeline, capital consumption.
A good presentation should concisely summarize the investor’s most important data. Therefore, the defining characteristics of a good presentation are brevity, a clear description of the benefit, a vital visual component, and many facts.
Use a minimum of text support to present your project to potential investors to end with a successful deal. Instead, add specific numbers, product or service visuals, and infographics to your slides. Remember that information during the report must be structured and not overloaded with unnecessary details.
To stand out from other funding candidates, you need to collect all the relevant data regarding your business in advance and test the product or service with potential customers. It will show investors that you are committed to further development and scaling of the project, and with a high probability, you will be able to bring them the profit they are counting on.
Featured Image Credit: Photo by RODNAE Productions; Pexels; Thank you!