Anyone who has seen the show “Shark Tank” would believe that presenting your small business or idea to investors is a high pressure event where the future hangs on their decision. Unfortunately this is often quite correct and many great ideas get squashed long before their future could ever be realized. Most first run ideas in fact die the first time they are presented and often find success later on when someone else takes the same idea, spins it to a different liking, and represents it to a more favorable investor audience. Investors are often rather picky and examine every small detail of your proposals as well as you personally. Many proposals often die simply because of small mistakes often made by the one asking for the investment. Here are a few examples:
- Not having a solid business plan or believing your product or service is so good you don’t need one. Investors want to see a plan and it had better be as good as you think your idea is. Investors want to make money or at least put their interest in a quality idea they believe will make money. You as the business owner or potential owner need this capital and should make every best effort to ensure that you have your financials, statements, and your business plan ready to present. Not doing this will ensure you get no as an answer.
- Understand that your idea will often survive and make money without you at the helm of the ship. Many investors often have their own business ideas and plans for your product and just simply need you in a more creative role. They either may want to run the business themselves or use someone they already work with. Understand that you can negotiate yourself a good position and still make money from your product or service while letting someone else develop their own plan. Let go of the ego and let someone with a better vision for your idea make money for you.
- Stating that you have a niche that nobody else knows and therefore it’s a sure fire winner. Investors know that once you hit the market, you have a short window to capitalize on opportunity before others follow suit and become your competition. Investors know you can fail and simply want a solid plan on how they can profit from your idea. Don’t get too caught up in believing you won’t have competition, perhaps even from much larger entities that can do it cheaper.
- Do not ever state to an investor that you have no need to invest your own capital. Investors want commitment from you that you will put your money in the pot too rather than just rely on them to do it for you.
What we at ProDSLLC offer you is the chance to get funding for your idea or business, as well as the proper advice on how to properly put together a quality business plan. We offer quality business services as well as the best resources for your funding needs, which only apply to you. We can get the funding for your idea so you don’t face the shark tank of private investors alone.