Vitality Blog
How to speak the language of investors
We know first hand how finding investment can become a demoralising process. Hear what our investor relations team has to say about it:
We’ve worked with a lot of passionate founders across many fields but when we break it down, we’ve recognized one similar phase in all attempts, and that’s where we felt the need to enlighten our audience about the essence of investment – Communication.
The leading phase of every investment is the argument you bring to the table, but how you do that is essential to clients. They ‘re going to catch you through that and decide if they want to invest in your startup or business.
There are several things that investors want the entrepreneur to talk about, and that’s when the entrepreneur can flip the switches. So dig a little deeper with Vitality to learn how to connect and speak the language of investors to maintain the long-term stability and profitability of your company.
REVEAL THE MARKET AND ITS NEEDS
The first thing you need to introduce to your investor is the market you’re negotiating with, how you’re filling the place, and who your competition is. It’s not only that you need to explain to them about the scale of the market but consider more how you’re building up as a brand and how your products or services are providing value to the targeted audience.
Talk about your USP and draw the connectors linking you and your market so that investor knows that how you’re strengthening your market.
GET EQUIPPED WITH AN INVESTMENT PLAN
Let the investor know how you’re planning to use the funds to make a difference and how it will provide the value to the customer.
No investor would ever invest in a business that has no concrete understanding of how they will benefit the company and also the investor. Therefore, it’s necessary to get handy with an Investment plan.
DITTO PRODUCTS
Investors don’t invest in Ditto products, but Innovation. Talk about Innovation and how your product can innovatively replace a product that already exists in a market.
Give the Investors an innovative sight to your product. Let them appreciate why it is vital and how the devoted product or service can give a boost to your revenue while nudging the whole industry in a positive direction
TALK IN NUMBERS
Most entrepreneurs never get the concept of numbers. They don’t realize how crucial it is to bring the correct figures to the table.
Win the opportunity with numbers, sharpen the rims, and speak about the accurate values.
Present the investor with last year’s sales report. Provide them an exact evaluation of how much revenue you’re generating from a sole commodity or how much you’re able to generate after the investment.
RETURN ON INVESTMENT (ROI)
Everybody in this world wants to know if their money is worth spending or not, and Investors are all about ROI (Return on Investment). Therefore, ROI should be the focal point of every investment contract.
Return on investment is the single most influential attribute that can dramatically change all the decisions. Investors always want to discover how your idea would favor them, why you choose them, and how their finances would help them grow.
It’s up to you to show them the right opportunities to invest their capital by anticipating the ROI, and always apprehend it to them so there will be no better factors left to don’t consider your venture.
LET THEM INVEST IN YOU
Investors don’t invest in the product but the person connecting with them.
The aim is to build confidence–both in your organization, your team, and in yourself as an individual, leader, and business founder.
Give importance to listening to your investors instead of glossing up things because each investor will probably not invest in your business, but all of them will always tell you something about your weakness or strength.