At the end of every episode of “The Bachelor TV Show”, you see how the ladies crave to receive a rose. Well the world of entrepreneurship is pretty much like an entire series of “The Bachelor” show; most especially when trying to win an investor. This article deciphers how millennial entrepreneurs can appeal to investors.
We have devised four questions that you must ask yourself, about your business, in order to appeal to investors. These are;
Is the opportunity big?
Dear Millennial entrepreneur, how big is your opportunity? Investment is a bet, and just like a bet, investors plan to win; and win big. Take WhatsApp for example; at five-years-old in 2014, it was acquired by giant, Facebook at $19 billion. Surely the investors in WhatsApp were singing their way to the bank with praises of such a good deal struck. Such is the mind of an investor; the big win.
Investors gravitate to where the money is; therefore your entrepreneurship venture must clearly define its monetary value and promise a whole lot of money, to attract investors. The first editor in chief of MSNBC, Merrill Brown says, “The most attractive startups have clear commercial missions and specific monetizable categories.”
Who is behind this business idea?
The quality of your team, will determine if or not you get that investment you are vying for. Is it the right team for the right market? For example if you are creating a tech-related product but all your teammates are not knowledgeable about the level of technology you will need for that product. No investor will even think twice about betting on you.
Also, they are likely to invest in entrepreneurs they know, or through referrals by people they know. So who are your connections and networks?
Related: Ways To Build Your Business Network
What and where is this idea geared towards?
Investors are interested in investing in fields that they have previously invested in or know about. Facebook, has invested in communications- and social media-related entities like Instagram and WhatsApp; and not a confectionery somewhere in Ohio. Therefore make sure you are looking at the right investor, for the right business.
Is your business solving any problem?
Entrepreneur and author, Mark Briggs makes an analogy that investors are more willing to funding painkillers than vitamins. Your investor needs to see that your customers do not mind buying your product, since it is a necessity to them or their wellbeing.
Related: Business Ideas and How to Find Them
In his article on Entrepreneur.com, Sujan Patel writes, “If, in your product or service’s earliest stages, you aren’t seeing conclusive proof that people want what you intend to offer, it’s in your best interest to keep iterating before investing in a full launch.”
Millennial Entrepreneurs need to ask these questions and answer them appropriately if they intend on winning the ‘rose’ in form of investment capital.