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They're not necessarily trying to mislead you. Most investors are genuinely unclear in their own minds why they like or dislike startups. If you seem like a winner, they'll like your idea more. But don't be too smug about this weakness of theirs, because you have it too; almost everyone does.
To convince a potential investor into putting money down for that business, firstly you need to convince them you are up to the task of delivering values, good business strategy that can gurantee steady growth, strong financials to see how much they can get for whatever amount that is invested and lastly good work management.
Currently I am employed in Cinnamon Hotel Management Ltd, which manage 03 City Hotels in Colombo, 08 Resorts and 03 resorts in Maldives.
In order to attract invstors to invest in my Group, I will educate the investor on the current Profit earning potential of the Sectors, and convince them in the substantial – and growing – demand of the Cinnamon Hotels Brand.
Will inform the investor on the current Financial and the Marketing strength and how the Cinnamon Brand is position in the Market.
In conclusion will inform the investor the estimated retuns that he could expect by investing in the Company.
You do not convince someone to invest. You show how being involved in your business fulfills their needs. Develop Trust. Listen to their needs. Show how your business fills a business need. Has a competitive advantage. Has a strongYOu and growing profit margin. Has a strong management team that has experience, expertise and can be trusted.
The pitch must be customized to the investor, whether it is VC, PE, Institutional, retail, HNW, Family Office.
Here are some basic method to that I can convince investors to invest money into my business
(1)Demostrate profit potential of the business
(2) Show the substantial and growing demand of my product and services, by using statistics.
(3) Layout my businessplan.
(4) Specify my strengths. I will write out my actual experiences that qualified me to run that business.
(5) Outline how the business will function.
(6) Whiteout budet; I will come up with monthly budget for the first year in business and annual budget for the next two year.
By providing 1)Detailed business plan
2)Laying out a strategy for growth & profit
3)Evaluation of risk involved & asessment
4)Calculating /Computing net returns on investment
Through business plan that i can do i have the knowledge and i can in past i ill show him my performance plan everything my idea.
First I would like ask him about his interest in ivestment and after that I introduce my own business and the possibility if we can work together or not.
I would design a long range viable business plan with confortable rate of return on investments.
I would take the investor into confidence and listen to what he has to say about the business world and thanaccordingly draw up an investment plan according to his requirements and future committemnts. I would also summerised the risk and profits available to him in the near furture.
