How to get investors to sit-up and listen.
Entrepreneurialism is thriving in Australia and according to Forbes.com 35 per cent of Australian startups are based in Sydney followed by 14 per cent in Melbourne and 9 per cent in Brisbane. So, when it comes to seeking investors, competition is fierce.
According to co-founder of BenchOn, Tim Walmsley, “Investors are searching for a team that has the commitment, resilience, and ability to execute a business model.”
The skill to concisely convey your message, understand industry key drivers, and the ability to pitch market knowledge and passion are essential to getting investors to sit-up and listen.
It is also “best if you have a history of entrepreneurial ventures that prove you have the grit to plough through challenging times,” adds Founder and CEO of Employment Hero, Ben Thompson.
In the highly competitive startup industry, it is now more important than ever to make your business stand out and in this week’s Let’s Talk we asked several business leaders for their tips on ‘how to get investors to sit-up and listen’.
Tim Bos, co-founder and CEO, ShareRing
To get investors to sit up and listen, you need:
- An experienced founding team that has a track record of successfully building businesses and knowing what it really takes to get a business up and running. A combination of complementary skill sets, and qualifications is a must.
- A genuine ‘market need’ for your product/service: what problem is your business solving, how big is the target market (potential prize), what’s different about your businesses vs those already operating in the space? I’ve heard a number of investors say, ‘could I see myself using this product’ as a test for market need. It’s an easier sell if investors can see themselves using the product.
- Credible cornerstone investors: investors will follow other credible investors. The first dollar you raise is the hardest. If you have backing from credible investors, it’s an easier sell to others.
- Foundation partners/clients: early stage partnerships with ‘best in class’ businesses turn investor heads. Investors cannot be experts in every market. Having credible brand names associated with your business means you have gone through a level of due diligence with an organisation that could well be an expert in the market segment you are operating in. This helps demonstrate to investors a credible business model.
– Rebecca Thacker on February 19 2019