Looking for investment in your startup can be a daunting task. To convince potential investors, you need to communicate your business idea clearly and persuasively. Here are some tips and examples for how to ask someone to invest in your company during an interview:
Understand your business thoroughly
You need to know your business plan inside out before pitching to investors. Be able to explain your product or service, target customers, market analysis, competitive advantages, financial projections, etc. Investors will ask tough questions, so make sure you have researched your market extensively. Having clear written business plan will help you answer confidently.
Practice your elevator pitch
Distill your business idea into a 1-2 minute elevator pitch. Cover the core problem you solve, your solution, target customers, business model, and funding needs. Refine and memorize this pitch through practice. When asked ‘What do you do?’, lead with this elevator pitch.
Emphasize your credentials
Highlight your relevant experience, skills and accomplishments that make you qualified to execute your plan. Investors are looking for capable, driven founders. Give examples of past successes and expertise that instill confidence in your abilities.
Focus on customer benefits
Avoid getting too technical when explaining your product. Focus on clearly articulating the customer needs you address and the benefits you provide. Help investors visualize how your solution positively impacts customers’ lives.
Have a specific ask
Know exactly how much capital you need, what you will use it for, and the equity you are willing to give up. Specify the investment you are seeking rather than saying ‘any amount would help’. Show you have thought through funding needs.
Asking investors for money requires being concise, polished, and persuasive about your business idea. Do your homework, practice your pitch, emphasize credentials, focus on customer benefits, and have a specific funding ask. With preparation and confidence, you can convince investors your startup is worth supporting.