Today your chance to successfully launch your business is greatly supported by the fact there’re lots of venture funds or private investors which can give you a starting capital. But to convince them that exactly your idea should be funded a good pitch or a business plan may not be enough - they’ll want to make sure you have the right business mindset by getting the right answers to their questions.
What kind of these questions are? Visiting several pitch competitions, we've noticed some key points that investors would ask after your presentation.
What market challenges do you see?
An important note here is that you should also add how you plan to overcome these challenges.
How do you differentiate yourself from the competition?
Prove you're capable to win customers even if there are similar products/services on the market.
How do you sell?
What are your sales channels? How do you reach out to your target audience?
What is your current valuation?
For every startup the stages when they seek fundraising differ. This question is relevant when there's already an operating business.
What profit do you already make?
Conditions same as above. Investors want to know that you know how to run your business and make it profitable.
What do you need money for?
You should have a plan for how you're going to spend the received funds to boost your company. Do you need funds for marketing/operations/equipment/hew hires?
Why are you fundraising?
If the company is already profitable, why would you need additional funding?
Are your figures ambitious enough?
It should be a lucrative investment. Same time the numbers should be reasonable.
Elaborate on your business model - fees, licenses costs
Know your business, costs, and revenue. Know what is the best way to make money - whether the payments should come from a one-time purchase, subscription, license, etc.
Describe your end customer
Who is your ICP (ideal customer profile)?
How many active customers are there?
If you're pitching for an existing business.
Give your brief personal background
What is your professional background? How did you get the expertise? How did you come up with this business idea?
If you want people to believe in your idea, you should be its most loyal advocate, you should be the first person to believe it will work out. If you started your business or are preparing for pitching, you've already done much more than other people on the path to reaching your goal and dreams, keep doing a great job and believe in yourself.