11 Tips On Persuading Investors For A New Product

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Written By Godfrey

 

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Your corporation may have the greatest product in the world, but if you want to make money with it, you are going to need investors. You will need sales and marketing, engineers to support the product, manufacturers to make it for you, accountants, lawyers – pretty much an entire company devoted to bringing your new idea into reality. And all of those people need to be paid.

This is where convincing investors with a pitch deck to put money into your product comes in. It can be a daunting task, but if you follow these simple tips, you will be on your way to success.

Tips On Persuading Investors For A New Product

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1. Have A Solid Business Plan

This should include everything from your target market to the projected return on investment. Investors want to see that you have a plan and that you understand what it will take to make your product a success. The best way to do this is through good pitch deck examples and a business proposal.

2. Have Proof Of Concept

Investors are more likely to invest in a product that already has at least some market recognition or acceptance. It doesn’t have to be much, perhaps you invented an accessory for another company’s product, but investors want to see that people want your idea – either through pre-orders on your website or response from focus groups.

Your product may be the best thing since sliced bread, but if there is no market for it, you are not going to make any money. That means that in your pitch deck design, you have to show that there is a demand for your product and potential to make a lot of money.

3. Show Them The Money

Investors want to make sure that their investment is going to be worth it. They will want to see data on how much your product costs to produce, how much you plan on selling it for, and what your estimated profit margins are in your pitch deck slides. This information lets them know that you have thought out the entire process and understand what it will take to make your product financially successful.

4. Know Your Numbers

This includes not only how much money you need, but also what the expected return on investment will be. Investors want to see that they are getting a good deal, and that your product is worth their money.

5. Be Realistic About What You Need

It’s important not to ask for too much or too little money. Investors want to see that you have a realistic understanding of what it will take to make your product a success and that you aren’t asking them to assume all of the risks for you.

6. Network, Network, Network!

This is one of the most important things you can do to secure investors. Make sure you are talking to as many people as possible about your idea. You never know who might be willing to give you some advice or help you find someone who will invest.

How to Persuade an Investors For A New Product pitch sample
Source: Venngage

7. Be Passionate About Your Product

Investors want to know that not only is this product something that people are going to want, but it’s something you believe in. If they sense even the slightest bit of hesitation on your part, they may back away from funding your project.

With the right pitch deck template from Venngage, you can show investors your passion and readiness.

8. Be Willing To Open Up About The Product

It’s best not to make investors guess at what your product is or does; they need to know everything if they are going to invest in it, and that means you will have to be transparent with them. If you want money for a new mobile phone app, for example, you will need to show them your prototype in your sample pitch deck and explain how it works.

9. Establish A Track Record

If you have already been successful with other products, this will go a long way in convincing investors that you know what you are doing. They will be more likely to invest in a company that has a proven track record.

10. Have A Credible Team In Place

Investors will want to know that you have the right people in place to make sure your product gets off the ground and runs successfully. They don’t want to invest money in a company only to see it go under due to mismanagement or lack of skills.

11. Show Commitment

Financial records, pre-orders, prototypes – investors want to see that you are serious about your product and that you are doing everything you can to make it a success. They don’t want to put their money into a gamble.

In Conclusion

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If you can show that you have a sound business plan, understand your numbers, and have a product that people want, you are well on your way to convincing investors to put money into your company. Remember, it takes a lot of hard work and dedication to make a new product a success, but with the right tools in place, anything is possible.


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1 thought on “11 Tips On Persuading Investors For A New Product”

  1. Hello. Thanks for sharing this.
    I’d like to ask if you have some other stuff related to the matter of how to do a proof of concept.

    Reply

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