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Idea 049: 5 Keys In Our Presentation To Attract Investments

Imagine if we were attending the final stage of a job interview, we needed to persuade the interviewer, who was the CEO of the company, that we were the right candidate of that position. What should we say about ourselves? How to make them choose us?

Good Presentation is Important

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The key to win an offer in a job interview is to make a good presentation.

It is hard to show to the interviewer that we are capable of doing something. People always say that they are detail-minded, proactive, energetic, good interpersonal skill, good communication skill, able to work under high pressure, etc. However, the interviewer would not know until they actually hire the candidate. Therefore, the key here is not to prove to the interviewer that we are capable of doing something, but to persuade them to trust we are capable of doing something.

Same as looking for investment. If we are running businesses and looking for investors to invest into our businesses, we need to persuade them that it will be one of the best investment decisions if they decide to invest into our companies.

We might think that this can only be done by top sales, but we are no top sales and destined to fail. This is Not correct. Nowadays most of the people are used to do online shopping. Guess who persuade them to make the purchase? any top sales? No, they decide to make the purchase based on what they see from the online shop.

As long as the online shops present the products in an attractive way, people will be attracted by those presentation and pay for the products.

Similarly, if we want to win a job offer, we should give a good presentation to the interviewer. If we want to win an investment, we should give a good presentation to the investors too!

Here I am going to show you 5 Keys in the presentations that will attract investments to our businesses.

1st Key: What Are Our Businesses?

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As Warren Buffet once said, “Never invest in a business you cannot understand.” Although he missed a lot of opportunities of investing in high-tech company like Google and Amazon, he is still one of the greatest investors in the history and we should always learn from him.

To most of the investors, money is their whole lives, representing their values and belief. Therefore, it is challenging to persuade them to invest in a business unless they understand the business and see the value in it.

That is why it is important to let our potential investors to understand our businesses.

Example:
If we are one of the startup e-commerce selling crystals, we should tell the investors about the type of crystals we are offering, the meaning of different types of crystals and their selling points in general, source of those crystals, the fee structure, the online platform features, etc.

It is also important to tell the investors if we have achieved some milestones in the previous years, eg, achieved to first $1m Revenue, received the 1st 100k orders, got the first 100k customers, etc. This will let the investors know that we are committed to our businesses.

It is better to use different flow charts, icons and point form to illustrate the selling processes, any possible synergies and economies of scale, etc.

The key here is to let the investors understand the businesses in the minimum amount of time.

2nd Key: Are There Any Opportunities?

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Next time when you want to buy something, ask yourself one question, “Why do you want to buy something?” It might be because you need that thing? or it can help you in your daily life? or it will bring you some value?

People spend money because they can exchange something good with their money. Investors have the same mindset as well. Investors always look for opportunities to invest, so that they can make more money from the investment. Therefore, if we want to get the money from the investors, we need to show them the opportunities in our busineses.

Example:
If we are running a space sharing businesses, we might need to know if the countries or cities we locate in is really in need of space. Say an international city like Hong Kong is very small and has limited space. People there need to pay high rental for relatively small offices. Therefore, there is potential space sharing market in Hong Kong.

Same problems occurs in Singapore where the land is even less than Hong Kong. It is especially hard for entrepreneurs or new businesses to find suitable offices in these places. Hence, it is expected that space sharing businesses will bring a lot of opportunities to the investors.

However, it might not have such opportunities if the space sharing businesses are in large countries like USA or China, where people there have a lot of space and the office rental is affordable.

Opportunities always link with the problems. When we find the problems of the market and keep drilling down, we will always see the opportunities beneath.

3rd Key: What Solution Can We Offer?

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Finding problems is hard, but it is not impossible. However, sometimes it is even harder to find the solution to resolve the problems. Without the proper solution, the opportunities in the problems will not be monetized.

Example:
Imagine if we knew that there were a lot of rich people living in a village located in a rural area full of large mountains, they were living so packed as there were too few houses available, forcing people to leave the village. If we were the real estate developers, could we see the opportunities?

Yes and No. I say Yes because there are high demand of housing from a lot of rich people. However, I also say No because the village is located in a rural area full of large mountains, meaning unless we level the land, there is no way we can build more houses for those rich people.

In order words, unless there is solution for the problems, we cannot monetize the opportunities beneath the problems.

It will be great if we are the only solution providers, but if we are not, we can still earn money from the market. Therefore, it is important to tell the investors about the solutions we are offering against the existing problems.

4th Key: Do the Financials Look Good?

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Tops sales always have good presentation skill, but having good presentation skill might not become top sales. Good presentation skills somehow mean good story telling skill. If there is no content in the presentation, people will not buy it.

The financials behind the businesses are the key content of the presentation.

Most of the investors might not be the professional accountants or financial analysts, but they are sensitive to the numbers. They might be persuaded by wonderful stories, but they will only make decision based on good financials. If the financials do not match with the stories, they will withdraw their interest to avoid any unnecessary risks.

Speaking of financials, there are a lot of different kind of financials for different kind of business, but basically they are interested in Revenue, Gross Margin, Contribution Margin, EBITDA Margin, Churn Rate, COGS, etc. I have talked about this in my another articles: Idea 044: 5 Key Figures in Running Businesses.

We should also be prepared for detailed explanation for all the fluctuations in the historical financials if available for the upcoming due diligent on the financials if they are interested in our businesses. The financials I mentioned above are only for the investor’s first glance.

5th Key: Give Me Some Brands!

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Imagine if big companies like Google, Amazon, Apple, Tesla, Microsoft, etc were our main customers, how would the investors see our businesses? they would definitely see us as the goose that lays the golden eggs.

Big customers create good reputation of the businesses, and the good and long relationship with big customers guarantees some fruitful return in the coming years. The higher the expected return on investment, the more money the investors are willing to invest in the businesses.

Big Customers also mean reduction of keen competition. It is reasonable to believe that one business having big customers tend to be dominating the market. Investors always look for those high return businesses.

Of course this is considered as bonus. Even if our businesses don’t have big customers, if we can offer solution to a big problems in the market and result in large demand, investors will still be interested in our businesses.

Conclusion

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There are different factors affecting the investors’ decision. I heard that one investors are interested in one business solely because there are another highly reputed investor interested in that business. However, in any scenario, we should try our best to attract the investors with our presentation, at least making them to believe that we are one of the ways out of their money.

To conclude, we should pay attention to these 5 keys:

  1. What Are Our Businesses?
  2. Are There Any Opportunities?
  3. What Solution Can We Offer?
  4. Do the Financials Look Good?
  5. Give Me Some Brands!

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If you have any questions or have anything things to share, or you would like to be a partner authors with me, you can reach out to me via email learning@iamdelusionman.com.

Besides, if you want to know more about what I have learnt from other successful people, you can click the below link. This could the one of the life-changing articles for you:

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