Nowadays, it isn’t enough to come up with a great business idea, because unless the entrepreneur has properly thought it through, it is likely to fail.
The founder must be able to demonstrate to potential investors how the business is different from others in the market and that the market itself has the potential for future growth.
Investors will want to see that the founder has a clear business plan and that the individual has the relevant skills and qualifications to take the business to the next level.
They will want to feel confident that the entrepreneur has prepared for the pitch, with the answers to any questions they might pose, and that they have reasonable financial projections based on research, not optimism.
The entrepreneur should also research the right investor for them, not just go to one that looks like they might fit the bill. This involves looking at what other ventures they have invested in and how those relationships have progressed.
The average investor will be expecting to exit between two and five years, so the entrepreneur needs to be clear about growth targets and exit plans and should not go with an investor if their ambitions for the future are not aligned.