Initial Impressions Matter

Consider the perspective of an investor meeting someone they know nothing about. While the originator may soon dive into their idea, initial impressions are formed almost instantaneously. The investor's mind begins to develop an image of the individual, which can significantly influence the conversation's direction.

Thus, it's vital to establish yourself as a credible person to discuss the project right from the start. Offer a concise introduction about who you are and your relevant professional experiences. Avoid overstating your expertise; let the conversation naturally lead the investor to recognize your qualifications.

Presenting the Problem

Now, shift focus to presenting the problem rather than your solution. Clearly articulating the issue is often more straightforward than explaining how to resolve it. A compelling presentation of the problem can pique the investor's interest.

Make sure to describe the problem in an easily digestible manner, ideally supported by data. If the issue resonates with the investor's business or personal interests, it will be more impactful. Quantifying the problem can enhance its significance. For instance, stating that kitchen faucet valves waste 10% of water annually provides a compelling figure that illustrates the issue's relevance.

Vision of the Future

What if your idea doesn't directly address a problem but instead introduces a novel concept? In this case, pivot the narrative towards a vision of a world enhanced by your innovation. Share how your idea transforms everyday life, emphasizing the benefits rather than the solution itself.

For example, if your concept is a teleporter, describe a future where transportation costs plummet. If you propose an innovative hair-styling device, illustrate a scenario where professional styling becomes accessible at home. Relating your vision to the investor's context increases the likelihood of their appreciation for your proposal.

Presenting the Solution

Only after establishing the problem and your vision should you introduce your solution. Start with a clear, succinct description of your proposal, followed by an explanation of how it addresses the problem or aligns with your vision.

Crafting a concise message is key, ideally one that elicits an "aha" moment for the investor. Be prepared with a more detailed explanation if necessary, but aim to keep your description straightforward. Avoid falling into common traps, such as providing excessive detail or diluting your idea with too many variations.

Demonstrating Your Commitment

If you have a prototype, showcase it. If you only have a mock-up or concept, present it confidently. Investors are looking for commitment and seriousness about the project. If you lack physical evidence, be ready to discuss critical data.

Presenting the Numbers

Key figures that will capture an investor's attention include:

• Estimated costs for prototype or MVP development, production, and marketing.
• The expected investment required from the investor and any additional support needed.
• The potential target market size and demographic characteristics.
• Anticipated revenue per customer and your monetization strategy.
• Timeline for achieving profitability and return on investment.

While these figures will often be estimates, ensure they are realistic and supported by credible data. Presenting grounded projections enhances your credibility and can significantly influence the investor's perception.

More insights available at PlainEnglish.io. Subscribe to our weekly newsletter and connect with us on Twitter, LinkedIn, or Discord.