Welcome, entrepreneurs! If you’re starting a new business, knowing what investors want is crucial. It can make or break your chances of getting funding and turning your idea into reality. But what do investors look for in a new business idea? Here are some key factors:

A Strong Value Proposition 💪🏽

Investors want to know what makes your product or service unique and how it solves a problem. Your value proposition should explain this in a clear and concise way. Make sure you can articulate your differentiator and demonstrate how it meets a customer need. This can be the most important factor in determining whether or not an investor is interested.

A person holding up a sign that says "unique value proposition."

A Well-Defined Target Market 🎯

In order to succeed, you need to know who your target customer is. Investors want to see that you have a clear understanding of your demographic and how your product or service fits into their lives. Be sure to conduct thorough market research and provide data to support your claims. Identifying a need for a specific target customer will help validate your idea.

A group of people in a market with a target sign in the background.

A Scalable Business Model 📈

Investors want to know that there is potential for growth and that your business model is scalable. If you can show that the infrastructure is in place, and that high growth is achievable, that can be enough to pique their interest. Additionally, be sure that your business can sustainably grow without running out of capital.

A graphic of a bar chart showing a business growth over time.

A Qualified and Experienced Team 🤝

Having a strong team with the right skill sets is a critical factor when looking for investment. Investors don’t just invest in an idea but in the team behind it. Because of this, having the right talent is essential. That includes a team with essential experience and skills in areas relevant to the business. Make sure that you have a plan for how each team member will contribute to the company’s success.

A team of businesspeople looking at a chart on a screen.

A Solid Financial Plan 💰

Investors want to put their money into an idea that will generate returns. That’s why a well laid out financial plan is crucial. It’s important to have financial models for the short and long term and to be clear about how you plan to allocate funds towards each aspect of the business. Be transparent about your cash flow projections and future financial goals.

A person holding up a chart with financial data projections.

Conclusion 📝

In summary, when presenting a new business idea to investors, it’s important to demonstrate that you have a unique value proposition that solves a specific problem. Make sure your target market is well defined, and that the business model is scalable. Additionally, have a strong team with the right skill sets and a solid financial plan. By showing you have all these factors in place, you’ll be one step closer to getting the investment you need to turn your idea into a real business.

Businesspeople shaking hands in an office.