Investors hear ideas on a daily basis. While many sound great, they may not be viable. You must be a business with a model that scales, a product or service that has “legs,” and even people in place to make it happen, including the talent infrastructure.

Imagine you’re trying to convince your friend to invest in a new restaurant you want to open. You tell your friend all about your amazing idea for the restaurant, the mouth-watering menu items you plan to serve, and the unique ambience you want to create. Your friend is impressed by your enthusiasm and creativity, but then they ask you a very important question: “How do you know people will actually come and eat at your restaurant?

You realize that you haven’t really thought about that part yet. You’ve been so focused on your vision for the restaurant that you haven’t considered whether there’s actually a demand for it. You can’t just rely on the idea to sell itself – you need to have a concrete plan in place for how you’re going to attract customers and make sales.

This is similar to the situation when you’re trying to attract an investor for your business. Investors are looking for a return on their investment – they want to see a concrete plan for how your business is going to make money. Simply having a great idea for a business isn’t enough – you need to be able to demonstrate that there’s a market for your product or service and that you have a solid strategy for attracting and retaining customers.

Think of it like building a house. Your idea for a business is like a blueprint for the house – it’s important to have a good plan in place before you start building. But the blueprint alone isn’t enough to make a livable house – you also need to have the materials, the tools, and the know-how to actually construct the building. Similarly, having a great idea for a business is important, but you also need the resources and expertise to turn that idea into a successful venture.

Ultimately, investors are looking for businesses that have a proven track record of generating revenue and profits. They want to see that you’ve done your homework, that you understand your market, and that you have a solid plan for how you’re going to make sales and grow your business. So when you’re pitching your business to investors, make sure you focus on the concrete details of how your business is going to make money – not just on your exciting idea for the future.

Investors are interested in ideas that can turn into profitable businesses. They’re not just looking for something that sounds cool or innovative – they want to see evidence that the product or service can actually generate revenue.

Again think of it this way: if you were trying to sell a house, you wouldn’t just show potential buyers pictures of an empty lot and say, “imagine a beautiful home here.” You’d want to have a finished product to show them, with all the bells and whistles that would make it appealing. Investors want to see the same thing – a solid, fully formed business plan with evidence that the product or service is in demand and can generate profits.

Even the most innovative idea won’t be enough to attract investors if there’s no clear path to profitability. It’s like trying to sell a car with no engine – it might look nice, but it’s not going to get you very far. Investors want to see that the business has a strong foundation, with a clear target market, a viable business model, and a solid plan for growth.

Ultimately, the goal of any business is to make sales and generate revenue. Without that, it’s just an idea. So when you’re pitching to investors, focus on demonstrating how your idea can turn into a successful, profitable business – not just an interesting concept. By doing so, you’ll be more likely to win over investors who are looking for opportunities to invest in businesses with real potential for success.

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Copyright Nancy Steidl