Great questions. I can't wait to see how our community responds.
I personally think it would be a combination of all three. You want your potential investors to know you've done your research & thoroughly understand what your are proposing. You also want to assure them that you are not asking them to finance your dreams alone. At the same time, you want to lure them in with the potential profits that the business will have.
I think you are right, but sometimes they only give you so much time. So you need to focus on one area the most and what area would that be?
It comes down to the bottom line. What's the value of your business or potential? I think that people now days are more focused on the money so with that train of thought I would have to say that you would want to have more focus on the ROI as well as the investment funding you are asking them for
It’s about getting them to believe in you.
The best way to do this? It may be a bit “20th Century”, a bit “old-hat” and it’s not short enough to fit into a Facebook status, but given current trading conditions I’d recommend a well thought out business plan.
Now more than ever, small businesses need to inspire confidence to get off the ground, and well-written, diligently researched business plans are still the best tool for the job.
The bottom line is that if you want to go into business for yourself and want someone to invest, you have to at least prove you've done your homework on cash flow. Something like up to 80% of once-profitable businesses go under because of insufficient cash flow – and lenders and seasoned investors know this.
Do you have an idea as to who you wanted to present the idea to? Are you aiming at maybe some acquaintances or family or are you looking for some outside sources? I think whipping up a relatively short powerpoint that you can email is a good way. Maybe ask some of your friends and family if they know somebody who would be interested. I'm not sure on the responses you get but I have seen people looking for investors on craigslist as well.
What's interesting to find out is what is the best way to present a money making venture to potential investors?
-Focus on the details? So they understand you have done all the homework that had to be done...
-Focus on your input? So they see you are not asking to pay for your dreams...
-Focus on the potential ROI? So they get enticed by appealing to their thirst for more money and greater returns...
What do you suggest?
Bear in mind, investors here means anyone person or organization with enough money to fund a venture of $1000 or more up to $10.000.000.00