By Melanie Sovann
Starting your new ecommerce business depends not only on the great ideas you might have, but also on the funds you have available. Investors can be a great way for you to start your business without having to worry about the financial aspect of it all. But in order to achieve that, you will need to know how to attract the right investors.
The best thing you can do in order to interest your potential investors in your new business idea is to write the right pitch. Writing it correctly could help you get the right people to help you get started. Here are some great tips to help you create a pitch which will attract investors for your new ecommerce business.
1. Talk about your story
Something that always helps people relate to what you are sharing with them is making it personal. In this case, this means adding a personal story to your pitch. This can be the beginning of your pitch, which can include the reasons why you decided to start this type of business, your motivations and your dreams in regards to your goals.,
Instead of focusing on numbers and statistics early on, telling your potential investors a story about the beginning of your business ideas will help hold their attention and listen to what you have to say a lot more carefully.
The more your investors connect with your story and feel your passion for starting your business, the more likely you are to not only gain an investor but also someone who will help you succeed by offering you advice and coaching you to success, as they might have been at your spot at one point in their lives.
2. Be specific about the products you wish to offer
Saying you wish to run an e-commerce store is only one part of the reason why you need funding from someone. The other part has to do with the products you wish to create and promote and the costs of their manufacturing.
For example, if you wish to sell clothing items on your e-commerce store, you will need to be specific about your target audience, the cost of the fabric and other materials you will need, the place where they will be produced, etc.
All of this information will allow the investors to know exactly how much you are planning to invest into creating good quality products and also whether your products will be successful or not. The more specific you are about your products, the more likely your investors are to invest in your idea as they won't feel like you are not fully certain about what you wish to create.
3. Make your products stand out
Something that always interests investors is the advantages of your products in comparison to the ones of your competitors. No matter which field you will be working in, there will be other companies which will try to follow the trends and create products which will be enjoyable by their target audience.
Inevitably, you will have to follow the same practice but it is up to you to create products which will stand out from the crowd. When it comes to your pitch, you will have to be prepared in advance and explain exactly why your products will be better than anything else in your field.
Whether you use a certain type of materials or new ingredients in your products, you will need to mention them and put emphasis on exactly how they will benefit your customers. Even if something is small, you should try and make it look important and necessary in your consumers' lives. The more interesting and unique your products sound, the more likely you are to get an investment.
4. Include details about the employees you wish to hire
The employees are a very important part of any business, and having prepared a plan of exactly which people you are going to need will help you gain some points in the eyes of your investors. For a business that is just starting out, especially one that is based online, it is very easy to start off with just a handful of people who will keep the business going.
The good thing about not having an office, in case that's what you wish to do in the beginning, is that you can easily work with freelance professionals who will be able to get your tasks done without you having to commit to employing someone permanently.
This idea is helpful as you will be able to show your investors that you will need fewer funds in order to get your business started. As your business will continue to grow, you will be able to start adding more people to your team permanently and you will be able to even build an office space in case you wish to expand your reach.
5. Explain how you wish to reach your target audience
Finding out which your target audience will be is just one thing that will catch the interest of your investors. The other thing you need to be worried about is actually attracting this target audience and this is something you should share with your potential investors.
One of the best ways for you to achieve that is through social media platforms. In case you haven't already, it might be a good idea for you to create some social media accounts and start gathering followers and creating hype about your upcoming business.
Seeing you being active early on and having certain plans in regards to your online advertisement campaigns and marketing strategies will help show your potential investors that you have put enough thought into this idea.
6. Prepare your pitch in advance
A pitch is the number one thing that will help you get your investors interested and allow you to share your ideas and dreams about your new business easily. While you will definitely have to send out your pitch in written form to your potential investors, you might also have to present it to them face-to-face and answer any questions they might have in regards to your plans.
One of the things that will help you achieve that is to prepare your speech and presentation of the pitch in advance. By saying it out loud, you will be able to correct mistakes and rephrase your sentences so that you are able to present everything in the best way possible.
As a result, your speech won't seem forced or unprepared and you will feel a lot more confident while presenting your ideas to them. You can always ask a friend, a family member or a business partner to listen to your pitch and help you correct any mistakes or anything else that might need some more work and preparation.
Starting your new business successfully
It is only normal for you to be excited about starting your new business and this excitement should definitely take part into your pitch. You need to show your investors that you believe in your idea and have prepared it well enough for it to be a success.
Whether you have past experience in the field or not, being well-prepared and organized is what will help you gain the trust of an investor. The way you present your pitch will also play a very important role, so you need to be prepared in advance and make sure that you are able to support your vision and help it come to life.
Melanie Sovann is a Senior Writer and Content Editor for pickthewriter.com. She enjoys writing about various topics and loves to educate her audience every chance she has. In her everyday life, you will find her reading and enjoying a cup of tea.
Are you interested in boosting your career, personal development, networking, and giving back? If so, WITI is the place for you! Become a WITI Member and receive exclusive access to attend our WITI members-only events, webinars, online coaching circles, find mentorship opportunities (become a mentor; find a mentor), and more!
Founded in 1989, WITI (Women in Technology International) is committed to empowering innovators, inspiring future generations and building inclusive cultures, worldwide. WITI is redefining the way women and men collaborate to drive innovation and business growth and is helping corporate partners create and foster gender inclusive cultures. A leading authority of women in technology and business, WITI has been advocating and recognizing women's contributions in the industry for more than 30 years.
The organization delivers leading edge programs and platforms for individuals and companies -- designed to empower professionals, boost competitiveness and cultivate partnerships, globally. WITI’s ecosystem includes more than a million professionals, 60 networks and 300 partners, worldwide.
Inspire Future Generations.
Build Inclusive Cultures.
As Part of That Mission WITI Is Committed to
Building Your Network.
Building Your Brand.
Advancing Your Career.