Revealing investor's primary reason for being entertained by startups.

Investors are ultimately interested in one thing; returns. Startup investors entertaining the ideas of a startup are asking the questions they ask and anticipating being “wowed” because the folks that have been able to be successful as investors have had an unparalleled ability to be able to put themselves into the mindset of the consumer. These successful investors have been able to anticipate what it would be like when they’re presented with an idea. How does your startup standout? And this is as well a Good Questions with steemit - How does steemit stand out among all the other cryptocurrencies .

When Jorden Belfort wrote in his book about the ability to sell a pen to an individual, his intention was for the “seller” to inquire about the needs of the person being sold to. The perfect thing the seller could have done in that situation was to inquire into the buyers’ needs. What are the investors’ needs? Their primary reason for being entertained by startups is to gain returns. What will the returns be and when can I get them?

Prior to any startup meeting investors, it is understood they have a business plan that includes a statement of future cash flows and a marketing plan as well as the capital required to invest and operate.

**How can the startup excite the investor? **

Introduce a market differentiator that will provide a bona fide desire within the consumer to buy that product or service. Understanding the desire of the consumer as well as identifying a need are the key aspects of what an investor is looking for.

Getting an investor excited about the problem you may solve for the consumer is the biggest part. Should you be able to get past that really big hump that alone may back up the numbers in the cash flow as well as capital options in which they may invest. Some ways I’ve seen people create the desire for investment from investors are problems being solved. Problems the investors didn’t even know about. People too often take for granted that an idea will stand on how it impresses the layman alone.

Successful investors have all too often seen ideas time and time again that could not explain the problem it solves, or how it may differentiate itself in the market. What problem did Tinder solve? At first glance, you’d think it solved the problem that introverted people needed to be able to date. Actually, the problem Tinder solved was that there was no straight version of Grindr.

Conclusion

In Jordan Belfort’s instance of when he wanted people to sell him the pen, he wanted you to solve a problem the consumer had. The consumer was in the market for a pen. They may have not even known it. Creating the desire for the pen by proving it solves a problem for the consumer is much like creating the desire for your startup in an investor by showing them it solves a problem. Once you show the investor you solve a problem for a wide audience, show them the revenues you’ll create for them and most likely they will jump on board.

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renuccio (49) 8 years ago

Create them a synthetic problem, then sell them the solution. That's the base of all infomercials. :D Nice read!

$0.05

1 vote

belkins (54) 8 years ago

Thank you for information @dragonho :)
Keep do posts like this :)

warrensteem (65) 8 years ago

Great read man! Thanks for this. Love the pen example.

prufarchy (68) 8 years ago

This shouldn't be difficult with Steemit, it's like water in a desert and it sells itself to users

very-you (25) 8 years ago

I agree, but from the right investor a much more important question will follow after - I already have a pen, and now, how you gonna sell me yourself and your team?