Categories: Blogs

Unveiling Investor’s Mind On Investment Decision Making

Getting into your investor’s mind is one of the first things in the mind of people who are planning to gain an investment. So there are a few things you have to keep in mind which would help you to master this skill like a pro. For understanding what makes your proposal for investment strong, you need to highlight key points which would trigger the investor’s attention to the proposal.

Return On Investment (ROI)

The majority of things are a numbers game when it comes to business. So, you must keep in mind the skill to portray your business in quantitative terms when you talk of business; and when you are talking, make sure you talk in the language of returns. It could be illustrated with the simple example that a particular business model would bring in a certain level of return on the investment made (for example 2x or 3x ROI). Including such statistics would give a real-time picture to the investors, which would help in engaging them more in the conversation.

Hurdles / Challenges

The first thought that an investor encounters while listening to a business model is the hurdles/ challenges that would come while execution. These hurdles can differ widely in any department ranging from operations, sales, logistics, and others. So, adding a slide in your pitch presentation about the hurdles or business challenges can be a bonus; as it would make it clear that you understand the business model in and out, and that you are prepared to resolve all the issues faced in the same.

Future Scope of Business

Forecasting with the numbers is the most comparative way of understanding things and furthermore analyse the business potential. Providing a business forecast makes it easier for the investor to make an understanding of the business in the coming years or the decade.

Vision and Value Addition

When you are working in a particular domain, you have a clear understanding of the domain and vision for the business. So, you need to make sure that you are able to align your perspective with your investors’ vision, and thus nourish it with hardwork and an innovative approach. Your business idea must solve a problem and add value to the market, which enhances its probability exponentially, of making an impact on the investor.

Loss Aversion

Loss aversion is a cognitive bias that explains the fact that losses have a greater impact on our minds than gains do. In simple words, a person would prefer not to lose $10, than to gain $10. On the similar lines, investors can avoid investing at all or make decisions that minimize risk, which can result in foregoing financial gains. However, if you are able to align the market forecasts and business vision in the right direction, it can lead to a win-win situation for both parties. 

Keep these things in mind when you are planning to attend the investor meeting as it would make your meeting impactful with better chances at results

Akshat Verma

Recent Posts

African market’s emerging trends

If one were to take a holistic global view, Africa is currently seen as one…

1 week ago

7 Things To Be Kept In Mind While Navigating Through Automotive Partnerships

Business expansion is the second phase of enhancing business, once you are done with the…

4 months ago

India stands on the verge of Immense evolution in the healthcare domain with high potential in the vaccine market

India holds an impeccable position in the global healthcare sector and it continues to thrive…

9 months ago

How Verkko Group has made a Significant Contribution to Overseas Business with their Top-notch Consulting Services?

Verkko Group is a consulting firm that allows clients to expand their overseas business with…

9 months ago

How FDI Facilitates An Exponential Boost In Business Expansion?

FDI is one of the strongholds of Verkko Group and with a team of experienced…

9 months ago

How do Italian car manufacturers contribute to the EU’s automobile market?

The Automobile industry plays a significant role in enhancing a country's economy as it is…

9 months ago

This website uses cookies.