There are many ways to get an investor’s attention. On Shark Tank, not only did I take notice of the key factors below, but I also notice my fellow Sharks looking out for the same things. This is how to get an investor interested in your entrepreneurial idea.
I hear from entrepreneurs all over the world and ONE question that keeps coming up is…
How do you (Kevin) decide what product idea to invest in?
Watch the video below or keep reading to learn how you can get my attention as well as other investors!
When I’m looking to invest, there are 3 things that I always look for -and these (almost) always gets my attention (compared to other pitches).
The 1st thing is: PROOF OF CONCEPT
I call this the test before I invest approach!
This is my way of mitigating risk and failure early on. Why? Because even though we have more data than ever before, sometimes things just don’t work out, and when that happens, you don’t want to have all of your resources tied up and stuck, or worse- gone or wasted.
Overall, I want to see that there’s been some kind of a market test somewhere, to a flea market, a catalog, or a shopping channel somewhere.
Proof of concept is number one because it shows if people like it and whether they’ll buy it, right?
Read this article to learn how to start a business from scratch!
The 2nd thing is: CUSTOMER ACQUISITION COSTS
Secondly, I want to now take it a little further because I like to see that it’s proven, but then I like to see that the company has also tried to do some kind of analysis of the customer acquisition costs. That’s important.
The reason it’s important is that if you can show me that you know what your defined acquisition cost of a customer is… then I can evaluate my numbers to see how we’re going to grow the business. Right?
I need a lot of money to put into acquiring more customers. That’s what investors do.
We put the money in to help grow the business.
The 3rd thing is: THE DREAM TEAM
I want to see a great dream team. This is so important to investors.
I have a great team of people and it’s why I’ve been successful for over 35 plus years.
There should be a team built of people in finance, operations, digital marketing, gurus, etc. In fact, this is a key factor in how to get an investor interested in your entrepreneurial idea.
You need to have a good lawyer to help keep your business moving forward in the right direction regardless of any roadblocks.
I’ve been building dream teams for many years and I know how to do that or help companies do it too.
If I do invest my money in their company and they don’t have the dream team, I can help support them in the process.
You heard it here —this is how to get an investor interested in your entrepreneurial idea!
Copy these 3 things and get them ready for your investor (and me):
- Proof of concept
- Customer Acquisition Costs
- Have a Dream Team.
That’s what it takes to get Kevin Harrington’s investment!
Want to Make the Perfect Pitch for Your New Product or Idea?
I’ve created a simple cheat sheet to help you craft your best pitch to potential investors. If you follow this proven process, you’ll position yourself to get the money you need for your business. Get the cheat sheet here now!