Good startups fund themselves to grow while great startups knock the doors of right Investors to grow. Now the startups going to Investors is an inorganic way of growing i.e. they make use of Investor’s money to scale up. Convincing the Investor on your dream/product/platform is not an easy task as it sounds. To deliver a “Right Pitch” you need to find, understand a lot of things and spin a story around it which sounds realistic. It is always better to show your propositions in near to actual numbers that puts out a sense of confidence in you as well as the Investor because it shows you have done your homework. So to start with,
Problem Statement Validation: Most of the beginner entrepreneurs think that they have identified a unique problem which needs immediate addressing. This may or may not be true. To validate this you need to understand an approximate frequency of people facing the problem, need for solution that you are defining. Maybe frequency of people facing the problem may 10 out of 100 or maybe 1 in million but without studying the market in actuals you can’t validate you problem statement.
Value Proposition and Modus operandi: Every person solving a problem believes that he/she is providing a Million Dollar solution which will change the lives of people across globe. Entities like Google, Facebook and few others already had made big impact, so it definitely shows ray of hope. But it needs to be understood what role you are going to play and your mode of operation. For example the technology you are going to use. Then validate the technology going to be with the current market scenario and aptness of using it.
Market Size and Business Model: There is a common perception of people to calculate the total number of people facing this problem and number of people who are going to face this problem, will define the market size. But actually there are a lot more things involved like TAM (Total Addressable Market), PAM (Potential Addressable Market) and so on. At the end it varies on the expertise to visualize the opportunity in the market. After realizing the scope, it is essential to shape a robust plan which will give you the right edge in the Market.
Go-To-Market Plan: Now comes the question, how do you make an entry into the market? Now there are some people who believe that first impression is the last impression. In this case it is vital to understand how well you can estimate the Market Maturity, Demography, Sales Process and Distribution model. These are all the technical jargons but what truly matters is, how exactly do you want introduce your organization to the market? It may by choosing the right audience or right time gives you the opportunity to showcase your conviction rather than just the product/platform.
Competitive Analysis and Peer Benchmarking: It is always hazardous to enter the pit without knowing your opponents and what they are capable. This rule was true in Colosseum and is equally true in business also. Breaking down the Market to Segments to Parameters and visualize what they are capable of and in which spaces are they better than you. It is often said that the smart benefit from their opponents also in strategic management it is called Peer Benchmarking. Tabulating the best practices and their yields, setting a benchmark for what all to achieve and to what extent. This process not only gives you the right edge but if done correctly will set you in a league of your own.
Overall a right market research solution can be fruitful for the entrepreneur to take it to investors.