At Company Partners we often get asked if an invention or a service will be attractive to an Investor. While there are of course many factors to the answer, you can easily put yourself into the mind of a potential Investor by looking at your offering objectively and going through the same thought process that they will be going through.
- Will it actually work?
- If it will work, will it sell?
- If it will sell, will it make a profit?
- If it will make money, how much money would it make?
- Do I like him?
- Can I work with him?
- Is he able to run the business?
- How much work would I need to do to make up for any lack of skills / resources he may have?
- Is he realistic about what he wants for the equity?
- Is his business plan sound?
- Are the sales and marketing thought through?
- Are the funds being raised going to be used to grow the company – not to just pay him a salary?
When you look at the above, be aware that the investor will also want some proof, or evidence of what you are claiming. Spreadsheets, a business plan and market research that you may have carried out (asking your friends & family doesn't count).
If you believe in your product or service, persistence will pay, but you need to balance enthusiasm with ensuring that you have something that Investors will want to invest in and then present it in the right way. Have a look also at Writing business plans for business angels and Presenting to Investors.