PR TIMES AFRICA PR TIMES AFRICA Magazine june 2015 | Page 21

How to win over skeptic Investors
BY DAVE LAVINSKY
W
hen you're selling
something to anyone, be
it a prospective investor
or prospective customer, there are
two main types of selling
techniques to employ: emotional
selling and logical selling.
In emotional selling, you appeal to
the buyer's emotions. For example,
if selling a sports car, emotional
selling would have the prospective
buyer visualize how they will feel
when they press down on the
accelerator and surge forward, and
how the wind will feel in their hair
when they put the sun roof down,
etc.
Logical selling would appeal to the
buyer's logic. A more logical sales
pitch, for example, would include
factors such as why this sports car
is better than others (perhaps better
gas mileage, better warrantee, etc.)
and why the prospect should buy
from this dealer (perhaps better
pricing, better service, etc.).
The most effective form of selling
is generally to use both emotional
selling and logical selling. This
holds true for "selling" to investors,
even very sophisticated ones.
For example, even the seasoned
venture capitalist has emotions.
Painting the picture that your
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company will be the next Facebook
or Google will excite them. Getting
them to think about how they will
feel (the prestige among friends,
colleagues, etc.) from being an
early investor in such a huge
success can prompt action.
However, while emotional selling
is helpful, the primary selling
technique to motivate most
investors is logical selling.
Specifically, you need to prove to
them why your venture will
succeed and how they will get a
solid return on their investment.
To win over such investors, your
logical selling argument should be
packed with irrefutable market
research. When you present
investors with third party research
(i.e., research published by sources
other than yourself), they gain the
confidence that your venture is in
fact worthy.
So, what market research should
you conduct to logically prove your
case to investors? Here are the
eleven core areas to answer:
1. Industry Sizing
Investors need to understand
precisely how big your market is.
Because if your market is too
small, their opportunity for returns
might also be small. So, start by
determining your market size.
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1ST EDITION
2. Key Market and Industry
Trends
Investors also need to know the key
trends in your market. For example,
if the market is currently small, but
it's growing rapidly, this might
excite investors. Or if new
government regulations have
prompted industry changes that
support your success, they need to
know.
3. Details on Your Top
Competitors
Having competition is generally a
good thing; it proves that customers
are buying sol utions like the ones
you offer. Importantly detail the
strengths and weaknesses of your
competitors so you and your
investors know what you're up
against.
Importantly, you don't have to be
better than your competition in
every single area; ideally you're
better in the areas customers care
about most.
4. Website Performance of Top
Competitors
In nearly all industries, the web is a
great source of leads.
Understanding and detailing your
competitors' performance on the
web gives great insight into them
and online opportunities that exist
for you.
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