Investors do not have to be domain experts in the companies they invest in.
Investors are keen to understand the business case for the concept/product/service that you want to introduce. Hence, the following steps help in setting the stage for your presentation of your business case:
- Clearly articulating what problem your are solving or what opportunity you are addressing is important. This helps those who are not familiar with your domain get a sense of the opportunity.
- Establishing ‘what’ it is specifically that you propose to do is critical. Often, this is the part where entrepreneurs ramble and have long winding speeches for. Instead, it is good to have a sharp, short one/two line pitch about what you intend to do. E.g. We plan to make the vaccination process convenient by creating a ‘vaccines-at-home’ service. Vaccines have a 40-50% gross margin and additionally we plan to charge a premium for home visit and the assured quality of experience.”
- The next part is explaining ‘how’ you intend to do it. I.e. The implementation plan and what it would take to make this concept work.
- The potential and the scale of your aspiration: Especially for investors who are not familiar with your domain, it is important for you to explain the size of the opportunity and how large you want your company to be.