You have a brilliant idea for an app/product/service and you have done your market research. The feedback is positive and you have done what you have needed to do to get you to the point where you are ready to pitch to an investor.
When an investor is considering an entrepreneur or small business owner as a person they want to know that you have the ability to follow through, to deliver the goods and walk the talk. If they are evaluating a few potential investment opportunities and one of the deciding factors is how you will follow through, then applying project management with getting your app/product/service to market may be just what makes you shine brighter than the others. If you want a heads up on what project management is then click here.
Project management may be just what you need to have a competitive advantage over someone else. A project plan demonstrates how well you have thought out your strategy to get to market. A solid project plan helps investors make smart decisions and analyse any weaknesses. If you are going to a large organisation to get funding it will help show that you are a serious entrepreneur/small business owner that has taken a considered approach before pitching. A project plan also outlines the timelines of when you are getting to market so an investor can have an idea on when to expert the return on investment (ROI) to commence. They will also want to know the quality of the app/product/service and whether its up to their standard.
You are demonstrating to them that you have considered the numbers, your business has the potential to be scalable through project management, displaying your background and experience, that you are credible and results driven. If your app/product/service is a risky investment it will help them identify at which point you should both bail and avoid a smash.
Everybody knows an investor want to know numbers. What’s your business revenue, what flows in and out of your business financially, and how you spend money. Giving an investor a project plan with a cost management plan included on how you plan to spend the money will help them assess whether you are realistic with your estimates and budgets and whether they will ever see their money again. That you aren’t a risk to them. It will help them see how mature and responsible you are with someone else’s money. A cost management plan will also give them something to analyse to see if there are any pitfalls coming up that they can help you mitigate. If an investor is issuing the money in installments it will also give them an idea on when to have funds available.
Showing an investor that you are using project management techniques will help them understand that if you wish to scale up in the future, you have a scalable framework to support this. The wins, failures, problems and headaches in this project can be considered so you can improve the outcomes of your future projects. If you are going to be doing versions on your app/product/service this will certainly help you to continually improve.
An investor will also want to know your background and experience. By putting together a project plan you will be able to demonstrate this and you have a realistic understanding and approach to getting your app/product/service to market. This will give an investor confidence to invest in you or not. If not, you can take their comments and feedback and incorporate it in to your project plan ready for your next investment pitch to someone else.
An investor will also want to know that you are credible, the people working with you are credible and that you have considered the costs of hiring credible people or suppliers. This will be reflected in the quality of the information in the project plan.
Your project plan will also discuss the project schedule and when you will be getting the app/product/service to market. The schedule will have deliverables and performance milestones so you can show the investor that you are results driven and that you thought out how you plan to achieve. This will also give the investor an opportunity to analyse what you are doing and when so they can see if there are any pitfalls you may need to mitigate.
All good investors want to do their due diligence when investing. A well thought out and structured project plan can give an investor something to think about, ask the right questions, show your professionalism and if you have competition with attracting an investor, be the extra tick in the box to get the funding.
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