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When developing a new product or service, it is vital to provide a clear solution for your customer or intended end user. Describing a clear solution is crucial not only for your customer and end-users but also for potential investors.
Investors will see value in a clear solution presented to them in one or two short sentences that quickly sum up and describe what your product or service is and what purpose it serves.
Time Is Money
As the saying goes, time is money. If you have secured a meeting with a potential investor, it is best not to waste any of your time or, more importantly, any of theirs. Investors are often very busy people. If you’re going to pitch to an investor for funding, you need to ensure that your product or service has a straightforward solution that can be easily explained and is simple to understand.
This makes life easier for both you and your investor. If your product or service has a clear solution in your pitch, it means you will probably get put on the spotless, avoiding all of the difficult questions. It also shows investors that your product or service is well thought out and fills a gap in the market. You avoid over-explaining it and the risk of confusing your investor.
Investors are less likely to provide you with capital if your idea, product, or service is overly complex and confusing. Therefore, having a clear, easy-to-understand, and digestible solution is crucial.
A Clear Solution Leads to Success
Defining a clear solution shows that you have undertaken adequate research to find a hole in the market that is not being filled. This indicates that your service or product serves a purpose that nothing else on the market is currently doing and makes your potential investor have more trust in both you and the product or service you are offing.
By defining a clear solution, you can easily communicate the key most important aspects of your service or product in the shortest amount of time. Doing this shows investors that you appreciate their time and can communicate effectively.
The Elevator Pitch
You likely already know this, a short pitch to investors that generally lasts no longer than about two minutes. It is vital that you can be ready to give this pitch at any given moment when an investment opportunity arises.
It is a way to sell your product or services and lure in more investment capital by giving the potential investor the rundown of who you are and what you do. If you can master the elevator pitch, the chances are that potential investors will give you the time of day, and by having a clear solution, you might land yourself a meeting that could secure capital for your business, product, or service.