Investors will be very interested in how you price for your product or service, and they will also want you to demonstrate your deep understanding of what the market will bear for your offer. We had an example of an entrepreneur offering a translation service, which did excite the interest of one of our Investors. He’s a savvy individual and tapped the relevant search terms into Google – he found numerous platforms offering the service for free and other individuals offering more or less the same thing for a third of the price. When asked to justify the difference, the entrepreneur highlighted what were in his view, premium ‘bolt-ons’ comparative to competitor services (which were inclusive in his offer). The Investor found it very difficult to ‘value’ the premium offer against the competition and wondered about the wisdom of the strategy, so he didn’t invest. If your business has lots of competitors, this is not necessarily viewed dimly by a potential investor as it proves the need; however in those types of markets proven competitiveness is a must, combined with easily understood USP’s and world class service. It’s the combination of these things within the context of a sustainable and scalable business that marks out the entrepreneur who attracts the Investment.
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