If you are a new entrepreneur (with little experience working for someone else), how would you demonstrate your credibility to investors while pitching your business?
The team is one of the core things that an investor buys into. Which seems to put young entrepreneurs at a significant disadvantage.
Let's first look at a few groups of investors:
The first step is to generate revenues with your new venture. That speaks beyond experience. Then target angels in your community. If you can't find them, try to find a center for entrepreneurial services in your community. You can also look at groups like Vistage and others that get entrepreneurs together in a group setting once per month.
Someone always knows someone who can help you.
Chris covers the typical parties which are considered investors, but there's another, often overlooked, party that can also be an investor - the Customer.
Convincing people to buy your product is another way of demonstrating credibility, either to other customers, or investors, or future founders/team.
So - how do you convince a customer to buy something from someone with no track record? Make a compelling business case and then remove all the major risks for them.
For example, if your potential client is worried about whether you can deliver, figure out how they will pay after you've delivered.
If they're worried about you going bankrupt and not having access to your product, figure out how to put it in escrow.
If you run software and they're worried about the data storage, offer to store it on their hardware. etc.