How to prepare for your first investor meet?
Getting ready for your first investor meet seems to be a confusing task. Have a quick peek through to avoid such situations...
Starting lean or bootstrapping are great ways to start a business but at some point in time the business will need funding. From approaching venture capitalists to angel investors or crowd funding campaigns, there are multiple options to raise funds.
An angel investor or venture capitalist meets possibly multiple entrepreneurs seeking investment. When it is your chance to meet an investor being under prepared is a sure shot way of getting rejected. However, by preparing your investment pitch smartly and following some basic etiquettes you could increase your chances of a successful pitch. Here are five such tips to follow when getting ready for your first investor meet:
Be prepared and know your investor's history
Before approaching the investor for a meeting there is plenty of home work you should do as an entrepreneur seeking investments. Preparing yourself mentally and technically holds the key for a successful outcome. Have a rough plan where you could start a conversation with the investor at some point. The more questions any investor is able to ask you the more chances of his or her getting interested in your company or product.
Make sure you are aware of the history of the investor including a brief of their professional profile. Know the kind of companies they have invested in. Brushing up on their twitter feed or blogs could also help you get an insight into what they are likely to communicate.
Reveal your story
As much as the investor is interested in your company and the product line, the pitch should include your own story. From your previous experiences to reasons why you started on this venture will not only help build an element of trust but will ensure the investor is able to understand what the project and its success may mean to you. More than the business, the hunger and passion to drive the business may sometimes be a deal clincher.
Offer clear financial roadmap
Offer a clear financial roadmap to the investor highlighting exactly where the company would be utilizing the funds. Asking for investment but not being able to justify where the funds would actually be used does not auger well for a successful pitch. Having a clear financial plan in terms of money needed and repayment plan is likely to act as a boost for possible investor nod.
Overpromise is best avoided
Many entrepreneurs in their quest to satisfy the investors end up overpromising including some aspects which may not be clear. Having clarity that some aspects are still uncertain is a better option rather than overpromising which may give an impression of desperation to seek funds at all costs.
Be prepared to face rejections
Even with the best of business plans and projections there is a high chance that you may have to face investor rejections. Be mentally prepared for failure or investor rejection. Do not let self- doubt arise if some investors decline you the investment you may be seeking. Learn from your mistakes and keep pitching till you are successful.
Meeting an investor is one of the most exciting parts of being an entrepreneur. Do not let the lack of preparation spoil the moment and cost you a possible investment in your business setup.