Approaching investors can be a bit nerve-racking, especially when it’s your first time. Investors are very careful with their decisions and want to make sure that you are the right person for the job. Researching and preparing for such events can help put you in a better spot during the meeting, and you might have even opened the opportunity for a second session.
Just like an employer, there are certain boxes that each investor wants to check when it comes to choosing, and as an entrepreneur, you should try to meet those standards. Here are some things to keep in mind before getting there.
You should have a wide view of your business and how it’s going to affect the environment around it.
Which market are you trying to serve? How big is that market? Is there a demand for your service in that market?
This is where you need to offer your solution, the benefits that you are offering to that market, and how it’s different from other existing solutions.
You need to address how you are helping, what you are doing to help, in what way will it affect the market, and how will the future of that market look like with your solution applied.
Confidence and extensive knowledge of what you are talking about are key points here.
If you are a one-man-show, then chances are you will not be able to do all the things you promise. To make your solution practical, you need to have a well-rounded team.
Be prepared to explain the responsibilities of each member. How are they contributing to your startup? What are their skills?
Apart from being a team, you need to show that you all care about this startup and that you are willing to give it your all to guarantee its success. You can even divide the presenting time among your team members, to emphasize your teamwork. From the way you present and work together, the investors can pick up on the chemistry between you and whether or not you are team players.
What actions have you taken before seeking investors? It is never right to be all talk, especially when presenting your business. You need to show how you have previously engaged with clients in that market, and what you have built so far in terms of an MVP (Minimum Viable Product). Your business should also have a website and social media page.
You want to show them that your business has been successful until now and that all it needs to grow even more is an investment. Presenting real data to the group can be quite impressive and can show committed you are to your business.
4- Connection with the investors
While trying to raise funds for your business, connecting with the investors can be a great advantage. You want to show that you are a capable and trust-worthy person. The importance is to be someone they will not forget easily.
Share a bit about yourself and your background before starting the presentation, engage with them through questions, and accept their feedback.
First impressions are also based on appearance; wear proper clothing, speak with a professional tone, and listen to what they have to say. Present yourself as a reasonable and trustworthy entrepreneur.
Knowing what to expect from these meetings can help you prepare for it more easily. Just through simple actions, you can put yourself in a better position during the session, and might even be favored by an individual, or leave a good impression on all of them.
The goal here is to interest them enough for another meeting, making them want to hear more about you and your business.