Your future as an entrepreneur depends on your skills and in your business acumen. While you may not know everything right off the bat, you must know how to handle important investor meetings. Nothing happens on its own unless you have the vision and conviction of your business, and be prepared to share those in the meeting. Work out a game plan by simulating various scenarios that may crop up in the meeting. It is only through proper preparation that you can gain confidence and present successfully, even if you do not always tick the right boxes with your answers.
Start with an agenda
The preparation will revolve around the agenda and the purpose of the meeting, such as how to woo investors for funding in your startup. Begin by presenting yourself as a true entrepreneur who believes in what he says.
Investors would like to know how you went about launching a startup. What is your background, what experience you have in the field and what prompted you to take a plunge should be clarified with conviction. Talk about your team members. Investors are not only interested in your business features. Rather they would like to gauge the passion and hunger of the person driving the business and with this knowledge, they will gain confidence in his abilities to run the show and make it grow.
Speak unequivocally about what you want to do with the money. Leave no room for any doubts. Be very specific about the purpose and where and how the money will be spent. It has to be made clear that you are not asking the money for the heck of it but that you know what you will do with it. This will show that you are very clear in your mind about the way forward and that you are committed to succeeding. It generates confidence in the investors if you can convince them that you will use the money for the best outcome.
As you are inviting investors to gather stakes in your company, be clear about how much equity skates you will offer to them. The distribution has to be realistic, and it should be motivating for you as well as for the investor. Giving away too much may result in you losing interest in the business, and giving away too little is of no interest to the investors. Work out the numbers with a rationale that results in a win-win situation for all. Know what is the breaking point and work within those boundaries.
Be honest and realistic
Be honest and owe up to the limitations and uncertainties that the startup may face. Do not paint a rosy picture as this will raise doubts in the minds of investors. Do not hesitate to accept and explain the reality and never pretend to know all the answers, as a matter of facts, demonstrate that you are open to their input and expertise.
Make the best use of the opportunity by doing your homework and don’t miss out on a good one when it is presented. Getting investors to agree to a meeting is sometimes half the battle, now it’s up to you to show them that your startup is worth investing in. Stay tuned for more tips and tricks of the trade.