If you have a new business then you will be well aware of how tough it can be to get the finance that you so desperately need in order to make it a success. There are always loans which you can get but let’s be honest, very few of us actually want to start a new business in a position of debt. Thankfully the World is full of people with money who will see you as an opportunity for them to make more money, this will be a mutually beneficial relationship as after all, you need money.
Getting that investment is not always as easy as it sounds and even if you have found some potential investors, you are going to need to make sure that you do all that you can to get it. We spoke to investorchairman who gave us some insight into what he looks for in an investment.
Know Your Numbers
Nothing frustrates investors more than you walking into a meeting with them and not knowing your figures. In fact, you should be armed to the teeth with the figures about your company, you should know sales figures, projected sales, value of the business, percentage of profit versus revenue and every other number that relates to you business. Investors deal in numbers, not emotions and you need to have yours right if you plan on getting that investment.
Even if you do not feel comfortable speaking in front of others, you need to ensure that your pitch is perfect for the investors. If you are not the confident type then you need to work on your pitch until you know it inside out and back to front. The pitch is where you get to give a first impression and you only have one opportunity to do so. Remember the importance of what you are doing and that if it goes well then your company could be in line for a cash injection.
Remember that an investor is not just investing in your product, they are also investing in you and you need to firmly believe in what you are doing and be able to show the investor that too. If you don’t believe in your product or your business, or if you don’t come across in that way, then you cannot expect an investor to either.
Your business model need stop be watertight and be able to stand up to any line of questioning which an investor has. Your business model should not be based on speculation but cold, hard facts. Before you even meet with an investor, you should be working with professionals in putting together your business plan and ensure that it stands up to any test. Be prepared to answer many ‘why’ and ‘how’ questions and if you want to fully prepare yourself then you should think about these questions and the answer before you go to the meeting.