Mark Palmer, Negosentro | For a business to succeed, many factors come into play. For instance, you have to plan strategically and develop thoughtful services and products. However, the most crucial aspect is funding. You need money to produce the product, build infrastructure, pay employees, and market the final product, among other activities.
Many business owners approach angel investors for funding. Although the ultimate prize is raising money from an investor, even the opportunity to talk to one is a huge milestone for your business. If you prepare well, the investor is likely to see potential in your idea. Proper preparation makes one feel confident and it increases the chances of reaching a successful outcome. If you are planning to meet people with the ability to write big checks, consider these guidelines.
1. Research the investor
Some people reach out to all potential investors they know. Although the proverb of leaving no stone unturned might work in some instances, it could make you waste your precious time when looking for funding. The truth is that majority of the angel investors we have today specialize in certain businesses. They could be interested in a particular industry, in ventures that yield definite returns or in a specific developmental stage.
The best way out is to research thoroughly on the investor using public information like news articles, their websites or even through social media. Analyze their portfolio and understand their backgrounds, successes, investment preferences, interests and failures. You may contact entrepreneurs who attempted to get funding from them previously. Remember that investors also bring on board influence, experience and market awareness.
2. Write an in-depth business plan and executive summary
Potential investors will want to review your business plan as well as the executive summary before they meet you. An executive summary highlights the pertinent details regarding your firm, your target market, and your services and products. Make sure you tailor the summary according to the investor you are trying to reach.
The business plan identifies the key milestones that you plan to achieve with the assistance of the investor within the next 18 months. You may also approach Chicago resume writers for a captivating resume that you can present alongside the plan and summary. Although you want to capture the investor’s attention, your write-up should be realistic.
3. Prepare and practice your pitch
Your pitch should be sales-oriented; in that, the investor feels convinced that your company is an ideal investment opportunity. A chart on the side and some images will bring life to your presentation. You shouldn’t take more than 30 minutes to make the presentation. Spend about three minutes on every slide. Your slides should be a summary of your presentation and not the other way round. If an investor interrupts to ask for clarification, do not allow it to rattle you, regardless of how rude they are. Make sure that the meeting is professional and structured; the investor will be looking at this aspect too.
4. Estimate how much money you require
The potential investor will want to know the exact amount of money you need and what you plan to do with it. Ask for the sum that will cater for your plans for the coming 18 months. Avoid asking for less money because you fear that they will reject your proposal. Just concentrate on explaining how you will spend the money. Besides that, you also need to come up with a reasonable split of equity between you and the investor. Do not give away too much of the shares and don’t give too little.
5. Focus on your passion and energize your story
Investors view dozens of presentations every month. So, you should show your passion for the idea if you want to make a unique presentation. Ensure that your submission is captivating from start to finish. Particularly, the first minutes should be noteworthy to grab their attention. Now that the investor will also be investing in you and your team ensure you build credibility by explaining your education and background. Let them understand precisely why you are passionate about your products or services.