Small Business- Finding Investors
What Investors Want to Know
The odds can be against you as you approach the realms of free enterprise. Positioning your company correctly in a place in the market with a market-driven idea is the 1st step to enhancing your odds of attaining a successful outcome.
Bringing together a great business team and finding people to invest in your company is the next step you'll need to take.
Consider the following questions when you are looking for investors. You should know the answers to these questions when you ask someone for money.
1. Which need in the marketplace does your company fill?
2. What product or service do you offer and how does it fill the need?
3. About how much cash is spent in the market you are thinking of entering?
4. What does your company do to bring in income?
5. How much is your company going to make in relation to the market?
6. What is your plan for attracting customers?
7. How much of your profits are you going to spend on marketing?
8. Who is the management team?
9. Why is your management team qualified to do the job?
10. Which businesses are you in competition with?
11. How much money does each of your competitors make?
12. What differentiates you from your competition?
13. What is your plan for striking the competition?
14. How much cash are you planning on raising?
15. What are you going to use the money for?
16. When is the exit?
17. What are the benefits to your investors?
While you endeavor to put together a reply for each of these questions, you will notice that some of them are really hard to answer. You'll also soon find where your shortcomings lie. Money mainly wants to know how it gets repaid and your duty as an entrepreneur is to illustrate how that happens.
I recall the first time I attempted to apply my new understanding about how to present a deal to a venture capital group. I had previously been taught these tips by an expert capital-raiser. Using his method of clearly painting the picture of how the money makes money, I got a $1 million subscription agreement in 5 minutes- though, it took twelve months of preparation and relationship building!
About the Author
Rod Alan Richardson has dedicated his life to teaching people to succeed in free enterprise through Small Business Training. He also offers a free Business Training Newsletter
Tell others about
this page:
Comments? Questions? Email Here