17 Questions Investors Will Ask
Most small businesses fail within the first five years. This fact can be a little discouraging for new business owners. Positioning your company correctly in a place in the market with a market-driven idea is the primary step to enhancing your likelihood of arriving at a victorious outcome.
The 2nd step is to gather together an excellent team and start finding sources of income.
Keep in mind the following questions as you seek for investors. You'll need to know the answers to all of the following questions as you request money from investors.
1. Which need in the market does your company fill?
2. What is your business and in what way does it fill the need?
3. How much money is consumed in the market you are thinking of entering?
4. How does your business generate money?
5. About how much will your company bring in in relation to the market?
6. What is your plan for attracting consumers?
7. What will your marketing budget look like?
8. Who is on the management team?
9. Is the management team good enough to properly manage your business?
10. Which businesses are you in competition with?
11. What is the average income of your competitors?
12. How are you different than the competition?
13. How are you going to beat the competition?
14. How much capital are you raising?
15. Where will the money go?
16. What is the exit?
17. What will the investors get out of it?
While you endeavor to put together a reply for each of these 17 questions, you'll discover that it is a surprisingly arduous task. You'll also understand where your weaknesses lie. Money mainly wants to know how it gets paid back and your responsibility as an entrepreneur is to show how that happens.
I now think back to the first day I tried out my new understanding about presenting a deal to a group of investors. I had been mentored by a fabulous capital raiser. Using his method of illustrating how their money will make more money, I secured a 1 million dollar subscription agreement in just five minutes- it only took a year of preparation and relationship building!
About the Author
Rod Alan Richardson is dedicated to teaching people to succeed in free enterprise through Business Training. Mr. Richardson believes he can change the world by putting people on the path to Transcend Money
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