Are you preparing to meet with an investor? Investors often hold the key to a business’s success. They can loan or give you the money needed to grow your business’s operations into a thriving enterprise. If you don’t make a positive impression, though, you may walk away empty-handed. You can increase your chances of striking a deal, however, by doing these five things before meeting with an investor.
5 Things You Should Do Before Meeting With an Investor
The more you know about the investor, the better you can pitch your proposal. It’s always a good idea to research investors before meeting with them. Assuming you know the investor’s name — which you should — you can search for him or her online. The investor may have a LinkedIn company, or the investor may have a profile on his or her investment firm’s company website. Using these sources, you can gain a deeper level of insight into the investor’s personality and investment practices.
#2) Prepare Your Business Plan
You should prepare a business plan before meeting with the investor. A business plan, of course, is a formal document containing information about your business’s short-term and long-term goals. It should provide specific information on what your business does, what it plans to accomplish — and most importantly — and how it will accomplish them. With a business plan, the investor will have peace of mind knowing that your business is on the right path.
#3) Perfect Your Pitch
Don’t underestimate the importance of perfecting your pitch. When you step in front of an investor, you’ll have to convince him or her that your business is worth investing in. Known as a pitch, it can be the deciding factor that determines whether the investor finances your business. If your pitch isn’t convincing, the investor will probably reject your offer. You need to create a compelling and convincing pitch that projects mutual benefits for both your business and the investor.
#4) Define Demands
Before meeting with the investor, determine how much money you want to ask for. If you ask for too little, you may not have the funds to effectively grow your business. If you ask for too much, on the other hand, the investor may walk away. To strike a successful deal, you need to ask for the right amount of money that allows your business to grow and, therefore, achieve its goals.
#5) Dress for Success
The clothes you wear can affect whether or not the investor finances your business. Regardless of where you are meeting the investor, you should dress professionally by wearing formal attire. Showing up in jeans and t-shirt won’t create a positive impression. The investor will perceive this as you being unprepared, in which case he or she probably won’t finance your business. If you wear a suit and tie, however, the investor will acknowledge you as being prepared.
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