Approaching investors to fund your business idea is no mean feat.
From credit reports to a carefully crafted business plan, you often only have one chance to peak investor interest.
And to a large extent, that first meeting will determine whether you get the funds or not.
Therefore, to enter into these meetings with confidence and the possibility of success, here is how you ought to be prepared as an entrepreneur:
What's your story?
As you prepare to pitch your business idea before potential investors, remember it isn’t just about your product or service but rather how you got to this point in your business.
Investors aren’t just investing in a company. They’re investing in the person behind it.
They want people who will work not just diligently but also with zeal and hence make them a return on their investment.
Do the math
Depending on how much the Venture Capitalists and investors are planning to fund, some investors will want a lot of equity and some will want a little.
Whatever the case, ensure that you set a realistic and defensible valuation of your venture.
Be careful not to give so much away that it diminishes your incentive to work.
What is the money for?
Set out a clear cut plan on how you intend to use the investor's money.
If the investors see through that your objectives cannot be met with the investment that you are seeking, then they may not show interest.
They may not always agree with the your ideas, but they’ll see a committed founder who knows where his or her next steps are headed.
Being upfront, transparent and honest when talking to investors is important.
Never over promise, since your first year may have a bit of trial and error. This is where it pays to be grounded and not over optimistic.