Don’t Get Carried Away

Don’t Get Carried Away Talking About the Product

Both you and the investor are there for one thing.  Money.  By agreeing to meet with you the investor is assuming that your business is viable. Of course you should spend the first few minutes explaining the product or service that you supply, but your meeting should be focussed on the financial opportunity. Spend time talking about how much money you are seeking, the percentage of the business that will represent, the number of investors you would allow and specifically what you intend to spend it on. An interested investor will ask more about the product if they need to.

 7. Don’t Forget your Appearance

When attending pitch, make sure you look the part. This doesn’t have to mean a suit; but it does mean a clean professional outfit and groomed hair.  It also means you have to be aware of your body language. Make sure you maintain eye contact. Don’t wring your hands or put them in your pockets.  Don’t fidget from one foot to the other. The investor will make allowances for nerves, but fidget too much and you look like you’re hiding something.

8. Don’t Talk in Acronyms and Don’t Read a Script

Your presentation should be clear and concise. Don’t use acronyms the investor may not have heard of. Don’t use bad language. And don’t read off cue cards or the presentation. Instead present yourself as passionate and enthusiastic. Communicate what your idea is, why you think it’s great, and why it will be a financial success. Remember though, there’s a fine line to being opening enthusiastic and coming across as a slick salesman. Find the right balance.

9. Don’t Forget to Provide an Out

Show the investor how they’re going to make money. Provide one to three year projections. Investors don’t want to be your partner for life; they want to make their money and get out. Whether that’s selling to another company, going public or letting you stand on your own two feet. 

10. Don’t Forget to Seal the Deal

So the pitch went well, you felt like you connected well with the investor, now you need to close the deal. Follow up with a phone call after the pitch. Ask the investor if they have any further questions or concerns you can help with. Ask outright if they are looking to invest. If they are, schedule a second meeting.

 

Be prepared to hammer out the details quickly and efficiently. The longer you take to respond to questions or requests for information, the less likely the deal will be completed. Remember, investors are not only looking at your business, but many others, and if one of those is quicker or smarter in supplying details, your deal will be replaced by someone else.

Before you Seek Investment, Get your Business Plan Reviewed

Looking to approach an investor but feel like your business plan may need tuning up? Make an appointment with one of our business advisors who can objectively review your plan, providing feedback and resources to help you for your presentation to potential lenders or investors.