Now you have to impress the individual and prove to him or her exactly why they should invest their cash in your new product or service. So how exactly do you go about doing that? Here’s a few tips that should stand you in good stead.
Who are these investors? What makes them tick and what are they interested in investing in your company. Get the answers to these questions before you even turn up for the interview.
Be prepared to be able to explain your project well. Make your presentation concise but reasonably detailed. In fact, you should practically have it memorised. Show how it can make a dent in the sector you’re targeting.
Think about the questions a potential investor will want to know and have the answers prepared beforehand so that you can bat them back off pat.
Let the investor know what he or she has to gain by investing in your company. At the same time let them know how much you yourself believe in it and how confident you are that the company will be a success – back this up with realistic forecasting.
You don’t have to stick with – or approach – just one investor. Remember you’re interviewing them too to make sure they’re right for your company. Will their knowledge be good for the business? Are they the type that prefers to be a silent partner?
Never wait until the last minute to seek investment – i.e when you realise you’ll be struggling to pay your suppliers next month. Being desperate shows and it also puts you in a poor bargaining position.
It’s also worth remembering that, although the investor is (hopefully) providing the funding for your company, it’s actually YOU they’re investing in. That means they have to believe in your abilities to run the company and what kind of partner you’d make. Show that you’re trustworthy, capable and someone who comes across as likeable.
Raj Dhonota is a serial entrepreneur and investor. He grew software development company Igniva Solutions from zero to a team of 400 with a turnover of around £2m per year.