Okay, so you have watered your startup seed into a healthy plant and are now at the verge of the next step, the step that demands a lot of monetary input to grow this plant into a fruitful tree. Yes, we are talking about all you who are in search of funding for startup. Are you prepared enough for this huge leap?
You surely have questions about how you should present your startup to the investors, this post tells you exactly that.
1. Know all about your investor
First and foremost, you should be well aware that you are approaching the right person, who has been in past interested in the domain that you are from. list out the people who have been investing in that domain and reach out to people who have got investments from them. learn about their experiences. Attend Startup events which help you interact with the potential investors. And the best way to know about how investors work is to read about it.
2. Don’t ever show your desperation for that funding
We are talking business, you don’t have to put forth your self as a team that will need the funding to survive, you have to present yourself as a team that is doing well and will do wonders with the funding for startup. Remember , if you show your self as desperate and weak the investors can push their terms on you very easily.
3. Have your stats ready about the traction and how the market is ready for your product/service
The last thing that you should be saying to your investors is that you are still creating a market for your product/ service. Make sure that the demand is there already and will grow in days to come. have your facts and figures ready for the amount of traction you have.
4. Be debt free and have some cash at hand when you approach investors
Make sure that your credit report is clean when you approach investors. have some cash available and no dues pending. As it is all about money, these details are verified thoroughly.
5. Be prepared about the questions they may put up to you
Before approaching the investors, make sure that you have talked to fellow entrepreneurs about the kind of questions investors ask. You should make due effort to get answers to these questions in context of your startup.
6. Be complaint and have appropriate licences
Be sure that what you are doing is not being done illegally, you need to have proper licences and be complaint, you would never want to cut a sorry figure for your self and your startup in-front of an investor. When an investor find out that you are making the effort to get all things in place, legally, it adds value to your position.
7. Have a detailed business plan and a crisp sales pitch
Sometimes all you get is a brief 5 minutes to say it all. have that crisp and impressive sales pitch ready in your head. Along with that make your business plan is detailed it answers questions about your realistic goals, your competitive advantage, clearly defines the roles and process in your startup. Your business plan is a mirror to your road ahead.