Potential Investors Need Answers to Certain Questions
Achieving success as a new business owner can be very difficult. Aligning yourself appropriately in a certain market with a market-driven idea is the primary step to increasing your odds of achieving a victorious result. Bringing together a great business team and finding people to invest in your company is the next step you'll need to take. Think about the following questions when you are looking for seed funding and startup capital. You should be able to answer the following questions because investors are likely to ask many of them. 1. What need in the market does your company fill? 2. What is your business and in what way does it fill the need? 3. About how much cash is spent in the market you are approaching? 4. What does your company do to bring in money? 5. About how much money is your company going to make in relation to the rest of the market? 6. How are you planning on finding consumers? 7. What will your marketing budget look like? 8. Who is on the management team? 9. Is your management team capable of doing their job correctly? 10. Who is the competition? 11. How much money does each of your competitors make? 12. How are you different than your competition? 13. What is your plan for striking the competition? 14. How much money are you planning on raising? 15. How are you going to use the capital? 16. When is the exit? 17. What are the benefits to your investors? As you do your best to create a response for all of these 17 questions, you will find out that some of them are really hard to answer. You'll also quickly understand where your inadequacies lie. Money mainly wants to know how it gets paid back and your responsibility as the owner is to explain how that happens. I recall the first day I attempted to apply my new knowledge about presenting a deal to a venture capital group. An incredible fund raiser had mentored me. Using his technique of simply making it clear to them how their investment will generate more wealth, I obtained a 1 million dollar subscription agreement in just five minutes- it only took twelve months to prepare and build relationships! |
