Focus on the right kind of investors.
Initially, you should make inquiries about potential investors who already have demonstrated an interest in your business category or industry. One way to find such investors is to post a detailed personal and business profile on a platform like AngelList or LinkedIn. Since you are primarily looking to fund your venture, prioritize the former.
Ensure your business plan is airtight.
Obviously, you need to start off your efforts armed with a company name, info, and logo. Investors need to put a face to the business they are evaluating. Follow this up with a short profile about your company's background, the market need you've identified, and how your company will meet this need. Talk about how you plan to get your offering to your customers, your marketing and distribution channels, and communications strategy. Include a revenue model, describing the sales cycle and process you intend to use, to efficiently drive home the need for your product or service offering.
Let the money come later.
Clearly, you need an investor's money or you wouldn't be talking to him or her in the first place. But that should not be all you talk about in the first meeting. Investors are interested in your business's details, and why you are passionate about it, and not just how much you need.
Investors like to hear the truth. Though they want to make a profit, of course, they don't want you to offer bogus claims. So don't make promises you're not sure you can keep. When calculating income projections, make them as realistic as possible and consider all plausible factors. The golden rule to selling your business is to "under-promise and over-deliver."
Take criticisms in good faith.
Steel yourself for criticism. And take all the negative feedback that may come without lashing out. If need be, go back to the drawing board to make necessary adjustments to prepare for your next investor meeting. Remember, too, that it's best to accept rejection without being nasty to a potential investor because someone who's not interested in you today might be tomorrow.
Read the full article >