How should an entrepreneur Approaching an Investor
If you approach an investor just to get a check, most likely you fail. As interest an investor to invest in your business.
Many entrepreneurs / is needed the capital to start his business. Sometimes they resort to family and friends and to the bank. But there are investors who, in addition to capital, put contacts, expertise and advice.
Last week I had the privilege of presenting one of the entrepreneurs who advise an investor looking for funding.
The meeting was very successful and I think our minds are in sync, which surely will lead to investment and long-term partnership.
Why am I so sure of the results? What was what facilitated the meeting and why I feel that the investor will want to participate in business?
He showed entrepreneurial passion and vision
Although the case had already heard many times (and in fact I’m even beginning to help shape), I was fascinated by the story told entrepreneurship. The reason is simple – eats, breathes and sleeps for your business. His passion shines, is excited to talk about it, not only your business, but the industry as a whole.This makes it incredibly easy to relate to an investor, since it now wants to hear the story.
Also fully you understand your business and your market . He responded intelligently to each question, simply because “knows his metier”. This does not mean being arrogant. On the contrary, he was eager to pass on their knowledge and discuss issues in depth. In this way the investor is involved on a deeper level – the more interactive discussion that can generate, the more likely you get other meetings and the opportunity to get funding.
It was well prepared, with a succinct and professional presentation
Some fail because PowerPoint , misuse quickly kills any chance of an agreement. A thoughtful presentation balances the need to transmit information with limited time to do it.
Too many slides or slides too full of information, often counterproductive. No more than 20 slides, with accurate listings, tables, graphs and illustrations, will feed into the conversation, which is what you should aim for.
A unilateral statement explaining that you talk about all the points on all slides in a linear fashion, most likely, will be the last time you see your potential investor.
In contrast , we have used our presentation as a benchmark; more as a way to illustrate a point to prove the point first.
We achieve this not only because the entrepreneur was at once passionate and knowledgeable, but also because the investor wanted to ask questions, which is natural. We allow you to skip the order and dictate the flow of conversation, referring to our presentation when necessary or where we wanted to cover something new. This resulted in a highly interactive debate.
Did we slide by slide? No. Does the investor read each on their own? If you are interested surely you will very probably find other points that strengthen the information we present.
The presentation is one of the tools you have at your disposal . It is the only tool as many people seem to believe.
He sold his vision and was seeking a long term partner
If you approach an investor with the sole purpose of getting a check, most likely fail. Most investors want to be partners , there are very few today who want to make an investment without a stake in the development of the business.
You have to be able to “sell” your vision and why you want the investor to commit to your business. And it is not only money, but also why you think that investor can help you achieve your vision.
The long-delayed aspirations are recovered and brought back to the front, while all obligations undermine and are not transcendental energies are put aside to focus on the rescue of a new life project.
My advice is to stay away from an investor looking for a long term partner , someone who will be by your side as the business grows, someone who will make money with you and thanks to you. Do not approach an investor like a bank .