Any small business owner will understand the importance of investors hence when it comes to putting your pitch in front of investors, you will find hundreds of articles online explaining that but what most people do not talk about is what not to do in an investor meeting which we have discussed below;
Investors are keen to see how you are going to utilize their money in your business hence provide then with a clear business plan for them to understand this.
2. Taking the Pitch a Notch Up:
Investors take an interest in businesses which has a different vision than others. Most businesses are interested in investor money to just use it as funding in current business and make profits but not many think about how to use the money to grow the business and take the level up a notch. Plan to invest a part of the investor money in a profitable area such that the continuous profits can be used for business development. According to svenhegel.de, trading is a viable option, businesses should think about investing in to make a good side revenue apart from the main business.
3. Taking too Much Time to Pitch:
When the investors interact with you, do not take too much time to answer as they have a short attention span. Just keep your answers short and to the point or else they may cut you in between just to get your interview over with.
4. Losing Confidence:
Investors are looking to invest in business owners who are confident at what they are doing. If you lose your confidence in the meeting while answering them, they will sense it immediately and you will fail the interview.
5. Being Vague:
Investors are giving you their valuable time for you to explain every detail accurately hence do not make your points vaguely. Do not round off any numbers, give them the exact decimal numbers so that they know you are serious about your business and you know what is happening in-depth.
6. Presenting Incorrect Business Valuation:
Do not give the investors wrong company valuation numbers just to impress them, at some point they are going to verify the figures and if they do not match, your business will be blacklisted from their list.
7. Not Knowing Your Business Risks:
While you can speak highly of your business, do not make promises which are not true. If you pitch to them that your business idea is so solid that your company will not lose money, that is being overconfident. You need to acknowledge that any business is risky, and you do know the risks involved in what you are doing. Investors like to hear the business truth, the way it is.
8. Only Talking About Your Expertise, Not Your Team:
Investors do not just invest cash on you but your team as well hence do not only speak about your qualifications. Present them with details of a qualified team who will execute your ideas. This will help the investors to build more trust in your business ideas.
9. Asking Investors to Sign an NDA:
Asking your investors to sign an NDA (Non-Disclosure-Agreement) may seem to be too trivial at this stage as investors do not have time to steal your ideas. They meet many entrepreneurs giving them great business ideas. This will only demonstrate a lack of prioritization and a sign of distrust. You do not want to make your investors feel that way when you really need capital.
Nailing an investor meeting is not as difficult as most people make it sound. Be true towards your business and give them all the figures. If they understand your business goals, they may be interested to invest, if not then do not get bothered. If your idea is worth it, very soon you will find a good investor.
Published by Guest Post