How to Impress a Potential Investor
Many small businesses require funds to get their operation off and running. Most small business owners don't have the personal funds to foot the bill and must turn to investors for aid. In order to get someone to invest in your idea, you have to really show that it can be a success. Follow the steps below to impress potential investors.
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Instructions
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Choose a potential investor wisely. It should be someone you have already established a trusting relationship with. She can take you at your word and, in turn, can be honest with you as well.
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Mention your business idea in casual discussion, without any indication that you need funds. Listen to his feedback and questions because they will give you a clear picture of what you need to do in order to secure an investment later.
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Determine the consumer problem that your product or service will solve. Be sure that the problem is legitimate and universal.
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Have a strategy, a business plan (see Resources), prepared for running your business. Be sure to address issues such as management of the company, marketing, and how you plan to spend the funds your receive.
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Do research on the competition, the current market for your product/service, and trials on the target market to see if they respond well. This information needs to be part of your business plan and presented to the potential investor.
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Arrange a formal meeting with your potential investor, even if she is a friend or family member. Present yourself in a professional and dignified manner, to show her that you are serious about this venture.
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Start with the potential risks of the investment, because putting your cards on the table from the start shows that he can trust you. Then, counter with the success potential that this business venture has, working to show many more pros than cons to his investment.
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