5 Things To Expect When Meeting with An InvestorMar 10, 2023
Meeting with an investor can be an exciting and nerve-wracking experience. You may have a great idea or business plan, but you need financial backing to make it happen. Before you go into a meeting with an investor, there are five things you should expect.
- A thorough evaluation of your idea or business plan
The investor will want to know everything about your idea or business plan. They will ask you questions about your target market, competition, financial projections, and more. Be prepared to answer their questions honestly and thoroughly.
- A focus on the potential return on investment
Investors are looking for a return on their investment. They want to know how they will make money from your idea or business. Be prepared to explain your revenue model and how you plan to generate revenue.
- A discussion of the terms of the investment
Investors will want to discuss the terms of the investment. They will want to know how much money you need, how long you need it for, and what percentage of the company they will own. Be prepared to negotiate these terms and be open to compromise.
- A review of your team and their experience
Investors will want to know who is on your team and what experience they have. They will want to know if your team has the necessary skills to execute your plan. Be prepared to discuss your team's experience and how it relates to your idea or business.
- A decision
After the meeting, the investor will make a decision whether or not to invest in your idea or business. If they decide to invest, they will send you a term sheet outlining the terms of the investment. If they decide not to invest, they will give you feedback on why they made that decision.
It's important to remember that meeting with an investor is just the beginning. If you receive funding, you will need to work closely with the investor to ensure the success of your idea or business. If you don't receive funding, don't give up. Take the feedback you received and use it to improve your idea or business plan. Keep working hard and seeking out opportunities to get your idea or business off the ground.