Investors for your business will consider quite a few things before they put their money where their mouth is. Oftentimes this includes your team positions, titles, and responsibilities. A track record proving your success, and an awareness of your competitors. But, what are other things that can attract investors for your business? The person you are meeting with for investments or loans wants to know how you plan to make the money back, and when you plan to see a return on their investment. Be sure to have an idea of your projections that are included in the business plan, because you will probably be expected to answer questions about them.
These are the three main items you need to discuss:
- How much are you asking for?
- What will it be used for?
- Will it be a one-time ask or if you will need another round of financing in the future?
If you know your business plan, you can be ready to answer just about anything that may be brought up. And having your business plan with you can be something to leave behind with them for review, or a handy item to point to when you want to show off your charts, graphs or photos of your products. An investor needs to see a viable, proven strategy for making a significant profit within an allotted time frame. They need to know that they will make a very secure, handsome profit in return for their investment. But also that there is a clearly defined, effective exit strategy in place for them to actually withdraw their profits.