Seeking out investors is one of the most common approaches to secure funding. However, investors aren’t genies waiting to grant your wishes. They are business-minded individuals who are interested in what your company can do for the world and their bottom line. You will need an appointment, to show up on time, and to pitch your venture well. Then, the investor considers if they will offer your business a loan.
So before you talk to another investor, check out these three tips that will help you secure funding:
Tip 1: Talk About Your Track Record
Don’t be afraid to leverage your track record and vouch for yourself!
You’ve spent a lifetime learning the skills and gaining the experience that will allow you to run your business successfully. Be explicit about that in your pitch.
Tip 2: Leverage Your Reputation
Whether this is your first venture or your eighth, there is somebody in the community who knows you and will speak highly on your behalf. You can name drop your references, but be sure you have their permission to do so first. Also, understand that you should only name-drop when it is relevant – not just for the heck of it.
Tip 3: Go In Prepared
Talking to an investor is like interviewing for a new job. You need to go in knowing what to expect, what they will ask, and what they will want to see.
According to Melissa Diaz, one of the #ladyboses behind High Rock Accounting, this includes two years of tax returns, two years of financial statements, bank statements, reconciliations, debt schedule, AP aging, AR aging, personal financial statements (SBA) and officer compensations (1099 or W2). If you have any questions or concerns, seek the help of an expert before seeking your next investor.