Impress Potential Investors: a Step-by-Step Guide
Meeting with potential investors requires crucial planning and preparation. You must be well-equipped with the knowledge that will entice investors and show off the value of your company. Impress your potential investor with information on growth potential, your business concept, and evidence of your customer connection. Make sure you know how you can close the meeting with a “yes” and what specific steps you should take after the meeting.
Here are tips on how you can present your company’s profitability competence at your investor meeting:
Know Your Numbers
Have a very solid presentation that will provide information on profit margins and growth potential. Don’t overwhelm your investors with a barrage of information and lengthy plans. Keep your investment plan short and sweet with a lean, succinct one-page business model. Stand out as one of the businesses that doesn’t provide extra padding of information that the investors must sift through. Include imperative information like your profit margin percentage — which should be around 40 percent — and how your margins may adjust as competition in your market grows. Present information that pertains to the value of your business within the current consumer market and the statistics for anticipated marketplace growth. Growth potential is evidence that your company is capable of longevity and will remain stable in the market.
Explain Your Business to Potential Investors
Have a solid grasp on your business concept so that you can efficiently articulate in your meeting with potential investors. Present your business concept through an analogy to paint a clear picture of what your business can achieve. Explain the novel aspects of your company. What sets you apart from the competition? What kind of need-based service or product will you provide? Acknowledge your competitors, though let investors know that your business provides something that cannot be replicated. Elaborate on the success you have achieved thus far– highlight exemplary employees, profits, innovation, customer engagement– and your plans for revolutionary growth. Show the investors you’ve cultivated a strong, passionate, talented team that excels at customer connection.
Closing the Meeting
Make sure you’ve touched base on all the information that you feel your investor should know about your company’s competence and veritable success. At the end of your presentation, touch again on the equity capital, so the investors are left with an idea of the kind of profit they can reap from their investment. Ask your investor if they have any questions about your business or the specifics of what their involvement would entail.
Your two goals of the meeting should be an enticing presentation of your business and a nonbinding investment agreement. You can approach this nonbinding agreement as a verbal agreement, accompanied by a handshake, or as a letter of intent. You can draft and send your investor a legally binding agreement, or stock purchase, following the initial verbal or written contract.
Make sure to express your gratitude for the time the investor has spent with you. Send a thank you card and a small gift basket to make them feel appreciated. Send your investor an artfully arranged sampling of your company’s products or some pieces of marketing merchandise that will welcome them to the team.