Attracting a potential investor's attention to the extent that he invites you for a meeting is very difficult. However, many entrepreneurs often fail to invest the same effort in preparing for the meeting. That's a big mistake, a typical example of a missed opportunity. The fact that an investor is willing to listen to you does not mean he wants to do business with you.
So how should you prepare properly? Do not repeat the same mistakes many entrepreneurs have already made. Entrepreneur.com pointed out the following unnecessary mistakes entrepreneurs make when pitching to investors.
1. You need to know who you are dealing with
The enthusiasm of being invited for a meeting often blinds entrepreneurs so much that they forget to find out who they are actually going to present their business to. You should always know what the investor is interested in and what projects he invests in. Find out what he has invested in lately in your industry and think about why he might be interested in your offer.
2. Do not rely on the presentation
Preparing a presentation to present your business in a compelling manner is a good idea. However, if the investor interrupts you and starts asking questions, do not necessarily return to your prepared speech or projection of the materials you prepared. Answer the questions and have a conversation, not a monologue.
3. Do not say you have no competition
There is always some competition. If you argue otherwise, you will lose the investor's confidence. Carefully prepare your competition analysis. You need to know what alternatives are available for your customers on the market and why they should change their behavior and start using your products.
4. Beware of unfounded estimates
Investors want to see hard data. They want to know how you will make a profit and how big the profit will be. If you are just starting out and do not have a history which you can use to predict your future development, build your estimates on other players in your industry. Always present measurable data.
5. Do not leave without learning the next steps
Whether you did well or not, you should never leave without knowing what further steps will follow. Do not be afraid to ask how you did. If you made a good impression, ask what other information the investor needs and what will happen next. If you did not perform well, and it is obvious you have not won over the investor, thank him for the opportunity and ask whether he could recommend you another investor. Also ask if you can inform him about the future development of your business. You never know, you might even become partners someday.
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