The questions you ask an investor reveal as much about you and your business as the answers. Many entrepreneurs are focused on acing investor meetings by having the right answers. But what is the most important aspect of your interview was asking the appropriate questions?
It’s crucial to find the best investors for your startup and the stage of development. In addition to the money, they could provide mentorship and connections that can help you expand your business and determine the direction of your business in the years to come.
You should be ready to answer any questions regarding the risks, challenges and potential pitfalls of your company. You should be prepared to explain your plan to overcome any obstacles and show how you are committed to the success of your business.
Be prepared to discuss any investment contract. Meet with investors to negotiate the most favorable terms for your business. This will include the percentage of equity you are willing to forfeit in exchange for funding, and any other conditions you might have in exchange for the investment (such as an agreement to raise funds for follow-on projects or a specific timeframe for a return on investment).
You must be able to demonstrate how your unique value proposition could bring in a significant return to your investor. This is an excellent opportunity to highlight your business’s unique features and show how they will create a positive impact on the market.