17 Questions Investors Will Ask

ign="center">9. Why is your management team capable of doing
Most small businesses fail within the first five years.their job correctly?
This fact can be a little discouraging for new business10. Who is your competition?
owners. Positioning your company properly in a11. What is the average income of your competitors?
market space with a market-driven idea is the first12. What differentiates you from your competition?
step to enhancing your odds of attaining a successful13. How will you pound the competition?
result.14. How much capital are you raising?
Assembling a good team of players and attracting15. Where will the money go?
capital is next.16. When is the exit?
Keep in mind the following questions while you're17. How much do the investors get?
searching for seed funding and startup capital. YouAs you do your best to create a response for all of
should know the answers to all of the followingthese 17 questions, you'll realize that some of them
questions as you request money from investors.are really hard to answer. You'll soon understand
1. Which need in the marketplace have you identified?where your shortcomings lie. Investors primarily seek
2. What is your business and how does it fill theto know how they'll get repaid and your task as the
need?owner is to show how that happens.
3. How much money is consumed in the marketI now think back to the first day I attempted to
you're approaching?apply my new knowledge about how to present a
4. How will you make income?deal to a venture capital group. I had previously been
5. How much money will your company bring in intaught these tips by an expert capital-raiser. Using his
relation to the market?method of simply making it clear to them how their
6. How are you going to attract consumers?investment will generate more wealth, I obtained a 1
7. How much (percentage-wise) of your income aremillion dollar subscription agreement in 5 minutes-
you going to devote to marketing your productalthough, it took twelve months of preparation and
service?relationship building!
8. Who is the management team?