| If you are an entrepreneur looking for capital to take | | | | 2) How much money will you need and what do you |
| your company to the next level, understand these 10 | | | | need if for? |
| important steps. Why? Because investors know that | | | | 3) What is the expected ROI and exit strategy for |
| most start up companies fail and most innovative | | | | the investor? |
| ideas do not result in successful revenue production. | | | | 6. Be aware of your competition. |
| Understand that finding willing investors takes work, | | | | Know exactly who your competition is and what |
| patience, persistence and personal commitment. | | | | they are doing at all times. Know why you are better |
| Always be concise. Every investor receives many | | | | positioned. Explain where your industry is going and |
| investment requests. It is critical that every, single | | | | how you will get there first. |
| thing you say and write be short, clear and complete. | | | | 7. Be passionate. |
| Your initial communications should be one or two | | | | Investors will look at you first, and then your |
| pages. Your elevator pitch which is your verbal | | | | management team. Be prepared to first sell yourself, |
| overview should be no more than sixty seconds and | | | | then your team and idea. Know and be ready to |
| leave the investor wanting more information. | | | | clearly illustrate your past successes. Your passion |
| 1. Be realistic. | | | | and knowledge is the foundation for all of your |
| Projections that are beyond your capabilities will result | | | | investor presentations. Demonstrate it at every |
| in the investor simply ignoring everything you say and | | | | opportunity. |
| write. Investors hear every day how companies will | | | | 8. Have skin in the game. |
| be worth a billion dollars. Make sure you have solid | | | | Investors are going to want to know that you |
| facts to back up your statements. | | | | personally believe in your company and that you |
| 2. Be confident. | | | | have invested in it yourself. Be prepared to show |
| You must be totally convinced of your own plans and | | | | how you have invested in your company. |
| path to success. Your confidence must shine through | | | | 9. Know which investors you should approach. |
| every communication with potential investors. | | | | There are investor types and classes for companies |
| 3. Be committed. | | | | at every stage. Understand the stage of your |
| You must be completely immersed in your business. | | | | company and what investor sources you should |
| It must be your full time job 24/7. | | | | approach. The typical investor course is: a. friends and |
| 4. Be knowledgeable and know specifics. | | | | family, b. angels, c. venture capital, private equity or |
| You must be ready to answer every question | | | | strategic capital funding sources, d. pipe funding (if |
| investors ask. Be ready to defend how much capital | | | | your investor exit involves going public). |
| you will need, how much your company is worth | | | | 10. Select only the best advisors. |
| today and use of funds -- to the dollar. All answers | | | | Make sure the advisors you hire are qualified, |
| must be complete and non-technical, yet short and | | | | experienced professionals. They should, give |
| concise. Write a business plan with an excellent | | | | references you can call, be invested in their own |
| executive summary. | | | | deals, know the language, have owned and operated |
| 5. Be ready to answer these three questions. | | | | their own entrepreneurial ventures, be properly |
| 1) What makes you different, what makes your | | | | licensed and be able to demonstrate all of the above |
| company a good investment? | | | | while also providing testimonials and/or referrals. |