One of the many worries of entrepreneurs is enticing investors to continue supporting their venture. In order to help business owners get some tough investors on their side, here’s a short rundown of the tips as shared by Janine Popick, CEO of VerticalResponse, in her article on Small Business Computing.
She started with the obvious: that an effective investor pitch takes time, effort, and practice. Business owners must be completely prepared for the presentation. Knowing their business is one thing, but describing it in a way that interests others is another challenge. It is therefore imperative for them to review their venture from start to finish. The task is to find notable things to highlight in the presentation that will give the business an edge over others in the eyes of the potential investors.
Meanwhile, entrepreneurs must also remember that investors are foremost interested in knowing how much the business is worth. An accurate and credible presentation of sales data and full disclosure of incurred debts could go the way of either dissuading investors or getting them to help steer the company out of tight financial situations. Obviously, investors are expecting a fair return on their investment, but some of them are looking to buy into interesting business ventures that could be hauled out of reversible mistakes in management.
Finally, Popick added that one must also be willing to forgo asking for back pay. Debts accumulated prior to meeting investors should not be taken out of an incoming venture, in the interest of saving the business first.
Mark Leslie’s experience in Veritas Software provides an example of how one entrepreneur was able to restart a company and turn it into a four million-dollar investment. Find more information on Mr. Leslie by visiting the Stanford Graduate School of Business page.
*Disclaimer: These blogs are not owned by Mark Leslie