It’s no secret new entrepreneurs need cash…and lots of it.
Consider approaching an investor for a portion of your start up funds. You may find an investor through your local Chamber of Commerce, through a professional broker or through your own personal network. Before you sit down to pitch, understand these are the things an investor wants to see:
• A Business Plan. Don’t even think about meeting with an investor until your business plan is solid. Keep it short and sweet with no more than 10 pages. Be sure to include detailed financial projections for the next two years.
• Your personal investment. You can’t expect someone else to invest in your business unless you do. Your investment could be either money or assets, such as equipment and office space.
• Share of the company. Be prepared to offer up a slice of your business pie. Decide how much of a share you’re willing to give in exchange for the money. Some investors will also want an active role in your company or to sit on your Board as an adviser.
Clear exit plan. Look ahead five years to determine the big “pay off” scenario for an investor. Will you sell your business? Franchise? Go public? Investors want to know how they’re going to get ten times their original amount out of your business