Article Written By: Roy Murad
I have spent my career either starting new companies, investing in start-ups or connecting investors with entrepreneurs. I know within minutes of meeting someone whether their business will have a chance of attracting the attention of an investor and if they have the attitude to succeed.
The most common mistakes entrepreneurs make start even before an initial meeting - they start at the planning stage. I can say with certainty that I’ve heard more bad pitches than good and offer the following advice to any entrepreneur looking to gain the attention of an investor.
#1: Plan, plan, plan and practice
Like a good carpenter who measures twice and cuts once, a good entrepreneur should always create a solid business plan based on in-depth research and a realistic expectation of the marketplace. Before you even consider sitting down with an investor or potential partner of any kind, do your homework and have every possible question answered. Preparation will yield confidence and confidence will yield consideration. Once you are prepared, practice. It may seem strange, but ask family or friends to listen and take on the part of a potential investor. Have them look for holes in your presentation and ask you the tough questions. The more holes they find, the better your presentation, so after they’ve been tough, thank them!
#2: Despite what you think, you’re product/service won’t sell itself
You are the biggest fan of your business and that is exactly how it should be. However, remember that not everyone will fall in love with your product / service at first glance but a solid marketing plan will bring attention to your product. Combine an aggressive marketing plan with a passion that only you can bring and people will take notice. Sorry to say that while the passion is free, the marketing initiatives are not. You really do have to spend money to make money.
#3: Product is important, but people matter more
It is easy to get wrapped up in your business, but never forget those who have, or continue to, support you. Your product or service is important, but your support system is even more important. Even when looking for potential investors or partners it is critical to look for those with similar core values as you hold dear. Successful long term relationships are built on common values and a desire to succeed, NOT money.
#4: Think you can do it all yourself? Not if you want to succeed…
Surround yourself with those who will support you at every stage. Your family, friends, mentors… as you go through the ups and downs of owning your own business you will need a support system. Success is not solitary. Besides, you’ll want somebody to invite to your celebration when you’ve achieved success.
#5: Network
It truly isn’t what you know, but who you know. Network, network and network to build that support system discussed above. You never know where you’ll find a mentor, an investor or a collaborator. While the thought of putting yourself out there makes you uneasy, only you can incite interest and passion for your business.
#6: Be adaptable. Be open.
Don’t be too locked into your vision. Remember that often those you are seeking as partners or investors have been in the industry for a long time and can provide advice to help lift barriers down the road. Listen to them; consider their suggestions; and make the decision that you feel best. It might be a small tweak or a large change, but if it strengthens your business, don’t be too stubborn to accept it. By listening, you are creating trust and that is a key value for a business partner.
#7: Know more about me than I know about you.
You have your plan and your argument ready because you have practiced over and over (and over) again. You’re ready to walk into a potential investor’s office, but what do you know about the person or people with whom you are meeting? Take time to research your meeting partners and go in with intelligent questions that relate to their potential involvement in your business. Show interest in them and get to know their working style and culture… that should be as big a factor as their investment.
#8: Invest in yourself
If you don’t believe in yourself and your business why should you expect others to believe enough to invest. You need to ask yourself, if I’m a risk worth taking… and make no mistake about it, you are asking investors to take a risk. Ask yourself, “How much of my own capital am I willing to risk?” If the answer is minimal, you can be certain that an investor will see that as a red flag. People don’t invest in companies… they invest in people.
#9: Learn from your rejections
Rejection happens to the best of us. It doesn’t mean that you are a failure, it means you haven’t found the right fit. However, don’t automatically assume that “those in the meeting just didn’t get it.” Take the feedback provided and improve your business, your pitch or your approach. A rejection might just be the best thing that ever happens to your business.
About Roy Murad
Roy Murad is a father, husband, business consultant, investor, advocate for new business ventures, and consummate entrepreneur. Over the course of 35 years building businesses, guiding companies and identifying strong investment opportunities, while nurturing a thriving family, Roy Murad has amassed a wealth of experience; experience, that may be of value to others who are looking to shape a balanced and successful life experience. For more about Roy Murad and his lessons on entrepreneurial success, Please visit his website at roymurad.ca
Roy Murad (Image Courtesy: https://roymurad.ca/)