First meeting with an Investor

A lot of entrepreneurs make mistakes while building relationships with investor and pitching ideas to them. It's a blunder to ask for cash in a first casual meeting with an investor. There is no doubt that getting investment and winning the heart of investors is a pain in the $ #. This blog post will give you insights on what and what not to ask an investor.

1. do not start with cash

Investment meeting

Asking cash at the beginning can damage a relationship which needs careful cultivation. You will often hear suggestions like "refine your ideas", or, "what the value proposition is", or, "make sure you target a niche". This feedback comes off with almost every investor at the end rarely gets an investment. Investors are interested in your business ideas and how passionate you are on what you do not just about how much you want.

Initiate the conversation with how your idea got introduced and what made you think it's worth trying. You can even come up with some good looking presentation to attract your investor. Do not hesitate to give a powerpoint presentation if required.

Moreover, make sure you present your  MVP (Minimum Viable Product) to your investor. It is the minimum things that an app must have to get it to work. Developing an application is like constructing a house. You can not start a house with the roof, it is important to build it little by little from foundations to roof. Additonally, MVP is also considered as a prototype of the product before an actual launch.

2 .Ask their advice

Asking advice

When you meet with an investor, you also should be asking for their advice to your ideas, but boilerplate advice is the kind of thing you can find on the internet and does not help you cultivate relationships with a specific investor.

You must be ready to get criticized. Make sure to take them all without getting aggravated and keep in mind that people who are not interested today might be tomorrow. Just stay calm! Also, make sure you work with your criticism and start working with it and get ready for your next meeting.

3. Know your investor

Do not forget to investigate about the investor. Stalk the investor, learn what kind of products or services they have invested in and where you stand among them. You should analyze their facebook profile, twitter feed, blog or website and read articles about them if they have been featured. Design your questions which will ignite their interest.

You should also post your detailed business idea on platforms such as Angellist or Linkedin . Go to meetups in your area. Even if you do not find an Investor, you might get some valuable suggestions from people.

4 . S a f e   I n v e s t m e n t

Pig under umbrella picture

No one wants to risk losing their hard earned money. Explain how their investment will be safe and will get the best ROI (Return On Investment). Throw out some numbers, for an instance tell them that you intend to reach this much number of people within the next quarter. Also, make sure to tell them about your competitors if any. If your idea is unique and it does not have any competitors. Tell them why your idea will work and what is the demand and prospect for it.

5 . creative but stupid ideas

Bulb glowing idea picture

So you think your idea which can potentially change the world kind of sounds unrealistic and funny? Do not worry about it. I'm sure the investors must have laughed at Elon Musk when he proposed that a rocket, size of 20 story building could be dropped from space and land safely on earth. He also have launched another awesome idea which seemed unrealistic 10 years ago to the freaking space! Yes, you heard it right, I am talking about the famous Tesla Roadster which is claimed to be one of the fastest cars out there and the most amazing part is it's an electric car.

Sounds good right? But getting your first investment requires a lot of hard work. You have to get an MVP of your product, mockups to present it to your Investors. Wait what! you do not have an MVP? What are you waiting for? Contact us !

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