As soon as I decided to leave the 9-to-5 grind for entrepreneurship, I started working toward starting a poultry business. Unfortunately, that business never saw the light of the day. Why? Lack of funds!
From my feasibility studies, I learned that needed about $12,000 to start the business I envisioned, at the scale I wanted. Unfortunately, I couldn’t raise that sum. And just like that, I had to bury that idea, because I also couldn’t get an investor to finance it.
Let’s face it: So many business ideas like mine have never seen the light of day due to a lack of funds. And investors are a major means of securing this kind of cash. But getting an investor to fund your idea is no mean feat.
And to a large extent, that first meeting will determine whether you get the funds or not. That’s why I offer the guidelines below, based on what I’ve learned, to help you get your first meeting right.
1. Focus on the right kind of investors.
Initially, you should make inquiries about potential investors who already have demonstrated an interest in your business category or industry.
One way to find such investors is to post a detailed personal and business profile on a platform like AngelList or LinkedIn. Since you are primarily looking to fund your venture, prioritize the former.
Aliston Johnson, CEO and co-founder of InstaEDU, used this particular strategy to land an investment, she told me. “I sent a personal note to new investors who chose to follow my personal profile or InstaEDU,” Johnson said. “This led to several meetings and one investment.”
What was she doing differently here? She reached out only to investors who were already interested in her line of business, thanks to the investor-filtering capabilities of a platform like AngelList.
2. Ensure your business plan is airtight.
Obviously, you need to start off your efforts armed with a company name, info and logo. Investors need to put a face to the business they are evaluating.
Follow this up with a short profile about your company’s background, the market need you’ve identified and…