Preparation is the key to success in life and business. When meeting an investor it is important to know a few things.
Firstly, if you are having a meeting it means you are halfway through the door. Do you know how many people want to see them? The amount of emails they get ? It’s a lot. So if you ever get a call from a potential investor who needs more information on your business it means they already see your business as having a ton of potential, enough to be worth their time. But that’s just half the work. You need to come prepared. Now there is no one script for this, so I am going to personalize this. It is important to know that investors and what they want from you vary based on their background and their current stage in life. Here are few of the things I am interested in.
1- Your Numbers.
It can be irksome talking to a person who doesn’t know their numbers. It is possibly the biggest taboo when it comes to investing. How much revenue (total sum) are you generating and how much of that is profit. Cost and expenses inclusive of salaries and how much you pay yourself is pretty much the whole gist of the business that let’s me know if it can scale. Have you seen Billions? The TV series ? Large scale stock buying decisions are made mostly off the numbers of the business because people lie but numbers DON’T.
2- Sweat Equity.
How much of your effort is in this business? I am hardly ever impressed with businesses that are a part time affair for its owners. To invest in that kind of business worries me. People who see business as something to do on the side completely miss the point. Business is HARD. The chances of failure is 95-99% in the first year and that is for people who pay full attention. So I can hardly take someone seriously who doesn’t understand that. I can empathize though in that I understand that for most, running a business in Nigeria is basically a safety net in case they lose a job or to supplement their salary. But quite frankly that is not enough. Being in business is like being in a serious relationship, you must be willing to put in the time, effort, creativity and resources to commit to it fully in a way most Nigerian relationships do not. 😂😁🤣🤣🤣