3 Tips For Approaching Investors
Get Used to No
Entrepreneurs are one of the few occupations (along with actors, salesmen, and musicians/artists) who are likely to hear many more no’s than yes’s on a daily basis. Receiving a no can often help your business more than a yes. The investors you will approach for funding have vetted thousands of startups, and they know what will work and what won’t. If you receive a no – find out why. This information can help improve your business while helping you to turn the next pitch into a yes.
Asking an investor to sign a non-disclosure agreement is a ticket to get the hell out of their office. If you are scared of your business idea being stolen, then maybe you aren’t the right person to bring it to market. Investors see dozens of business ideas a day, many of those will be in the same industry, and possibly the same exact idea as yours. Don’t ask an investor to sign a non-disclosure agreement. Remember that you are selling yourself and your team, not simply an idea.
Time Kills Deals
Be ready to act fast if you get an offer sheet from an investor or investment firm. If pitching to investors, have your business incorporated, hire a lawyer, and be clear about what exactly you want and what you are willing to give up for it. Minds change quickly as new opportunities come into the laps of an investor every single day. Be ready to act fast.