Here are 5 important tips to consider when approaching investors (or thinking about it).
1. Cash is king. Be sure to build up and prove you are able to manage your cash flow. Cash flow management can easily kill your companies – be careful!
2. The company must have sales. Angel Investors and Venture Capitalists will invest after you have your first customer. If you’ve ever watched Dragons Den you need to have a history sales before looking for investors.
3. Keep investors top of mind. Consider your family, friends and co-founders – are you comfortable losing their money? Keeping them top of mind will, hopefully, help you make sound business decisions.
4. Decide if control of your company is absolutely necessary. Company control is relative and should align with your personal and professional values.
5. Practice telling your story. It will be very important for you to set yourself apart from the competition and address your ‘so what’ factor.