Are you in the market for an investor for your small business or product? Are you preparing to sit down with them to discuss options? There are certain things that potential investors are going to want to know. If you want to be able to work with them, you’re going to have to be able to answer all of their questions. You’re probably thinking that you have no idea what they’re going to ask. Well, keep reading this brief article to get an idea of the questions potential investors will be asking you.
Is There a Need for Your Product/Business on the Market?
If your business idea isn’t solving an issue for someone, then no one is going to want it. To figure this out, try doing some market research. Ask people if they have a need for your product and if they would actually buy it. When you sit down with potential investors, make sure you show them your research. An investor is going to want to see proof that people are going to use something they’re going to put money into.
What’s the Size of the Market Your Targeting?
It’s important to be specific about the market you’re trying to target. Are they teenagers in the United States? Maybe they’re first time homeowners in Australia. Narrow down your target market to make sure that the target you’re after has room for your product. If you have trouble figuring this out, hiring a company such as Max Funding can assist you with all of your needs.
How Does Your Product Benefit Mankind?
In days of old, investors just wanted a high return on their money. These days, more investors want to know that they’re investing in something that will make a positive impact on the world.
How Is Your Company Going to Make Money?
Investors are going to want to know how you’re going to make money long-term. It’s great that everybody has your product, but what happens now? Will you come out with an extension product? This is something you need to give great consideration. Investors aren’t going to want to put money into a one-and-done product. They’re looking towards the future, and so should you.
How Will You Stop Other Companies from Making the Same Product as Yours?
If your product can be easily duplicated by other companies, it most likely will be. Investors want to know that you’re going to be able to protect their investment. If your product can be easily redone, an investor will most likely pass on the opportunity.
Now, sit down and answers these questions. Go into your meeting with confident answers and investors are sure to invest in your product!