Before meeting investors, read this!

You're starting a business, congratulations!

You've got an idea, you've got people to help bring that idea to life, you've got a fancy looking logo, a website and maybe even an adorable mascot for your brand all ready to go!

There's just one thing missing...money!

It can be tempting to go out looking for investors, experiencing your own version of Shark Tank or Dragon's Den and expecting the idea to resonate with the deep pockets you need to fill your own but step on the brakes for just a moment and read on because there are a few common pitfalls when getting into this position; hopefully this article can help you navigate and avoid said pitfalls without having to feel the pain of them for yourself.

So here is the non-definitive list of things to keep in mind before meeting with investors:

1. Know what you're looking for and why!

It's really easy to fall into the trap of "just needing money" but unless there's a good reason for it you'll be hard pressed to find a good investor willing to invest in you. Figure out what kind of investment you're looking for (a few terms to read up on: Love money, equity, debt, line of credit) but also make sure you've calculated and can articulate exactly what this investment will be spent on before you ask for it.

With this locked down you can go into the meeting with three things incredibly clear:

1. What you want
2. What you'd accept.
3. What you won't accept.

You'll always walk out a winner because you either got what you wanted, accepted what you were offered or walked away from the wrong deal. Whether it's knowing how much equity you're willing to part with or what repayment terms you're willing to accept, this ensures you don't make a snap decision on the spot.

2. Know your numbers!

If you've ever watched Shark Tank you'll know that the Sharks love asking about the numbers. "What revenue have you done, what are you projecting, what's your valuation, what's the market opportunity, how much have you already invested?" are all questions you're likely to get on the show and the real life scenario may very well play out in a similar fashion.

You're asking these people to part with their money and bet on your success so make sure they know what they're betting on.

3. Investors invest in people.

Speaking of what they're betting on, it's not your idea..

Surprise! It's you and your team!

If you're surprised, think of it this way:

An idea is only as good as it's execution and your team needs to be worth the trust of that investor. Make sure you "sell" the team just as much as the idea itself, showcasing what each team member brings to the table and speaking of team members...

4. The best investor is more than "just" money.

The best investor to partner up with is someone who doesn't just bring money to the table but connections, expertise and insight. If you can get someone on board who understands the market you're going into, can get you good deals on production (if applicable) or anything else of value for the company you might want to consider cutting that person a better deal on equity than someone who's "only" bringing money.

5. Problem first, solution second

When you get to the point of pitching, make sure you paint a clear picture of the problem you're looking to solve with your product to ensure investors see where in the market your product or service fits. This also gives you a great chance to showcase your understanding of your target market, the opportunity at hand and leads you directly into:

6. Commercial models and WIIFM (What's In It For Me)

Your commercial model needs to be crystal clear! How does this make money and what's in it for the investors. Any investor will want to know not only where their investment is going but where their return of investment is coming from. Showcase your understanding of the target market even further by giving examples of how it compares to potential competitors or comparable products already on the market.

As part of this, be ready to present your plans around customer acquisition and retention, marketing plans, branding and, if possible, the costs associated.

7. Be passionate about your product but don't get defensive

Investors are likely to at the very least try to poke holes in your plans, look for flaws in your products and find weaknesses in your team. Don't take this personally but stand your ground firmly nonetheless. If you're speaking to seasoned investors they've sat hundreds of pitch meetings and need to make decisions like this logically and quickly so show your passion and belief throughout the whole pitch but be open to feedback when given.

8. Consider a pre-emptive strike

If you read the previous paragraph and immediately thought of a flaw or weakness you're terrified will be brought up in the pitch, consider calling it out yourself early in the pitch.

This may seem counter-intuitive but if you're able to call it out and explain how you'll bridge that gap or why, in your opinion, it's not a flaw at all, you're showcasing a certain self-awareness and vulnerability that not everyone will allow investors to see from them.

9. Don't let "no" break your spirit

This is true of sales, jobseeking and building a company:

You'll hear "no" A LOT!

But that doesn't mean you should stop pursuing your idea. Most companies don't land the first investor they meet and it has to be a good fit on all angles. Keep searching for the right one for your idea, fine tune your pitch and get ready, because once you have that investment you've got a business to build!