Tuesday, April 7, 2015

'Shark Tank' Business Lessons

Start-ups or long-term business owners might find themselves in the situation of having to approach investors for capital for their businesses -- this is a great position to be in, but it does require planning and forethought on the part of the entrepreneur. 

If you're meeting with potential investors you will need to have your "investor pitch" prepared. What
goes into an investor pitch? Here are a few items:
  1. Stating your business premise and the clients you serve in a concise and clear manner. If you're stumbling for words, you haven't honed in on your ideal client yet and you need to do so. 
  2. What are the potential flaws in your business plan? A flaw could encompass not having thought through who will manufacture your widgets, or how you will market, or not having a plan in place for growth and hiring of staff. 
  3. How will you make money? Having passion for your business is ideal, but if it doesn't put money in the bank, you need to step back and consider how you will generate income. An investor won't want to invest if he isn't sure whether he will see a return. 
Are you ready for potential business growth? Do you have a written business plan? That will be a necessity when you meet with potential investors. 

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