If your company is either a startup or an entrepreneurial enterprise and you are seeking financing from individual accredited investors, remember this: Prospective investors (regardless of their level of sophistication) are interested in several things, and each one must be addressed in your presentation. The idea is not to simply boast with great confidence about your unique business model, intellectual property or disruptive technology – you must also devote adequate time in your presentation to discuss how a viable and interested investor:
*can make a substantial return on capital invested;
*recovers his or her initial capital contribution (through cash flows, exit strategies, etc.);
*is protected against any loss of principal.
You’ll do well to conduct yourself (and to tailor your pitch) as if you were an investment advisor and advocate for the prospective investor instead of as a mere promoter. Don’t just sell. Educate and reassure. You can appear quite confident – so long as you temper that confidence with some caution and in both your attitude and presentation. Remember: Be enthusiastic, but come across as conservative. Part of your responsibility is to comfort the prospective investor. http://GlobalEdgeInternational.com
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***Follow GEI's Company Page On LinkedIn! Financing Your Entrepreneurial Startup: Educate And Comfort by Douglas E. Castle