17 12 2009

I remember reading a quote from Wil Schroter “Pitch everyone, all of the time”.  If that isn’t the answer to the million dollar question.  When creating these ideas remember the Art of building a business.  Create something that will make an already good idea better, right a wrong, or will add to the quality of life.

Right now investors are looking for the next best thing, and you never know who may be in the room.   I have met a many a investor via Skype and Facebook.  One thing you will find is that when they give you the downside of your “astronomically mind boggling” business idea they are really trying to help you along.  If you have a box or cute little bag write them on a small card, jot down the strategy or how it will make the investors money then file it away until you are ready to use it.

Here are 10 of the questions most asked:

1.  So tell us about your business?

This is the opening to the inevitable “elevator pitch”.  Please don’t spit on the VC while trying to get as much out of your mouth as you possibly can.  A business plan overview is good enough. Grab their interest.

2.  What is going to stop the “Big Boys” from copying you or smashing you like a bug?

Remember they have more money, and a broader reach.  Never say “Nothing” or  “Nobody is doing what we do”.  There is always competition.  Say something like:

  • We can move more quickly
  • The “Big Boys” have to much to manage and can’t take the time to innovate the needed changes.
  • Or the famous, they would be better off acquiring us than copying us

3.  Why are you raising the money you want to raise?

This is very important.  It is very important that you do your homework here.  Never give conservative numbers.  Be ready to explain them and how you arrived at them.

4.  What are your benchmarks for the money and how far will this get you?

“6 months past launch when we expect to be cash flow positive”.  You gauge this by looking at it this way, how long would this money last you if you had zero revenue.

5.  Who are your customers?

Try to get testimonials. Remember Google Ad Planner.

6. What is your marketing strategy?

This is critical to your success, so plan for it now.

7. What are you coding in?

Hello, this is your company please know this.

8.  Are you handling the technological infrastructure for scaling?

Who is your support.  When consumers rush in will your servers hold up.

9.  Who are the members on your team?

Have some resumes.  And please have a decent web presence.

10.  What is the ROI on this venture?

Give an approximate date or period of time for ROI, figure in unforeseen occurrences.  (Over deliver and under promise.)




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