It is very important to spend a few hours during each interview process to ensure that the angel investor you choose is the best fit for your company and your vision for it.
As you prepare your questions for the investors, do not forget to consider some of the questions the investors are going to ask you.
We take a look at some of these;
• What is your business about? : This is the first question they're going to ask. Even after reading your executive summary, they want to know if you can articulate your business goals and vision within a few short words. This is to gauge how well you know what you want to do. Prepare for this question and even if this question is not asked, you'll at least have a one or two liner that sums up your business for future marketing collaterals.
• Why are you raising this amount of money? : This is a cleverly veiled question to gauge your competence. Present facts and projected figures with confidence and clarity.
• How does your management team look? : The management team is crucial information for all investors. Having a quick background prepared with key areas and persons highlighted will help sell the seriousness of your venture. Investors want to know why you hired them and how they can contribute to the overall business.
• What is your marketing strategy? : Investors are keen to know the strategies you have in plan to market your business or product. Plan and present a timeline of events detailing how you intend to leverage on the funding and bring awareness to your market.
• How long before the business is cash positive?: Have a detailed financial report on when you expect to be cash positive. Investors want to see returns so give them a clear dateline of when they can anticipate a turn around.
• Do you have any customers or spoken to any? : If you've been researching the market and talking to potential customers who have shown interest in your product, share the information with the investors. They will be looking for viability and if there is a clear demand for your products or services.
Most investors will ask these questions or some variation. Look over your executive summary and business plan and identify key points.
If you know your business very well, learn to articulate it.