25 Rules of the Game "How to convince an investor"


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25 rules of the Game "How to convince an investor"

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25 Rules of the Game "How to convince an investor"

  1. 1. 25 Rules of the Game“How to convince an Investor”
  2. 2. 2www.lemonfruits.comHow to convince an InvestorPreparing your play#1 Put yourself in their shoes
  3. 3. 3www.lemonfruits.comSit down.Close your eyes and think.I am an investor and I’m going to meeting someone whowill help me to make money and have fun.What do I want to hear?What tone of voice?How do I feel most comfortable?What are the aspects that interest meabout the business?
  4. 4. 4www.lemonfruits.comHow to convince an InvestorPreparing your play#2 Be ready!
  5. 5. 5www.lemonfruits.comBefore the meeting,collects all possible information aboutwho is,who represents,what are his/her professional and personal interests,his/her experience andhis/her area of competence.
  6. 6. 6www.lemonfruits.comHow to convince an InvestorPreparing your play#3 Think about yourself
  7. 7. 7www.lemonfruits.comYou know your business model, your strategy, your product,your customer, your target industry, your competitive advantage.If you don’t know all this or you have not prepared a summaryand a detailed presentation, you don’t need to go to meet him/her.Also be ready to listen actively, communicate effectively,be proactive, and be organized.
  8. 8. 8www.lemonfruits.comHow to convince an InvestorPreparing your play#4 Create a communication style
  9. 9. 9www.lemonfruits.comTry to stand out in your conversation.Differentiate from other entrepreneurs thatsometimes are “annoying” to investors.Learn to observe the behaviors thatdo not succeed to build an image that it would be.You should transmit to the investoryou are offering him/her a unique project.
  10. 10. 10www.lemonfruits.comHow to convince an InvestorPreparing your play#5 Know your investor
  11. 11. 11www.lemonfruits.comPrepare to meet the expectations of potential investors,constant communication allows you to knowwhat information is really important to them,what are the decision criteria to invest in a project,as this will help you to improve.Take advantage of all that information:write it down and use it to communicate with them.
  12. 12. 12www.lemonfruits.comHow to convince an InvestorPreparing your play#6 Know their invested projects
  13. 13. 13www.lemonfruits.comIn the same way that we care to know our business,we need to know several topics:Where to invest?What is the profile of an entrepreneur who chooses?Why invest in them?What are their projects?What differ from yours?How much they invest?
  14. 14. 14www.lemonfruits.comHow to convince an InvestorPreparing your play#7 Organize your meeting tools
  15. 15. 15www.lemonfruits.comPrepare everything you’ll need to keep your interview effectively,check your PC, iPAD, presentation, demo are working correctly.Prepare your business card, paper and penclose to you without disturbing you.Get rid of anything you do not need to have a meetingfeeling yourself comfortable
  16. 16. 16www.lemonfruits.comHow to convince an InvestorHow to convince#8 Sell with your language
  17. 17. 17www.lemonfruits.comThe “how” says more than “what”.Our body language speaks louder than words,if this is a telephone contact, our tone of voicealso says more than words.Know your voice and learn to use it toimprove your communication.A proper modulation helps betterconvey the message, smile and breath more slowly.Record yourself and listen to your voice.Practice in front of the mirror.
  18. 18. 18www.lemonfruits.comHow to convince an InvestorHow to convince#9 Speak with clarity and quality
  19. 19. 19www.lemonfruits.comRemember to make a proper presentation toinitiate contact with the investor,facilitates your name,and the company you represent,the purpose of your meeting.Learn to expect that investors respond (if necessary),to convey a message properly structured totransmit messages to other partners if any.
  20. 20. 20www.lemonfruits.comHow to convince an InvestorHow to convince#10 Customize communication
  21. 21. 21www.lemonfruits.comThe investor will access our project whenreaches a point of personal trust with you.The trust is built through the image perceived.Customize your message,treat him/her as an individual andnot as “one of many investors.”Build his/her confidence
  22. 22. 22www.lemonfruits.comHow to convince an InvestorHow to convince#11 Use appropriate vocabulary
  23. 23. 23www.lemonfruits.comThe investor knows perfectly what information needs.Avoid using technicalities for your argumentation.Focus on the”what” and not on the “how”unless he/she asks for it.
  24. 24. 24www.lemonfruits.comHow to convince an InvestorHow to convince#12 Listen actively
  25. 25. 25www.lemonfruits.comActive listening is essential to good communication.Evaluates beyond the words of the investor paysclose attention to your tone of voice,read “between the lines” to get the message thatyou are transmitting, remember that his/her profession is notcommunicating with you,yours is to understand him/her.Active listening means leaving spacefor the investor to be expressed.
  26. 26. 26www.lemonfruits.comHow to convince an InvestorHow to convince#13 Use the structure of the conversation
  27. 27. 27www.lemonfruits.comEvery conversation has following structure:Introduction, Inquiry, Argumentation,Objections resolution and Closing.Rate what you may reinforce.
  28. 28. 28www.lemonfruits.comHow to convince an InvestorStart to play#14 Game starts
  29. 29. 29www.lemonfruits.comWe all remember the phrase “We will never have a second chance tomake a second first impression.”Work on making a good first impression,apply clarity and quality.Use a positive toneDo not forget that the investor wants to feel safe.At the beginning of the conversationyou may have an open conversation with him/her… or will be closed.
  30. 30. 30www.lemonfruits.comHow to convince an InvestorPlaying#15 Pay attention to investor’s questions
  31. 31. 31www.lemonfruits.comEach and every question must be answered in the order he/she are making it.If you do not understand the meaning of a question ask for clarification.The time of your investor is very valuable and you can’t afford not answeringwhat he/she requested.Be brief, clear and concise in your answers.As far as possible provide facts and figures, avoid adverbs of quantity like“much”, “little”, “quite” and replace them with real concrete figures like“42%”, “3 months “,” $750,000 “.You should anticipate what questions he/she can make.Put yourself in his/her shoes“What I should ask if would invest in my business..”
  32. 32. 32www.lemonfruits.comHow to convince an InvestorPlaying#16 Talk about benefits, not about features
  33. 33. 33www.lemonfruits.comThe attention and interest in your project will be generatedby its benefits,not by a long list of features that are not linked to benefits.Translate features into benefits:time to market,scalability of business,return on investment,..
  34. 34. 34www.lemonfruits.comHow to convince an InvestorPlaying#17 Use the objections
  35. 35. 35www.lemonfruits.comWhen we present our project and its benefits,the most common issue is that the investor is making comments totake a decision, which is what we called “objections”.The interested investor raises objections, makes questions.The uninterested investor does not interact, shows indifference.It is very important to perceive the objectionsas something positive: no objection means no interest.Stay calm and, above all, listen.
  36. 36. 36www.lemonfruits.comHow to convince an InvestorPlaying#18 Manage the objections
  37. 37. 37www.lemonfruits.comSometimes there are real objections, sometimes are excusesthat are making during the decision process and you mustdetermine which are real, which are excuses.The investor raises the objection as something concrete but most oftentoo diffuse, for example: “I’m not convinced”.How do we treat this objection if we don’t know what the investor means?You need to clarify it, delimit it, knowing what the real reason is.Even during the process you may get more objections,and then you must follow the same steps,to reach what is “it” and not “something else”.You must be prepared to answer typical objectionsbefore the meeting for divestment, timing, B plans, etc
  38. 38. 38www.lemonfruits.comHow to convince an InvestorPlaying#19 Get partial agreements
  39. 39. 39www.lemonfruits.comThroughout the conversation you’re going to agreewith the investor in various topics.So, try to get partial agreements with the investorthat allows you to reach a preliminary agreement.In the course of the conversation make “control questions”that allow you to determine if there is any partial agreement.You must get several “yes” before to reacha definitive “yes” or at least a next stepfor discussing further details about the deal.
  40. 40. 40www.lemonfruits.comHow to convince an InvestorPlaying#20 Take the initiative
  41. 41. 41www.lemonfruits.comDo not let the conversation lead by the investor,the investor evaluates not only your projectbut also evaluates your ability to carry it out,your initiative, conviction and involvementis crucial for an investor to bet on your project.
  42. 42. 42www.lemonfruits.comHow to convince an InvestorPlaying#21 Convey your thanks to the investor
  43. 43. 43www.lemonfruits.comNo matter what is the outcome,please appreciates the time you have spent,the advice obtained and lessons learned.
  44. 44. 44www.lemonfruits.comHow to convince an InvestorPlaying#22 Rate the conversation
  45. 45. 45www.lemonfruits.comIf you have achieved your goal congratulate yourself!And if you haven’t it, do congratulate yourself too!You must appreciate the obtained information,the establishing of a new contact,and the conclusions of the assessment of the meeting.Sure all of this will be useful for your next investor’s meeting.
  46. 46. 46www.lemonfruits.comHow to convince an InvestorPlaying#23 Value your time
  47. 47. 47www.lemonfruits.comIf you have achieved your goal congratulate yourself!And if you haven’t it, do congratulate yourself too!You must appreciate the obtained information,the establishing of a new contact,and the conclusions of the assessment of the meeting.Sure all of this will be useful for your next investor’s meeting.
  48. 48. 48www.lemonfruits.comHow to convince an InvestorThe game continues#24 Keep tracking your steps
  49. 49. 49www.lemonfruits.comInvestors follow those who already have followed them.You know when you should call back him/her?Do it just for asking him/her about what their opinion,about the meeting,about your project andkeep going their confidence in you.
  50. 50. 50www.lemonfruits.comHow to convince an InvestorThe games continues#25 Follow the steps of the investor
  51. 51. 51www.lemonfruits.comGet knowledge about each and every step of the investorto get the acceptance of your proposal:What information requires about your companyor about your project?What will they do with that information?What are the next steps?When a project validation?Are they taking next steps for other projects?.
  52. 52. 52www.lemonfruits.comIn case of shareholder community setup, run quarterly webcastwith our help to inform them about your business evolution andkeep them motivated to get fully engaged….and enjoy your road to get Fruits!
  53. 53. Connecting startups with investorsthrough your ecosystem