Look out for investor has been common practice for the most of the present day startups. Here, some are seen being successful while rest waiting for further more options. There are some rules you must follow while negotiating your investor that would close the deal in a successful manner.
- It is highly imperative for the entrepreneur to estimate the exact needed funding and double it. This will avoid you from the additional funding rounds necessity. Also, this will avoid the possible interruptions too.
- It is important to keep your projections quite optimistic at the same time being realistic too. It is always a good practice here to support your projections with the scaffolding data and research. This will definitely validate your conclusions in the business plan.
- It is highly important for you to retain stake for you in controlling status. Keep your negotiation with your investor in a way the result would be for you as respectful partner and not as a subordinate. If it is a subordinate kind of partnership, then you will lose the control of the business.
- It is important for you to project well your passion for your business along with your confidence. You should never sound as desperate for the investor. Your weakness will turn into strength for your investor.
- It is always good to have your own standard terms for the investment and present this document to the investor’s meeting without fail. Agree for change in your terms while there is everyone’s best interest in it. It is highly important here for you to exhibit that the risk factor is not alone for the investor and make them understood that your passion has been mortgaged here.
There are many more things to be safeguarded while negotiating with the investor, but most will come into the scene while verbal conversation takes front seat in the meeting. It is always responsibility of the entrepreneur to negotiate everything keeping in mind the business best carrying over and it is not safe surrender yourself with the investor for the sake of funding.