The CBC’s new venture capital reality-show Dragon’s Den presents us with the ultimate meeting with an investor. Lessons abound for any start-up business or professional practice seeking to generate financing.
Contestants are forewarned to be well prepared to meet with their ‘dragon’ a.k.a. their investor. Sean Wise, the show’s online host, provides them with a running start to do just that with his list of questions that investors always ask.
Here are highlights from 14 First-Date Questions Investors Will Always Ask with a focus on the questions most relevant to the small to mid size start-up business or professional practice:
What is it that you do?
Why is such needed?
Who else agrees with you?…
How much capital do you need?
What are you going to do with my cash?…
How much is it worth (i.e. what’s your valuation)?…
Why you?…
What are your goals?…
How did you come up with this?…
What’s your Skin in the game?…
This is a helpful checklist for any start-up business or professional practice seeking to generate financing. You should not only be prepared to discuss answers to these questions but should also ensure that they are thoroughly exhausted in your business plan.