The 10 most common questions an investor will ask you

[jrineakter]

Are you looking for funding? Then you are probably aware that any potential investor will put you through a real grilling. And of course, it is no wonder. These people are also risking their money and part of their success.

Your project has surely caught their attention at first sight (otherwise they would not bother to talk to you), but they need to know all the details of the business, you and your team. Here are some of the most common questions an investor will ask you.


The most important thing in any business is the clients and that is why this is one of the first questions that you will be asked. The investor's objective is to find out if you know how the market works, if you know who your clients are and if the niche you are targeting is large and accessible enough.

2. What product or service do you offer and what need does it cover?
Investors are naturally skeptical. You have a business idea in mind and you are absolutely sure that it will work, but investors don't take anything for granted. They want to hear you explain what your product or service is and what need it meets.

It's even better if you have proof iran number data that the market segment you're targeting will actually be interested in your product. It can be extremely helpful to conduct a survey with potential customers to prove that they would actually be willing to buy from you.

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3. How are you going to get clients?
No matter how good or innovative your idea is, or how much it satisfies a need, you will need to go out and find your customers. Customer acquisition is the basis of any business, because if no one knows you, it is as if you do not exist.

It is not enough to present an investment budget, but you will need to convince the investor that the customer acquisition strategy is the best and will have a huge return in a short period of time.

If you have already started the business and have data on fundraising, you will be able to demonstrate the validity of your idea. Of course, you will also have to prove that it is a scalable project, because Business Angels do not invest in businesses that are not scalable.

4. Who are your competitors and what is your added value?
Demonstrate that you know the market in detail. You will always have direct and indirect competitors that you will have to deal with. And if your project is successful, new competitors will surely emerge that will try to improve your offer.

You must have a structured plan detailing who your competition is and how you are going to beat them, using your added value. Never underestimate a competitor or say that you have no competition, since it is possible that if there is no competition, it is because the market does not exist.

5. Why are you the most suitable person to carry out the project?
No matter how great your business idea is, if the team that is going to pilot it is not good, it is easy for it to fail. That is why it is essential to present a team with experience and knowledge of both their tasks and the market you are going to enter.

In addition, it is also important to show the motivation and commitment to the project of all team members.

Don't forget to mention all the people who own shares in the company and whether you have or have had any experienced mentors.