If you’re a business owner who is looking for investment, you’ll need to be prepared for the questions an investor will ask. Of course, each investor is different and may have their own specific questions, but there are some general questions that you can expect. By being prepared for these questions, you can put your best foot forward and increase your chances of securing the investment you need. So what are some of the most common investor questions? Peter DeCaprio answers.
Peter DeCaprio’s List of Questions That Investors Ask
- What problem are you solving?
- Who is your target market?
- How do you plan on making money?
- What is your competitive landscape?
- What is your business model?
- How much money do you need to get started?
- How will you use the funding?
- How soon until you’re profitable?
- Investors want to know what problem you are solving because they want to know that there is a potential market for your product or service. They want to know that people will actually use what you’re offering and that it will solve a real problem for them.
- According to Peter DeCaprio, your target market is important to investors because they want to know who your customer base is and whether or not there is a great enough demand for your product or service. They also want to know if you have a solid plan for reaching your target market.
- How you plan on making money is important to investors because they want to see that you have a sustainable business model that will generate revenue over time. They also want to know how much money you plan on making and when you expect to be profitable.
- Your competitive landscape is important to investors because they want to see that you understand the market you’re entering and who your main competitors are. They also want to know what your competitive advantage is and why you believe that you can succeed in this market.
- Your business model is important to investors because they want to see how you plan on generating revenue and whether or not your business is sustainable. They also want to know if you have a solid plan for reaching your target market and if you have a clear path to profitability.
- How much money you need to get started is important to investors because they want to see that you have a well-thought-out plan for how you will use the funding. They also want to know if you have a realistic expectation of how much money you will need to get your business off the ground.
- What you plan on using the funding for is important to investors because they want to see that you have a clear and concise plan for how you will spend the money. They also want to know if you have considered all of the costs associated with starting and running your business.
- How soon until you’re profitable is important to investors because they want to see that you have a realistic timeline for when you expect to generate revenue and become profitable. According to Peter DeCaprio, they also want to know if there are any major milestones that you expect to hit before becoming profitable.
Peter DeCaprio’s Concluding Thoughts
When meeting with an investor, it is important to be prepared for a number of questions, says Peter DeCaprio. They will want to know about your business model, your target market, and how you plan on making money. An investor will also ask about your team, what resources you need, and what the exit strategy is. If you can answer these questions confidently, you are likely to pique their interest and receive funding for your business.