You’re having a great investor meeting. Everything is going your way. Then, the investor asks you a question. You start telling a story instead of directly answering the investor’s question. And there goes your investment.
There’s an art to successfully answering questions. I’ll share with you my five step process for successfully answering investor questions.
The first step in the process is:
1. Prepare, prepare, prepare.
Successfully answering investor questions is all about thinking on your feet. The secret to thinking on your feet is preparation.
I think you can predict a lot of the questions you’ll get from investors. I used a couple of different techniques to figure out what investors might ask me.
A. Rehearse and record your pitch.
I love recording my pitch. As painful as it might be to see and hear yourself, you’ll see where your pitch is strong and where it’s weak.
You’ll also see where investors are likely to ask you questions. I like using the “Why” technique to start developing a list of potential questions I might get asked.
