- 2.2.3 -

What investors want to know

One thing is for sure – when you go looking for start-up capital, you can bet your ear that investors will ask you these questions:

  1. Is your product unique?
  2. How big is the competition? (This means both direct competitors and those who offer alternatives to your products and services.)
  3. Is your business scalable?
  4. Does your business somehow support membership and recurring revenue?
  5. Are you profitable? Does your business model give you low CAC (Cost of Acquired Customer) and COGS (Cost Of Goods Sold), as well as high LTV (Life Time Value)? You’ll read more about economics later on in this book.

These aren’t the only questions you’ll be asked, but you can be sure to expect them from any prospective investor. Investors like uniqueness. It means lower risk that someone else will copy you. It means customers will come to you, since they cannot get comparable products and services elsewhere.

In the next section, you’ll discover some tools for making your business unique.

Share this