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VC Meeting Checklist

Don't waste potential investors' time--and ruin your chances of funding--by not being prepared. Before meeting with potential investors, be sure you can answer these questions.

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Just as you wouldn't start a business without planning, you shouldn't approach a venture capitalist without preparation. Before investing in your company, venture capitalists will ask some tough questions about your management experience, your plans for the company...and your plans for their money. Before meeting with potential investors, be sure you can answer these questions:

Why did you start your company?
Where do you see your company going?
What problems do you see your company encountering?
What do you see as the company's main markets?
How do you plan to capitalize on those markets?
Who is your competition?
How do you plan to handle your competition?
What have you invested in the company?
How did you arrive at your financial projections?
When do you expect to meet the projections?
What type of financial controls do you have to prevent disorganization or embezzling, to handle accounts receivable and payable, to ensure adequate inventory (dual signature, check control, purchase orders, etc.)?
Who does your accounting?
What is your company's short- and long-term business plan?
Where do you see the company going in five years? In 10 years?
What are your criteria for site selection?
Who is your customer?
How many employees do you have? What do they do?
What additional personnel do you feel will need to be hired and when?
What is your overhead?
Who are your suppliers?
Do you have long-term contracts with suppliers?
How does the company plan to use the funds from our firm?
What is the seasonability of the company's business?
What type of growth have you seen in your industry?

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