5 principles for communicating with investors

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There are a few simple principles that you must stick to whenever you're interacting with investors. Some of these are commonsensical, but I see founders forget them all too often.

This is in no way a comprehensive list, but here are five principles that will help you lead your communications with investors toward the outcome that you want:

1. The conversation is about money: Ultimately, an investor will invest in you because they are convinced they have a good chance to make a big profit on their investment. Investors might have other considerations, but in almost all cases, we can assume that making money on their investment is their top priority. So be sure to be clear on how that will happen and why. Be practical and savvy.
2. Ask questions: While you're presenting your company and vision, don’t forget to ask questions and gather information about the investor. You should be genuinely interested in their goals and requirements. You also need to assess whether they are actually going to invest and whether you want to accept them as investors.
3. Be an expert: You're specialized in your niche, and therefore you are an expert with valuable information. Make sure you know your numbers, presenting information clearly and confidently. Investors will respect you and trust you the more for it.
4. You're the Leader: No matter how keen you are to secure funding, never let investors overshadow or undermine you. It's your startup; they are joining you, not the other way around.
5. One Step at a Time: Aim for the immediate next step. If it's your first meeting, your objective might be to secure another one. If you’ve just connected on LinkedIn, your goal is to schedule a call.