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If there is one thing Shark Tank has made completely clear, it’s that entrepreneurs should know every aspect of the numbers of their business. Walking into that room, you better know your cumulative and year-to-date revenue numbers, cost of goods sold, and customer acquisition costs, or you’re toast.
With images like this as a guide, it’s no surprise that everyone thinks the most important things for meeting with a potential investor are projecting as much confidence as possible and nailing all the numbers in your presentation. But what’s really critical is some other work you do before you even open the door and step into the room.
Ask yourself these three questions:
1. Why do I do what I do?
Of course, the numbers of your business are important; you should definitely be able to rattle off your revenue numbers and your lifetime value of a customer, and you should most certainly be able to explain how you plan to wisely use the funds you’re raising. But confidence does not come from knowing your numbers. It comes from knowing your “why.”
Why do you do what you do? And why should investors