How to relate to an investor
Posted: Wed Apr 23, 2025 5:19 am
Now, do you think the accountant has the same sales skills as you?
I don't think so; and so the negotiation stalls and the investor goes looking elsewhere for formats to focus on.
So how do you avoid talking to investors and then getting nowhere?
dealing with an investor
In order to successfully conclude a negotiation with an investor, the best thing to do is to consider your business not as an activity focused on selling a product or service, but focused on the profitability of the investment.
To give you a concrete example, imagine being the owner of a shareholder data property in front of a real estate investor who is buying it for a transaction: where will he buy it, renovate it and then resell it. What would you talk about? The view and how large the living room is? Or how resellable is a perfectly renovated apartment in that area?
And this is exactly how he approaches a franchising business, with the exact same approach as a real estate transaction. He is not interested in understanding the quality of the finishings, he is only interested in the saleability of that property and he mainly asks himself two questions.
I don't think so; and so the negotiation stalls and the investor goes looking elsewhere for formats to focus on.
So how do you avoid talking to investors and then getting nowhere?
dealing with an investor
In order to successfully conclude a negotiation with an investor, the best thing to do is to consider your business not as an activity focused on selling a product or service, but focused on the profitability of the investment.
To give you a concrete example, imagine being the owner of a shareholder data property in front of a real estate investor who is buying it for a transaction: where will he buy it, renovate it and then resell it. What would you talk about? The view and how large the living room is? Or how resellable is a perfectly renovated apartment in that area?
And this is exactly how he approaches a franchising business, with the exact same approach as a real estate transaction. He is not interested in understanding the quality of the finishings, he is only interested in the saleability of that property and he mainly asks himself two questions.