The Devil's in the Details
If you've managed to get a potential investor to read this far into the profile, congratulations! You've passed the highest hurdle.
But you're not home free quite yet.
The FAQ dives deeper into the heart and mechanics of your business, giving investors a peek into your motives, reasoning, and long-term plans. It's not an exaggeration to say the FAQ can make-or-break an investment.
1. Ask (and answer) the Right Questions
In the FAQ tab you'll find our recommended questions, which you should definitely answer. But you'll need to anticipate questions investors may have, not only about your business, but about the market you're tackling.
For instance, if you own a café in Seattle, investors want to know what does success look like for you in particular? What are your greatest obstacles in opening up a second brick-and-mortar location? What's unique about running a coffee shop in Seattle rather than New York City?
Example: Zenefits
Cover previous experience that reveals mastery of the problem at hand.
2. Keep it Brief
The Q&A will definitely be longer than anything else you'll write for the profile, but no one wants to confront a wall of text. Continue to hit key points in as few words as possible without sacrificing valuable information.
Example: Goldbely
Keep it simple but don't lose the personality!
3. The Wefunder Process
Here's a look into how we produce the Q&A sections of our Startup-of-the-Week profiles. We start with a recorded 45 minute phone (or Skype) interview with the CEO. We send the audio file to get transcribed (we use JotEngine) and get the full transcript after about two days.
We then rewrite and redact the entire transcript, cutting over 75% of the original interview. Afterwards, we send it back to the CEO for approval and then publish!
You're Not a Used Car Salesman
Investors know there are risks and challenges. Don’t cherry-pick your questions to glamorize your business. Good founders and owners know there are holes and address those holes. Ask and answer the hardest questions.
If done well, you will have anticipated and clarified potential questions and proved just how strong a hold you have of the market you're charging into.
