You want to be ready well in advance of speaking with any interested investors. You'll need a presentation that is fine-tuned with your business and revenue model, historical and forecasted financials, as well as detailed financial assumptions to follow up with. Make sure you convey that you fully understand your market.
"As we know, forecasted financials never translate to the real world," Jeff Stanger shared. "But the important thing is, for sophisticated investors, it lets them know that you understand your total available market and your expenses."
You'll also want to prepare your due diligence data room before meeting with investors. A well-organized due diligence data room can take three weeks or longer to put together. If your company makes an investor wait that long, they may make a decision on another deal by the time it's ready—and you'll lose out.
"This is also true of financial statements and accounting standards," Armand Capisciolto added. "I've seen deals fall apart because they couldn't get their financial statements and audits done in time. It's important to get your house in order before someone knocks on your door with a deal."
The more prepared you are, the better impression investors will have of your company—and of its future prospects.