The preparation

• Do you have a financial plan that clearly shows the source and use of your funds over time? Does it show any shortfalls?
• Can you clearly allocate your current financing requirements? Does this arise from your company or from a new decision?
• Have you had due diligence carried out on your business model - preferably by an independent service provider - and have you also taken into account changes in the market and competition?
• Have you considered various options and scenarios? What is the worst-case scenario and how can it be overcome?
• Can you back up your financing request with sufficient collateral and/or special entrepreneurial prospects?
• Are you only looking for an investor with the financing or do you also need additional expertise in your company?
• Do you want to share the risk of your investment decision and thus also the profit expectation? And are you prepared to share the responsibility with someone else?
• Are your controlling tools geared towards evaluating certain processes in your company?
• Are you prepared to hand over and communicate information to a party that is prepared to take on the investment risk with you?
• What is your long-term goal and does the current investment and financing decision fit into this target corridor?

The decision-making process

• Decide on a form of financing that suits your goals, your sense of security, your entrepreneurial risk appetite and your prospects.
• Research possible contacts with regard to your financing focus.
• Develop your business plan before the talks and check yourself for contradictions and assumptions.
• Sharpen and practice your argumentation in a question/answer scenario.
• Ask for references, especially when talking to private equity and venture capital providers.
• Ask specifically what expectations your new partner has.
• Clarify what it means in concrete terms if certain agreed targets are not achieved.
• Work towards receiving several comparable offers at the same time if possible.
• Take your time and check whether you have been able to build mutual trust during the talks and discussions.
• Also check possible exit strategies. What happens in the event of a premature break-up?