Rocío Alejandra Castellanos Arias, Advisor to the General Directorate, The Agency for Reincorporation and Standardization (ARN)

Recalling one occasion about a question that we weren't prepared for, one investor inquired about the medium and long-term sustainability of this project. A frequently asked question is, what will happen after they invest the resources?

We should have a likely scenario, for both the investor and the population we are impacting, of what is going to happen when these resources or this project reach completion. Taking into account sustainability indicators and exit criteria is very important to be prepared in these situations.

Santiago Aparicio, Founder, Terramarte

One question I remember in an investment round in Panama, they asked about the team. We had to show that there is a team. But when they started digging and asked, "Are these people devoting 100% of their time to the venture?" Well, the answer was "no." We only had people who supported us on a part-time basis.

So, I believe that you have to be prepared when you say that there is a team, what the team means and who is on the team. And again, if one is alone, it's better to say, "Look, I'm alone today, but I envision that we need these three positions with this profile, and they would cost this much."

María Alejandra Castro Morales, Founder & Director, Siembra Cultura

A question that I had difficulty answering when I met with an investor was, "What are your business strategies to [enhance] reach or improve market position relative to the competition?"

I didn't have clarity on those business strategies and I think it was a learning experience for us to have clarity on those strategies.

Santiago Aparicio, Founder, Terramarte

I think the key issue that a social entrepreneur should address in their first meetings with investors is to be convinced that their venture is indeed profitable. I believe this is a key issue and I mention it because it is very common that an entrepreneur approaches [an investor] but they themselves are not totally convinced.

So, that's the first question. If the venture at that time is still not profitable, calmly and confidently address that, and raise the prospects of when it will be profitable.

Questions to Prepare:

• How do you plan to sustain the project in the medium and long-term?

• Who's on your team, and how committed are they?

• What's your business strategy to secure a larger market position amidst competition?

• Is your organization currently profitable, and if not, when can profitability be expected?