Whether you are an established small business or a startup that is powered by the imagination of an entrepreneur, there are moments when you have to get some investors onboard to get the financial impetus your organization needs. Unfortunately, that is not an easy thing to do because investors value their money and will only invest if they are convinced that their investment will reap them rich rewards.
Here are some of the secrets that will help you to attract more investors to invest in your business.
1) Expand Your Network
Before you get down to making a perfect business plan and proposal to present in front of investor, it is important that you focus your energy towards expanding your network. Attend conferences and business events related to your business. This allows you to meet new people and allows you to present your startup or small business in a more organic fashion. By doing so, you can increases the chances of winning business sponsorship.
2) Highlight Your Strengths
When pitching your business in front of an investor, it is important that you highlight your strength. Tell them what you are good at and how well you have coped up with business hurdles that came your way in the past and how you will deal with them in the future. This will foster a sense of trust among investors and they will think about investing in your business.
3) Focus on Profit Potential
If you want to win the hearts of investors and show them that your business is worthy of their investment, then you must highlight the profit potential of your business. Most investors are interested in knowing how much time your business will take to recover their investment.
4) Be Realistic
Most startup seeking investment for their business exaggerates numbers in order to secure investment but this approach does more harm than good in the long run. It is better to be realistic in your approach when stating out numbers instead of making tall claims and false projection that land you in trouble later on. Give proofs that backs up your claims and the investor will trust you with your projections.
5) Executable Business Plan
Showing your investor a brilliant business plan is not enough to convince him or her to invest in your business. You have to go a step further and tell them how you will execute these plans to achieve the financial goals. An investor will only invest in your business when he or she is sure about the perfect execution of your plans.
6) Use Technology to Your Advantage
It is common to see startups and small businesses downplay the role of technology. As a result, they make minimum or no investment, which leads to their demise. If you want that investors put their money in your business, then you not only have to keep pace with technological advancements but also know how to make the most of technology and deliver exceptional results.
7) Crowd Funding
Another avenue that is opened by technology for investment seekers is crowd funding platforms. These crowd funding platforms have grown in popularity and helped thousands of businesses by giving them the financial push they need. Even if you have failed to convince an investor, you can still explore crowd funding platform, especially if you have an innovative product or a brilliant portfolio.
Conclusion
To win an investment for your business, you need to differentiate yourself from rest of the investment seekers. Most investors are usually interested in ROI so tell them what return they will get for investing in your business but don’t exaggerate things. Come up with an executable business plan and put major emphasis on the strengths of your business. By knowing these secrets, you can easily get the financial injections your business really need.
No comments:
Post a Comment