Getting genuine investors for your business is a requisite factor that can aid the growth of your business to a reasonable outcome. However, achieving this will require some unique strategies and skills.
According to research, one of the many challenges that affect businesses, especially start-ups is the issue of funding and the quest for the right investors sometimes can be tasking due to the inability of most entrepreneurs to derive realistic measures of inviting people to invest in their business.
It will be a good start for you as an entrepreneur to have a person or people as the case may be, who believes in your business enough and wants to partner with you or come around to make an investment. Beyond any sentiment, it takes a business mindset to attend that height.
Knowing how challenging landing real investors for your business can be, we have come up with seven tips that can lead you to get the right investors for your business.
7 Tips that Will Attract Investors for your Business
1. Be a Good Storyteller:
it is a great advantage to be able to tell a captivating story about your business and the big plans you have for your brand even from a humbling start. You can tell a story of what inspired your interest to venture into the business and briefly tell the possibilities the business has to offer you and your potential investors. You have to make your story very relatable and must be precise in your approach knowing that your prospective investor may not have the luxury of time to spend listening to you and all you want is to get them to buy your idea and bring out the money.
For instance, a young lady discovered a community of students in a remote environment that had footwear needs but had no access to the shoe market. The lady took it upon herself to connect the people in the community to the shoe market by becoming a shoe plug. Constructively putting a story of her journey in the business and the financial challenges she might be facing can easily get investors to her business.
2. Be as Real as Possible:
To get investors for your business, you need to be as real as possible. Being real in life is applicable and as well important in business. To attract real investors’ attention, you have to keep your numbers moderate and when talking about the risk involved in your business you have to be real to better inform your investors on what and what not to expect for staking their resources in your business. Your manners should not be left out, be polite while presenting to your prospective investor. Doing so will win your investors’ trust and get them open-minded to support you and even offer free advice on how to manage your business risks.
3. Practice your Pitch:
It is true that a lasting impression anybody may have about you will most definitely come from the first impression. To leave a good first impression in the mind of your prospective investors, you have to be adequately prepared. Practice what you want to say effectively and pay attention to all the details to confirm that all the tools needed for your presentation are fully ready. More than that, try to be a good time manager because how you manage your time can be a deciding factor for your potential investor to consider investing in your business. Also, be aware of the fact that you may not have a second time to make a first good impression that will get you the expected outcome, so be prepared.
4. Envisage Possible Questions:
Taking time to study all the nooks and crannies of your business can open your mind to the possible questions that may come from your prospective investors and the suitable answers to give before appearing in their midst. That means you have to understand the demography of your target customers. Realize also that your prospective investor may be interested in the risks involved in your business and how you intend to mitigate those risk factors. Your investor may be interested in your competitors and how unique your brand is to beat your rivals. All these are areas to consider before you pitch to your investors and to do this is to build a strong wall of confidence for your voice and position yourself to make a win.
5. Know your Investors:
You may wonder how knowing your investors before speaking to them can help you turn them from prospects to genuine investors. But it is a good step in getting the best outcome from your target investors. Feeding your mind with some important information about your potential investors can help you to distinguish between people that will likely invest in your business and those that will only waste your time for nothing. So what is the possible information you should find about your investors?
- You should verify to know your investor’s profile and his net worth.
- Verify to know his or her business/investment background.
- Find out their area of interest and what drives their attention, among other things.
Having this information will guide you to land the right people that will make an immediate move to invest in your business.
6. Show them the Money:
What will immediately get your potential investor to give you maximum attention lies in your ability to captivate his or her heart and mind with your story and how you will rapidly bring their return on investment within a stipulated time. As you are talking about your product, don’t dwell long on the problem you wish to solve, show them the money because every investor desires to recover huge money on time as the return on investment. Your ability to show them how realistically you will go to make the money will determine their chances of investing in your business. This means that you have to be deliberate in your plans and resist by all means the urge to lie about your numbers. For instance, if your business capacity can only bring $10000, don’t feel pressurized or desperate to impress your investor and end up mentioning bloated figures.
7. Be Brief and Concise:
I know that from the aforementioned ideas you are already planning to present an ice breaking story to get your investor engrossed and move to sign that cheque in your favor, that’s a good vibe but you have to learn how to manage your time. If you are allotted 5 minutes to pitch to your investor use it wisely and ensure to incorporate the most important fact about your business that the investors should know about. People with money barely have so much time to spend on a particular course, so to meet your expected end try to be swift in telling your business story.
The Benefits of Getting Investors for your Business
The benefits of having people that find interest in what you do and want to partner with you financially and otherwise can only get evergreen because the right investors can reduce the risk factors your business may be exposed to and position you on a good path for profit and excellence. Among the many benefits of getting an investor for your business let’s look at a few.
It brings about expansion:
Getting the right investors to invest in your business can bring about expansion and growth since you may not have all the financial resources to provide your business with all that it takes to give it a global taste and attract the right clients, you will need investor to help fund your business, redeem time and open your eyes to major areas of expansion.
It gives Access to Investor’s Expertise:
Getting the right investor that knows the nitty-gritty of the business and perhaps has a track record of business success can grant you access to the investor’s expertise and guide you on some important decisions you should make to grow and make good returns.
It brings about Rich Returns:
Significant benefits of getting the right investor for your business are that it will bring about financial rewards and help you to build good customer relationships because it will mitigate the cost of worrying about how to fund your business and increase your interest in satisfying the desire of your customers for the greater good.
Final thought on the 7 Tips that Will Attract Investors for your Business
It is the joy of every entrepreneur to meet a reliable investor that will stake his or her money in their business for the long term to enhance the success of their business. To achieve this goal, you will have to pay attention to the template given here and apply the same in your quest to get investors for your business.