The biggest challenge and the advantage of an entrepreneur is attracting the best potential investors to his or her business. That is one of the best ways to raise funds for your business and it makes your baby stronger than it stands alone. Although it brings more advantages to your hand, it’s not a piece of cake.
Then how can we convince the investors to believe in our dream?
01. Communicate properly
Investors expect little information with more confidence. Therefore, you have to portrait your story only with the most important details. Convey your presentation like a story telling, not as a lecture. Follow the rules that we follow when we are doing presentation like less font, more images, short and clear and so on. Let the investor to ask questions at any time and answer them confidently with proof.
02. Clearly convey your expected edges
Investors are not going to throw their money into your business just believing on your vision. They invest to earn more than their investment. Therefore, you should show the expected practical margins with positive achievable actions that you are going to use. Always ensure to the investor that your business will play the game in an ethical manner.
03. Show your growth
Investors are keen to invest on companies which shows a constant growth. Investors like to see longevity and a stable marketplace full of consumers, therefore you should be able to show them the value of your business and how that value will only continue to grow. Convince the investor with strong points on how you going to cater them and the opportunities of growth that you see in your business.
04. Have a clear business model
Investors like things that they can work in as well, so having a clear and replicable business model is going to be one of the linchpins to getting an investor to sign on to your business. Ideally, your business model will be scalable and as detailed as possible, as investors are not looking for a static business, but one that will show lots of growth and has a good plan for how to achieve it.
05. Explain which market opportunity you have utilized for your business
The foundation of a business idea is the wants and needs of the consumers. Businesses are trying to provide a better solution than the competitors. You should enlighten the investor about the selected market, how you fulfill the needs by your product. It doesn’t matter whether the selected problem effecting a large number of people or a fewer, matter is whether you have selected the better product, better tactics to reach the market which makes profit to you and for the investor.
06. Ensure your investor that you have the best human capital to play the game
Investors are not only cared about the plan you displayed for them. They are curious about your employees, people who executes the plan. So, it’s important that you not only hire talented employees, but that you also make sure to show investors that you’ve got the best team for the job at hand.
07. Prove that you are different than the competitors
Having proprietary ownership over some part of your business is going to be the best way to have a competitive edge as nobody can replicate it, because you own it. These come in the forms of patents, trademarks, and copyrights, but trademark and copyright laws are less favorable for small businesses, so they don’t hold as much weight as a patent does. If you don’t have any of these things, you can still establish an edge with an innovative outlook instead.
Every investor is different and will certainly look for different things in each business that they’re looking to invest in. Therefore, it is always better to do your research, know who you’re talking to, and figure out how to capture their attention and persuade them to fund your company. However, despite the inherent differences between individual investors, there are a handful of traits that every investor wants to see in a business before offer funds to it. By following these above steps and proving your company’s value, growth potential, and individuality, you will be able to impress any investor and get the funding you need to take your business to the next level.