Catching the attention of investors to fund your business is perhaps the most challenging thing. All other things can be tackled as they are on your own decision. When something depends on the decisions of others, it is always a bit tricky. Attaining the confidence of investors is one of such situations. To get the money from them, you need to master skills that make them pull some money out from their pockets.
1. Reason to invest is in results
Existing things do not need any justification and that is applicable in the business world too. To get funds, you need to prove your worth and that can be done only by showing satisfactory results. Prove that your business is in action mode with some good achievements to show.
For investors, it is never easy to take the risk on an idea, which has not actual results to give. Acquire customers or users to justify that your product/service is in demand. A new horse that has never been in the race does not catch good investment on its name. You need to be a running horse.
2. Tell the possibilities of return on investment
It is pure business with nothing personal or emotional. People put their money in something only if they are sure of a good return in what they are investing. Do you also have something to return to your investors???? Think over it and create (not artificially) the grounds on which you can explain a good profit in exchange of the money given to you.
Time is another important factor that can help you keep a hold on the investors. Saying the things like – ‘I can assure you a double money back in just 3 months’ or ‘Your money is sure to come back in a few weeks’ always create a magnetic effect.
3. Describe the step-by-step strategy
According to human nature, anything that is familiar gets the acceptance more easily than an uncertain thing. Investors are not only interested in the end result but also how you will achieve it. Explain them your business strategy word by word, step-by-step. This makes them feel connected to you as they are getting to know everything about your businesses.
Include these points while explaining things –
- Your target market
- Customer profile
- Product roadmap
- Your strategies in coming 12 or 24 months and related targets
- Your achievements by now
This has more psychological effect than the materialistic one. It is important to create a feel of connection and telling your strategy is the best way to do that. However, this does not mean to tell your secrets or some success ways (obviously genuine) that you apply.
4. Ask for the advice
This again is an indirect way of asking for money. The stereotypical way of cold calling or sending e-mails asking for the money is boring and annoying for many out there. Just as a businessperson you try to connect with your customers, you need to do the same with the investors too. In place of just asking for financial support, first take their advice.
This has two benefits –
- The investors get able to make and feel a relation with your business
- You get to know about the flaws, which were going unnoticed. This always brings improvement.
5. Keep a co-founder
The investors are always interested in the co-founders. If you have smart and sensible ones, you can gain the trust easily. Single founder is never a good idea and also it is the most rare case. Having a reliable leadership team, helps the investors build the confidence to put their money in your business. Even money is the slave of perceptions. Co-founders can help make a positive image of your business and this is exactly what you want.
6. Business in bad credit situation? Improve before you approach
Yes, you know very well that not only people but the businesses have their credit scores. If due to any reason your business has a poor credit situation then you need to first improve it. Investors can never trust a person who is unable to pay the general expenses. The best solution for this is to pay the bills, expenses and obligations on time. Besides, keep exploring the financial solutions that can help rebuild the credit score performance. There are several specialised online loan products that help in improvement of payment history. For instance – the bad credit loans on instant decision in Ireland for businesses is a workable tool. Borrow funds on customised rates, the instalments are small, pay them on time and by the time you pay off the loan, the credit rating improves.
The above tips are useful and practical but only if you make their best use. Why not mix some of your own ways with these and create a great plan to attract investors as well as money. Deal Done?
Description – Know the tips to catch attention of the investors. The tips are simple but important for every start-up or small business. Pay heed as they may feed your need.