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Appealing to Investors

If your business begins to grow rapidly, looking for an investor will likely become a necessity. While this can be a stressful event, taking certain strides can make you more appealing to investors and increase your chances of securing the funding you need. Here are 7 steps to help you prepare for and pitch to investors.

Prepare Your Finances.

The most crucial aspect of your pitch is the financial viability of your business. You are asking investors to place their faith in you, and they want to know their time and investment will be worthwhile. Before you even begin looking at prospective investors, prepare your finances. Limit all unnecessary spending and maximize your profit margin as much as possible. Make sure all your numbers add up and taxes have been handled. Show them their faith will be well placed.

Have a Well-Defined Niche Market.

Investors want to be assured your business is sustainable. Explaining the niche you fill and the advantages you have compared to your competitors will show your worth and business viability. This is also a great opportunity to explain your methods for continued growth.

Have a Great Team.

Your business is your baby, and it takes a village to raise a child. No business can be sustained and grown by just one individual. Having a great team with diverse skills and abundant knowledge is invaluable, to you and to investors.

Have an Optimistic Growth Plan.

Investors have to know they are going to get a return. Having a detailed strategy of how you plan to grow and expand your business is key. Be optimistic and enthusiastic, but be realistic as well. If your goal is 200% growth in 3 years, investors will disregard you immediately. Have an obtainable goal and many strategies to meet that goal outlined.

Be Honest About Where You See the Business Going.

Even after you have secured an investor, honesty is key. In your pitch be truthful about where you want your business to go. If you’re wanting to get off the bandwagon in 5 years, this is something you need to make clear to investors.

Be Passionate.

Many investors focus just as much on the person as the business. If you’re passionate about your business it shows them that you are committed to making it succeed. They are investing in you. No one knows your business as well as you do. Make sure you know every in and out so you can confidently answer any questions an investor might ask. Relax and know what you want to say. Practice your pitch. Nothing will put up a barrier as quickly as reading your speech. Just speak from the heart.

Be Patient.

Finally, remember that not every investor will be looking to invest in your industry. Obtaining funding can be hit and miss, but don’t let the rejections slow your momentum. From each dismissal learn what you can alter to be more appealing to the next investor.

Searching for investors can be stressful, but if you make sure to be prepared and patient, the process will go smoothly. Keep in mind that a rejection is not a reflection on you or your business, but is just a motivator to become better. The best of luck to you!

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