As a business owner, you know that the fuel for developing and growing your company is capital investment. Though you can bring your own money into the company, it is better to get the help of outside investors to keep your funding up.
Though there are several programs out there that encourage investment such as SEIS loss relief, you are still going to do a lot of work to convince people to put their money into your company.
Here are a few tips that should help to get you the funding you need:
Ready Your Financials
One of the first things you should be ready to show is your financial record for the past few years. A clear and properly audited financial record will show your company’s performance and development. It can also be solid proof that your business is doing well. Investors will see where their investments could potentially go and if they like what they see, it would most likely help improve your chances of getting a good investment or funding.
There’s some truth in the saying that it’s not what you know that’s important but who you know. Go out and build your network. Don’t be too aggressive about it though. You want to encourage people to invest in your business and the best way to do that is by letting potential investors know that your business presents a good return on investment.
A soft sell via networking is a good idea. You’re not just depending on your pitch but also your social connections with your potential investors.
Have an Impressive Team
When people look at your company, they just won’t be looking at the numbers but also the people behind the operations. Investors like visionary leaders, but they like a group of talented people more since this means there are fewer points of failure. If you can bring in the right people, then your potential to get more investors will go up.
Draw Up a Plan for Growth
It’s not just the present and the past that investors like to look at. They will also look at your future. You want to be able to show to them that you have a plan for your future growth. This gives them an idea about what you are planning. It would be even better if the plan projects a solid growth for your company. This is what gets investors excited and willing to put money into your company.
Give Them a Chance to Participate
Another way to convince investors to invest in your company is by giving them a chance to participate in the company. This doesn’t mean that they will get a job. Maybe include them as a mentor or involve them in the decision-making process. Including this in the investment offer allows your potential investors a chance to influence their investment while also giving them a peek at your operations.
Investors are a big help in giving your business the jumpstart it needs to become truly competitive. Attracting them is integral for many long-term plans. With the tips above, you should be able to convince them that your company is a sure bet.