HOW TO ATTRACT INVESTORS TO YOUR BUSINESS
Ever wondered steps to take to be your business out there what to do and not do in order to be able to pull in investors to that new and start up business. Maybe for a launch or a prelaunch, well this article will dive in to more about investors and how to pull them to business of yours. First off, let’s know more about an investor and what their work really is.
WHO IS AN INVESTOR?
An investor is an individual or a business entity or a financial entity who takes their financial capital and puts it (or better, invests it) in a particular commodity, currency, or company in hopes of getting some semblance of financial returns in the future. A company can be an investor, and even a mutual fund can be called an investor.
An investor invests through various markets and financial channels that help channel their capital into a singular objective so that they can gain additional wealth over time. Investor invests their money for a variety of reasons. For some people, it is a job, for some, it is a passion, and for others, it is just a means of earning additional income over time that can help them in the later years of their life. An investor is an integral part of the business world, and it is imperative that you have basic knowledge about them and how they function.
HOW TO ATTRACT AN INVESTOR TO YOUR BUSINESS
There have to be steps you should dutifully take while trying to attract an investor to your business. Below are the steps you can take while trying to get an investor;
1.FIND SOMEONE WHO WILL BE INTERESTED IN YOUR BUSINESS: You should be able to scout someone who will be willingly to invest in your business. More so someone whose field of interest will be related to your business. The key to your success is to understand what investors want from your business. How can you pitch and pitch a viable business model? What about your company is going to get investors interested? Here are three types of investors that entrepreneurs should know about. Lender Investors They are the “traditional” investors that investors look to. These investors want a return on their money. Lenders typically expect to get the return from your start up in the form of a percentage or percentage interest, depending on the credit they have with you. Lenders are very risk-averse and are only willing to fund your business if they are 100% confident that you are going to be successful.
2. BE CONFIDENT
When giving your pitch ensure to ensue confidence, make sure you appear confident like you know what you are talking about as this will help convince the investors to trust your business and be willing to invest in you. Even though your business when invested in will bring about many profits but you don’t appear confident while talking about it, it will not convince an investor to trust in you and invest in you. Always remember confidence matters a whole lot.
3. MAKE SURE TO SPEAK
Make sure to speak the business language. Most people might come to you with some business language and words and this might get you confuse, don’t get stuck in your head make sure to read beforehand on business terms so as to be able to tackle this issues and not look stupid before your investor. Always remember you got this you got this.
4. PITCH A RETURN ON INVESTMENT
While investors may believe in your business, their investment is ultimately a means to an end—they need to make money on their investment. So, it’s important to highlight what they will personally gain from investing in your business.
“Whether you’re pitching an angel, VC, or your rich uncle, it’s imperative to show how you’re going to get them a return,” explains Nick Braun of PetInsuranceQuotes.com. “It’s tempting to focus on yourself and your business model, but ultimately, investors want to know what’s in it for them. The best way to stand out and get interest is to clearly illustrate how and when you will get them a return.”
5. GO PLACES AND BE ACQUAINTED
Don’t just stay at home and hope for an investor to fall from heaven and invest in your business. Go out to places like fundraiser and get acquainted to people who can introduce you to a potential investor. Not just fundraiser maybe business hang out and what not. Remember while doing this try not to sell yourself short like. Try to put yourself on a high platter. Don’t try to follow the crowd, be unique and different in your approach and make the investor find a good reason to invest in you. Also, not just a good reason but what level of profit investing in you will bring about.
We hope this article was insightful.