The foundation of a startup’s success is a good team of investors because they can provide more than capital to a business. Good investors can become resources for realizing, organizing, and marketing ideas. It is important to know what to expect from an investor. Successful entrepreneurs possess the vital skills for attracting the best investors. However, attracting good investors is never a simple task, especially for startups. Investors want ideas that will change the world, and this is why it is difficult to attract them. But through preparation, research and strategy, you can attract investors and launch your business successfully. As a newbie with little or no experience, how do you convince potential investors that you are worth their time? Below is how to attract investors to a business.
1.Use communication to your advantage
We live in a world where the internet provides an opportunity to connect online and communicate in a timely manner. If you redirect people to your voicemail and emails often go unanswered, other people (including investors) will think that you do not have the time or just don’t care about responding. Investors want to know they can call you anytime and you will respond. If you are not in a position to respond immediately, then you should do that as soon as possible. Timely response to phone calls, emails, and voicemails shows that you are serious about your business.
2. Have a comprehensive and well-thought business plan
Do not just pitch how successful you think your ideas will be, you need to back up your statements with evidence in the form of research or case studies. Provide financial statements, interview reports, surveys and any other evidence that supports your claim. Information about potential competitors and your valued proposition/competitive advantage are also essential. If you cannot do it yourself, then hire a professional business consultant to craft a business plan that will attract the attention of investors, who are always interested in facts and figures or evidence-based claims.
Attend seminars, business fairs and other networking events in your industry to connect with people and meet potential investors.
4. Put your own money in your business before seeking investors
If investors see that you have risked your money, they begin to take your business idea more seriously. If you are not willing to invest in your own idea, how do you expect others to?
5. Schedule for face-to-face meetings and perform computer presentations
Use technology to your advantage. Video or other visual presentations back up your ideas. Use them to demonstrate how your product/ service works and how it will change the world.
6. Be Honest
In business, honesty is a non-negotiable trait. If you constantly misrepresent yourself and business, you are headed for failure. Do not promise what you know you will not deliver. It will only show how incompetent you are, and investors will not want to invest in you or your business.