Running business is already challenging itself. There are many parts that are considered challenging more than those are not. Finding funding is considered one of the biggest challenges for any business owners and entrepreneurs especially on the initial stage of growing a business. Investors are usually more hesitant than they look. They don’t like jumping in without knowing the risk. They are the one who have the money after all. They don’t want their money to go to waste by investing in random new companies. Hence, it is on you as entrepreneur to find the best strategies to attract investors’ attention.
How to attract more investors
Obtaining funding needs well-thought and planned strategies regardless who your prospective investors are. Here are some of strategies of attracting investors you can consider to fund your small business:
Before hopping on the fundraising train, it is best to have a decent product or service with proof that people really want to buy it. Business result is what most investors consider before investing. Make sure to build and sell your products or services first then show your prospective investors how the result. They will see the potential without the need for you to talk much. Also, you need to communicate with passion. Most investors like people who know their self-importance. So sell that to them.
Try listing objections that possible come up from your prospective investors. By preparing the list, you will be more prepared of what to answer. You can anticipate things that can put them on doubt. List as many questions as possible so you won’t be caught off guard later. Also, preparing this list will make you appear more confident when answering their question later. It is an added point for you already because investors usually don’t like people who look hesitant or unsure.
You can also attract more investors by involving in networking events. There are many professionals there you will encounter with. You can just let the others know about your brand because it is out in the open. You will encounter with professionals especially in your field while having the opportunity to learn many tips.
Do not use strategies that deceive your prospective investors in the process. In fact, you need to use honesty and transparency as your ultimate weapon. Complete transparency is important to build trust. Once you get the investors supporting your business financially, always deliver up-to-date reports on regular basis be it weekly, monthly, or quarterly. Therefore, they can always monitor and know the status of their investment.
If you are planning on giving a presentation to attract your prospective investors, take time to fully craft your presentation. Avoid using heavy-text slides because they are boring. Keep your slides interesting with high definition visuals graphics and clear messages. Your presentation is more preferable for the investors if you keep it short, simple, interesting, and to-the point. Explain complex concept using simple words and clear explanation to make it more understandable for your investors.