There is nothing like realizing you need investors to get you off track. While you’re generally proud of the product you make and the ideas you have, presenting to investors is the real test of entrepreneurship. What does it say about your business if it cannot attract the right investors? To make your dream a reality, you have to consider how you are going to attract the right investors to help fund it.
Of course, attracting investors is difficult, and it’s going to take time, energy, money, and resources. It’s not a walk in the park, but it shouldn’t also feel like you’re jumping off a cliff. You are confident about your products. Your business has a market. So, why would you be afraid of pitching it to investors?
Be Resourceful and Creative
Where can you find investors? You won’t necessarily find them lounging around social media. That’s not the most legitimate way to find investors. However, crowdfunding platforms do help because you can share information about your business with anyone who may want to make investments. Experts say that you have to seek investors through speaking engagements and industry events.
You have to introduce yourself to them and start pitching a bit about your business. If they are interested enough, you might find yourself in a meeting room with them in a week or so. This is why you have to be prepared for opportunities to pitch to investors. Wherever you are, learn to identify who your potential investors are. This will help you grab the chance when it presents itself.
Don’t discount the idea that your friends and family could potentially be your first investors. No one will trust you more than your family and friends. Talk to them about being partners or giving them a percentage of the profits once your business is off the ground. You can also ask them for a loan. However, a personal loan is always tricky, even when you have convinced your loved ones to invest.
Connect with the Investors
Investments are not always about money. It’s sometimes about how an investor feels about your products and services. Do they believe in them? Can they feel a connection with your business? Don’t just stand there and present your plan to investors. You have to demonstrate what your products can do. For instance, most entrepreneurs dabbling in manufacturing electric devices would need a printed circuit board prototype assembly. Not only will proper planning prove your intellectual property, but it will also demonstrate to investors and buyers that you have a quality product.
Your pitch to investors, then, should not just be about the investment to be made. It should also be about what the business can do. Be personable and approachable. Don’t look at investors like they’re a bank that will lend you money. These are people who also have ambitions, dreams, and goals. After the pitch, don’t leave yet. Stay and talk to the investors about their families and businesses. Get to know them beyond being people who can potentially help fund your business.
Investors will know if you’re faking it. Never try to make an investment solely about the money. No business survives that way. Put passion into your work. Investors can see through false promises, pretenses, and unrealistic goals.
Establish Your Reputation
You don’t need to look for investors if your reputation precedes the need for a pitch. Establishing your business’s reputation will go a long way toward proving that you are a company that investors can trust. When investors ask questions, it is tempting to give them the answers they want to hear. Give them honest answers. Prove to them that you are different from other businesses looking for investors and that you value your reputation more than tricking them into investing.
When a bank assesses your eligibility for a loan, it looks at your credit history and score. If it shows that you are responsible for your debts, your loan will get approved easily. This is the same with investors. They want to see that you have a reputation for staying true to your word. They need to see that you are committed to the business’ success.
It is truly challenging to attract investors. It takes a lot of work and a lot of sacrifices. But that does not mean you shouldn’t push for your dreams. The fulfillment of your dreams is only as good as the risks you are willing to take. So, go out there and pitch to your potential investors. As long as you understand your business and are committed to making it work, you will have your investors’ trust.
